We draw your attention that you are responsible to declare the received taxable income from currency transactions and financial assets in your annual tax statement and pay the tax due. Bull Trend Brokerage issues the necessary notes and reports for individuals.
The tax rate is 10 percent
Resident individuals submit an annual tax declaration form and applications in the NRA to the permanent address of the person acquiring the income. The annual tax is paid by 30 April of the year following the acquisition of the income.
Since the beginning of 2007 a new tax law on personal income is in effect, which more fully and comprehensively treats the taxation of your income. This paper aims to draw attention to your tax liabilities arising from transactions executed through Bull Trend Brokerage Ltd.
The law explicitly states the non-taxable income and defines what is considered income by making a reservation that it shall not apply to income from business within the meaning of the Commercial Law, including a sole proprietor.
According to Art. 13. (1) of Income taxes on natural persons act these are not taxable income relating financial instruments:
Article 13. (1) Taxability shall not apply to:
1. any income acquired during the tax year from the sale or exchange of:
(a) (amended, SG No. 95/2009, effective 1.01.2010) one residential immovable property, provided that more than three years have elapsed between the date of acquisition and the date of sale or exchange;
(b) up to two immovable properties, as well as any number of agricultural and forest properties, provided that more than five years have elapsed between the date of acquisition and the date of sale or exchange;
2. any income accruing from the sale or exchange of movable property, with the exception of:
(a) means of transport by road, air and water, provided that the period from the date of acquisition to the date of sale or exchange is less than one year;
(b) works of art, collectors' items and antiques;
(c) shares, interests, compensation instruments, investment vouchers and other financial assets, as well as the income accruing from trade in foreign exchange;
(d) movable property delivered to persons who have the right to carry out collection, transport, recovery or disposal of waste in accordance with the Waste Management Act;
3. (amended, SG No. 106/2008, effective 1.01.2009) any income accruing from disposition of financial instruments within the meaning given by Item 11 of § 1 of the Supplementary Provisions herein;
4. any profit or another source of owners' equity distributed in the form of new interests and shares in commercial corporations, as well as any profit or another source of owners' equity distributed in the form of an increase of the nominal value of the previously issued interests and shares;
5. any income accruing to persons indemnified according to the procedure of a statutory instrument from the sale or exchange of compensation instruments and investment vouchers received as indemnity;
From the stated above taxable income is:
Sale or exchange of shares and other financial assets on unregulated market, income from buying and selling currency, income from the sale of compensatory instruments and investment vouchers, which are not compensation under legislation, but were bought on unregulated or regulated Bulgarian securities market.
The tax base for the year is determined by the requirements of Article 33 of the Income taxes on natural persons act:
Article 33. (1) The taxable income accruing from the sale or exchange of immovable property, including of limited rights in rem to any such property, shall be determined by debiting the positive difference between the selling price and the cost of acquisition of any such property with 10 per cent expenses.
(2) The taxable income shall be the positive difference between the selling price and the cost of acquisition upon sale or exchange of:
1. means of transport by road, air and water;
2. works of art, collectors' items and antiques.
(3) The taxable income accruing from the sale or exchange of shares, interests, compensation instruments, investment vouchers and other financial assets, as well as from trade in foreign exchange, shall be the sum total of the profits realized during the year, determined for each particular transaction, debited with the sum total of the losses realized during the year, determined for each articular transaction.
(4) The realized profit/loss referred to in Paragraph (3) shall be determined by debiting the selling price with the cost of acquisition of the financial asset. Where any financial assets of one and the same type, issued by one and the same person, have different costs of acquisition and part of the said assets is subsequently sold and it cannot be proven which part is sold, the cost of acquisition of each such asset shall be the weighted average price determined on the basis of the cost of acquisition of the financial assets of the same type and issuer held at the date of the sale.
(5) The selling price shall include everything acquired by the person in connection with the ,sale/exchange, including any consideration other than money.