Taxation of the Foreign Natural Persons According to the Bulgarian Tax Legislation

By: NYD Law
From 1st of January 2008 the taxation of the natural persons has been amended in accordance with the EU regulations and the tax rate for the incomes was fixed to 10%.

The tax legislation in Bulgaria recognizes two types of Taxable Persons-local natural persons and foreign natural persons.

By law a foreign natural person is any person who has no permanent residence in Bulgaria and whose centre of vital interests is not situated in Bulgaria as well as a person who is not present within the territory of Bulgaria for a period exceeding 183 days in any twelve-month period.

Any foreign natural person shall be liable to pay tax in respect of any income acquired from sources inside the Republic of Bulgaria, including any income from rent or other provision for use of movable or immovable property.

However, there are some categories of income which are not subject to taxation. These are explicitly listed in the Income Taxes on Natural Persons Act. For example, taxation shall not apply to any income acquired during the tax year from the sale or exchange of:

• one residential immovable property, regardless of the date of acquisition of the said property;

• 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

So, if a foreign natural person sales one immovable property during one financial year, the foreign natural person shall not be liable to pay tax for the received income regardless of the date of acquisition of the said property.

In relation to the above the taxation shall apply to the income which is not included in the list of Non-Taxable Incomes. The taxable incomes are for example the incomes from rent and from the sale or exchange of immovable property. For the purpose of determination of the annual amount of tax, first the received annual income from rent shall be reduced with 10 % fixed amount of expenses and the rest of the amount shall be multiplied with 10 % tax rate. The taxable income acquired from the sale or exchange of immovable 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 as the rest of the amount shall be multiplied with 10 % tax rate.

The non-resident natural persons (foreign persons) shall submit an annual tax return, completed in a standard form in respect of the income subject to levy of tax on the aggregate annual taxable amount.
The annual tax return shall be submitted on or before the 30th day of April of the year next succeeding the year of acquisition of the income.

When the income subject to levy of tax originates from rent and is paid by the management company, then the annual tax return shall be submitted by the management company not by the foreign person. Respectively, when the income from rent is paid by local natural person, then the foreign person who has received the income shall be liable to submit the annual tax return.

After the new amendments in the tax legislation the rate of final tax for the income of the natural persons and of the legal entities is 10 %.

However, the advantage of establishing of legal entity is that the expenses which have been made during the financial year are deducted from the annual income and the received amount is treated as a taxable profit. For example, if a foreign person is renting hisher property through a local company then all the expenses, which have been made for utilities, staff, etc. shall be deducted from the received income and the difference shall be taxed with 10 % rate.

When a foreign person receives an income as a natural person, then all the expenses which have been paid for utilities, staff, etc. shall not be deducted from the received income.

Having said the above, we hope that this article will be in assistance for any foreign person, who intends to invest in Bulgaria.

Where Did Our Business Laws and Regulations Come From - How Have They Changed?

By Lance Winslow

The Business Laws in our nation and our regulations have become so complex they seem to be choking the viability of not only our court system, but also adding layers of laws to companies to the point of suffocation.

The bureaucracy is not only in government, but it has reached all levels of business small, medium and large. Of course, some rules of the game are needed to help our economic machine with standardization.

But, with all the case law, written laws and lawsuits, the laws no longer serve the purpose of allowing business to know in advance what to expect or give them adequate measure to dictate policies within their companies.

One thing that I have noticed is that if you pick up an old business law book prior to 1940, well, there is no much in it. It's pretty simple and down to earth. When reading through the chapters you'll find that it all makes sense, it's all traceable and you can find meaning.

Today things are much different. I would advise any MBA student or individual looking to get into business law to read old business law books and text books. In fact, let me recommend a very good one to you that I have in my own personal library:

"A Text Book of Law and Business" by William H. Spencer; McGraw-Hill Book Company Incorporated; New York, NY; 1938.

If you ever find yourself asking the questions; 1.) Where Did Our Business Laws and Regulations Come From or; 2.) How Have Our Business Laws Changed Over the Years? Then just reading through this work will shed some light on the subject. So, think on it.

"Lance Winslow" - Lance Winslow's Bio. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.

Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Tags: Business Laws

New Bankruptcy Laws and the Crucial Changes

By Dale P. Stewart

With the recent economic downturn, seems like filing bankruptcy seems to be the only option people can think of. Strapped of cash and their jobs, and with dues and debts mounting, a lot more people are lining up to file the Chapters on their names. No wonder, the Federal Government has been forced to sit back and take corrective actions by making new bankruptcy laws.

No one would want a bankrupt state where more than 90% individuals go bankrupt. This possibly prompted the Federal Government to bring about a change in the laws of Chapter 7.

So, what is Chapter 7 Bankruptcy all about?

Understanding Chapter 7 Bankruptcy becomes of critical essence for you. An individual filing for Chapter 7 is relieved of all his debts and financial obligations. Once an individual is declared bankrupt under Chapter 7, creditors can no longer pursue efforts to extract their dues from the individual.

What are the New Bankruptcy laws about Chapter 7?

New bankruptcy laws have changed some statutes of Chapter 7 Bankruptcy. Find below some new bankruptcy laws given for your benefit.

Restricted eligibility for filing for Chapter 7 Bankruptcy

Earlier, you could decide which chapter you would wish to file for. With the new bankruptcy laws, your monthly income would be measured against the median income of the state. You could file for Chapter 7 bankruptcy, if your income is lesser than the median income of the state.

Means Test

The objective of the Means test is to determine if you have enough money to handle your financial obligations. Your income is taken into one hand, and all other expenses are subtracted from the income. The remaining amount is compared with a standard amount that is used as a benchmark.

If the amount in your case is below the benchmark amount, you could file for Chapter 7. Chapter 7 bankruptcy essentially means liquidation, under which all your assets would be liquidated off to pay the debts of your creditors. Chapter 13 bankruptcy is repayment. The new statutes of the Federal Government of the USA strive to get a lot of people who are lining up to file for Chapter 7, to file for Chapter 13. This allows creditors to claim their monies back from the borrowers in a legal manner.

Whether Chapter 7 or Chapter 13, filing for bankruptcy is not a milestone event at all for any individual! With credit scores destroyed par recognition, it is a long and hard battle for them to lift themselves up.

You need to know all about the new bankruptcy laws before you even consider filing for bankruptcy. Visit here to find out more: http://www.creditcardbankruptcyinfo.info/New-Bankruptcy-Laws.html

Find out if you even qualify to file for bankruptcy.

Article Source: http://EzineArticles.com/?expert=Dale_P._Stewart

Tags: Bankruptcy