Companies to deposit an advance tax on rents
For the first time this year, companies and self-insured persons using rented premises will be obliged to pay an advance tax on the income of the owners, reminded NRA (National Revenue Agency). So far, the tax liable entities have been the owners of the real estates. This change was necessitated by the amendments to the Income Taxes on Natural Persons Act which entered into force on January 1, 2011, announced NRA. The amendments oblige companies to make an advance deposit of 10% on the rent amount paid to the owners. The sum will be calculated by the reduction of the rent by 10% of legitimate costs, while the difference will be multiplied by the tax rate of 10%. For example, if a company uses premises, being rented at BGN 1,000, the tax base will be reduced by 10% and then the enterprise will have to make advance deposit of the tax due of BGN 90 on the balance of BGN 900. The tax which the payer of rental income is obliged to withhold should be deposited by the 10th day of the month following the one during which it was deducted.
NRA representatives reminded that physical persons who had leased premises last year should declare their income to NRA until May 2, 2011. Upon lodging the annual income-tax return, landlords have to fill Annex № 4 which is an integral part of the annual tax declaration. Taxpayers who file their income-tax returns and deposit the tax due by February 10, 2011, could avail themselves of 5% discount. The same rebate will also be granted to those who upload their declaration electronically with an electronic signature and deposit the tax payable until May 2, 2011. In fact, taxpayers could choose to take advantage of only one of the two discounts.
Text source: klassa.bg
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