All of the legally established tax terms for declaring and depositing taxes, are being prolonged and also a specific way of using the tax reliefs is being established:
A. In the Corporate income tax Act (CITA):
1. Declaring and deposing corporate tax:
The final term of depositing the Annual tax declaration, which, according to art.92 p.2 CITA, is being deposited until the 31 of March of the next year, in the territorial administration of the National revenue agency, where the tax obligated person is registered, during the extraordinary situation, is prolonged until the 30th of June 2020.
The final term, concerning the tax obligated person to deposit the corporate tax for the relevant year, according to art.93 CITA, is also being prolonged, as instead of 31 of March of the next year, it is being deposited until 30th of June 2020.
The prolonging of the final term of depositing the Annual tax declaration, is reflecting on the expenses taxes, which should be declared along with the Annual tax declaration.
The final term of its depositing- according to art.217 p.2 CITA, which is usually until the 31 of March of the next year, is also being prolonged until the 30th of June 2020.
2. The final terms for the gambling activity, regulated in CITA, are also being prolonged.
3. The subsidiary activities tax, according to the Gambling Act (GA):
The final term of declaring the subsidiary activities tax, according to the GA – art.219,p.4 CITA, which is being declared with the Annual tax declaration by form, which is being deposited until the 31st of March of the following year in the territorial administration of National revenue agency, where the tax obligated person is registered, is also being prolonged until the 30th of June 2020. The obligation of depositing the alternative tax, by which they are being chargeable in the amount of 12 from hundred, is also being prolonged until the 30th of June 2020.
4. Report for the gambling activity:
The final term for the tax obligated people, who are paying the gambling activity tax, is also being prolonged from the 31st of March to the 30th of June 2020, for depositing the annual report for the activity in the territorial administration of the National revenue agency, where the tax obligated person is registered – art. 219, p. 5 CITA.
5. Taxes over the income of the budgetary companies:
The final term, until which the budgetary companies must deposit annual tax declaration by form, is also being prolonged - from the 31st of March of the following year, is becoming until the 30th of June 2020- art.252 p.1 CITA.
The final term to deposit the tax over the incomes of the budgetary companies, which is usually being deposited until the 31st of March of the following year, is being prolonged until the 30th of June 2020- art. 253 CITA.
6. Ships operating activities tax:
The final term, during which the tax obligated persons, who are practicing ships operating activities and are obliged to deposit annual tax declaration by form, is being prolonged from the 31st of March of the following year, until the 30th of June 2020.
The final term, during which the tax obligated people, who are practicing ships operating activities are obliged to deposit the tax, is being prolonged from the 31st of March of the following year, until the 30th of June 2020.
B. Advanced payments:
CITA is being executed by taking under consideration the following special features, towards the advanced payments:
In 2020, the advanced payments, according to CITA, are being paid according to the applicable 14th chapter of the Act, when taking under consideration some special features, enacted in the new legislation for the extraordinary situation:
1. When a tax obligated person has already deposited the annual tax declaration for 2019, before the new Act has entered into power, the advanced payments are being paid according to the declared; when necessary, the tax obligated ones, could deposit correcting declaration, according to art.88 CITA.
2. When until the 15th of April 2020 a tax obligated person executes its obligations for depositing the annual tax declaration for 2019, the advanced payments are made in the amount of what has been declared.
3. When until the 15th of April 2020 a tax obligated person has not deposited its annual tax declaration for 2019, those advanced payments have to be declared by form of the annual tax declaration until the 15th of April 2020, as the obligated person should only write down some parts of the declaration, which are concerning the declaring the advanced payments for the present year.
NB: Persons, conducting economic business as merchants, as described in the Commercial Act, including the sole proprietorship, the natural persons, registered as agricultural owners, are applying the written above, with one difference- that the final term to deposit the declaration for the advanced payment for them is until the 30th of April, instead of the 15th of April for legal entities.
C. Local taxes- Temporarily new regulation of the reduction in prices for properties and motor vehicles:
In 2020, due to the extraordinary state, the legislator is giving reduction in the price for the local taxes – 5 from hundred, to the persons, who pre-payed until the 30th of June the tax for the properties and the motor vehicles for the whole year.
D. Income taxes on natural persons Act (ITNPA):
The final term to deposit the annual tax declaration, according to art.50 ITNPA for 2019 and to deposit the tax over the annual tax basis, by the persons, described in art.51 p.1 INTPA, during the period of extraordinary state, is being prolonged until the 30th of June 2020.
The final term to deposit the tax for executing economic activities – art.47 p.2 INTPA, is prolonged from the 30th of April, to 30th of June 2020.
