Tax delays in a state of emergency
What is the term to fulfill the obligation of submitting declarations and paying taxes?
With the Measures and Actions during the State of Emergency Act, the government introduced changes in the deadlines for submitting annual tax declarations and paying taxes under Corporate Income Tax Act and Income Taxes on Natural Persons Act. The terms that are changing are:
- The deadline for filing the annual tax declarations and paying the corporate tax –extended to June 30, 2020.
- Corporate tax advance payments – must be done under the following conditions:
- If the annual tax return has been submitted before the entry into force of the Act, the advance payments shall be made in the amount as declared, and, if necessary, a corrective declaration can be submitted;
- If the annual tax return has been submitted until April 15, 2020, the advance payments shall be made in the amount as declared;
- If until April 15, 2020 the annual tax return has not been submitted, the advance payments must be declared in the annual tax return template until April 15, 2020; only the part thereof should be filled in, related to the advance payments for the current year.
- The deadline for declaring and paying the tax on the costs under the Corporate Income Tax Act, the tax on the income of ancillary and auxiliary activities within the meaning of the Gambling Act and the tax on the activity of operating ships – extended to June 30, 2020.
- The deadline for submitting the annual declaration for the income tax to natural persons engaged in business activities as traders within the meaning of the Commercial Act, incl. sole proprietors and farmers, when they choose to be taxed as sole proprietors, as well as the payment of the tax due – extended to June 30, 2020.
All other deadlines which are not explicitly amended by the new Act remain unchanged. For example, the deadline for submitting an annual tax return and paying the tax from natural persons, who are not sole proprietors, remains April 30, 2020.
In accordance with these changes, the deadlines for publication under the Accounting Act have been extended: the companies should publish the annual financial statements, the consolidated financial statements and the annual reports by September 30, 2020. At the same term all enterprises that did not operate during the reporting period must submit declarations as well.
Can the State initiate forcedly execution under the Tax and Social-Insurance Procedure Code during the state of emergency?
With the Act the government has taken measures to limit the possibility of initiating forcedly execution under the Tax and Social-Insurance Procedure Code. As long as the country is in the state of emergency, there won’t be enforcement proceedings for not paying the taxes. There are also exceptions, such as the need to protect particularly public interests.
Detailed information for the hypotheses of suspension of forcedly execution, deadlines for applying discounts on prepayment/extra payment, the possibilities for deferral and rescheduling of obligations can be found in Bulgarian language here.