PAYMENT OF DIVIDEND

 


PAYMENT OF DIVIDEND

The tax base and the time limits for payment of the tax withheld at source for income from dividends paid to local natural persons

The general assembly of the company makes decisions on the distribution of profit and for its payment in the form of dividend pursuant to Art. 137, para. 1 of the Commercial Law /CL/.

Income from dividends and liquidation shares in favour of local natural persons from a source in Bulgaria is subject to final tax pursuant to Art. 197 of the Corporate Income Tax Act.

Tax is calculated on the basis of the gross amount, which is determined by the decision for distribution of dividend.

Tax shall be paid pursuant to Art. 202 of the Corporate Income Tax Act and the deadline for payment is the end of the month following the month of accrual of income.

The enterprises which have paid income provide a statement for the income paid to natural persons during the year - /Art. 73 of the Income Taxes on Natural Persons Act/.

The statement shall be filed in the National Revenue Agency by 30 April of the following year - /Art. 73 of the Income Taxes on Natural Persons Act/.

The natural person recipient of the dividend shall not file an annual tax return.

In the event of allocation of a dividend from one legal entity to another, tax shall not be withheld. Tax shall be withheld only when paying dividend to a natural person.

The annual financial statement published at the Registry Agency shall state the fact of payment of a dividend in the protocol for the acceptance of Report of the General Assembly of the company.

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