In the recent years our practice encounters several cases of incorrect tax treatment of the activity of a Consortium which may lead to negative tax consequences for this association and for the parties involved. In this regard we would like to brief you about some main tax aspects which should be observed when operating under this form of partnership.
These tax consequences mainly relate to compliance with the regulations of the Corporate Income Tax Act and the VAT Act.
Several amendments in the Bulgarian tax regulations as well as New Accountancy act have been approved by the Bulgarian Parliament at the end of 2015. These amendments are effective as of 1 January 2016 and concern mainly corporate income taxation, VAT and taxes on personal incomes.
Since the beginning of the year the monthly minimum wage has been increased from BGN 340 to BGN 360. A new increase is provided for as of 1 July 2015 – in the second half of the year the minimum wage will rise up to BGN 380.
In 2015 tax on interest income remains 8 percent. From this year on, this kind of tax shall be charged not only on interest income from term deposits, but on the interest income received from bank accounts of any kind.
The TPA Horwath Group is one of the leading tax advisory and auditing services companies in Central and South Eastern Europe.
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