For information, which exactly categories of persons are influenced by art.47 – these are the persons, executing economic activities as merchants, according to the Commercial Act, including the sole proprietorship, the natural persons, registered as agricultural owners, to whom are being applied the articles for taxation of the expenses and for the taxes, withhold by the source, from the CITA. If a tax is payed according to that article, the tax, according to art.217 CITA, is not being paid.
E. New regulation of the price reduction, according to art.53 p.6 INTPA:
If the persons, executing economic activities as merchants, according to the Commercial Act, including the sole proprietorship, the natural persons, registered as agricultural owners, want to take advantage of the reduction of the price, entered in 2019, which is 5 from 100 of the tax for paying additional on the annual tax declaration – art.53 p.6 INTPA, which regulates a possibility for reduction of the price, but not more than BGN 500, in condition that the tax obligated persons do not have public obligations, liable to enforced execution during the moment of the submission of the declaration, the tax obligated persons must deposit the declaration and the tax for additional payment until 31st of May 2020, instead of 31st of March.
F. Accountancy act (AA):
The final term for depositing declaration for inactivity, regulated in art.38 p.9 , section 2 from AA, is being prolonged until the 30th of June 2020, instead of the 31st of March.
The final term for depositing the annual financial statement of the legal entities is being prolonged from 30th of June to the 30th of September 2020.
G. Suspending of important terms on tax legal proceedings:
Until the cancellation of the extraordinary state, the following writings, concerning the limitation periods and the executive actions, are newly temporarily changed:
1. The limitation period of 10 years, regulated in art.171 Tax-Insurance procedure code (TIPC), or “the 10 years term, reckoned from the 1st of January of the year, following the year, during which the public obligation was supposed to be paid, after which period all of the public obligations are considered discharged, nevertheless the suspension or the interruption of the limitation period, except from the situations, when the obligation has been postponed or deferred, the execution is stopped by the debtor’s wish or a complaint by the rules of chapter 16, section II a) has been lodged, is not applicable.
2. The reasons, concerning the limitation periods, are complementing one another, except from the cases, described in art.172 p.1 TIPC, the limitation period is suspended for the period of extraordinary situation;
3. The term, according to art.193 p.4 TIPC, stops. That term regulates the compulsory execution during insolvency. That means that the regulated right, saying that if in 6 months period from initiating the insolvency proceeding of the debtor the public performer has not made profit of the property, described in p.1 of the same article, then it is being given from the public performer to the bankruptcy manager and a profit has to be made in the insolvency proceeding, would not be applicable until the extraordinary situation comes to an end.
4. An executive process, conducted by the rules of TIPC, is not being established, unless there is need to be protected excessively important national or public interests, or it there is a possibility for frustration or seriously execution of the act, or if due to the delaying of the execution could follow a damage, which is significant or hard to repair.
5. The action of enforced execution, according to TIPC, stops; the actions, made before the suspension, reserve their force; after the suspension, the public performer could not perform any new execution actions, but could perform actions that guarantee the claims, so as to divide incomes from the execution case; the execution process is being renovated after the expiry of the period of the extraordinary situation; before the period of the extraordinary situation comes to an end, the execution process is being renovated with an act of the public performer, asked by the debtor, for executing the :
а) claims and financial resources of banks;
б) claims, owed by a 3rd person ;
в) invested valuables in safe-deposits, including cash box contents;
6. After the realization of the execution, described in point 5, the execution process is stopping;
7. The term, described in art.146 p.10 lasts 7 days and it concerns the public sale in TIPC, and in that term, the public performer takes the buyer in possession in the property, on the basis of the decree, stops.
Tax obligated persons must take under consideration the following: The terms and the processes on the basis of determination, declaring, presenting, guarantee and collecting obligations for custom duties, taxes, excise duties, obligatory insurance payments for the state public insurance funds, health insurance, Teacher pension fund and the funds for additional obligatory pension insurance, state and municipality taxes and other public payments, regulated in TIPC, Customs Act, The excise duties and tax warehouses Act, INTPA, CITA, Tax on value added Act, Local taxes Act, Health insurance Act, Gambling Act, Social Security Code are not changing, except from the cases, written above.
In other words, their obligations are not being stopped or abrogated, but it is being allowed to move them further in time.
NB: It is important to make an impact on the fact that the law order, written above, in the different tax acts and codes are going to be applied “temporarily”, so as for the tax campaign in 2020 to be organized in that extraordinary situation. That means that the “usual” way of applying CITA, INTPA, AA, TIPC, would continue after the abrogation of the new Act for the measurements and actions during the time of extraordinary situation, announced with an act of the Government on the 13th of March 2020. When the abrogation is already in force, all of the cases, that were left unsolved, which are connected to the “extraordinary” law order, would be solved.
