Bulgarian government mulls one-time 33% tax on excess profits
- Thread starter Bill D
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A poor EU country with low corporate tax has budget issues. Now needs to rob the populous one time or go cap in hand to the IMF they say. IMF will say raise corporate taxes, lower government spending, cut pensions etc etc.
Good luck to them whatever they decide is best way forward.
Good luck to them whatever they decide is best way forward.
If introduced it will probably affect only few and I doubt it will solve their budget deficit issue:
The question is whether and how it will be calculated for entities that haven't filed a tax return in the 5 previous years.
https://www.mediapool.bg/mf-33-dana...vsichki-firmi-ili-zaem-ot-mvf-news345812.htmlAnd it is interesting that the country with︀ the 2nd lowest debt to gdp ratio in the EU (23%) has problems to raise︁ new debt while countries with much more excessive debt to gdp (>100%) can run much︂ higher fiscal deficits.
I guess it is now likely that they will raise the general︃ corporate tax rate to catch up with Romania.
The question is whether and how it will be calculated for entities that haven't filed a tax return in the 5 previous years.
https://www.mediapool.bg/mf-33-dana...vsichki-firmi-ili-zaem-ot-mvf-news345812.htmlAnd it is interesting that the country with︀ the 2nd lowest debt to gdp ratio in the EU (23%) has problems to raise︁ new debt while countries with much more excessive debt to gdp (>100%) can run much︂ higher fiscal deficits.
I guess it is now likely that they will raise the general︃ corporate tax rate to catch up with Romania.
Yes good question the calculation needs 2019 2020 2021 and 2022, if I understood it should add a tax of 33% on excess profits of 2022 compared to 120%*weighted average 2019..2021
Either it would mention exemption for startups either it would take the average on the years where the company exists
It would mean a marginal tax of 43%︀ on these profits as there is already the 10CT
I Thought that it was not︁ possible to retroactively raise tax there, that the tax for the fiscal year of 2023︂ were already set as not having been modified before 31st december 2022 (was told it︃ by an accountant)
However it is really surprising to see they could retroactively tax year︄ not only 2023 (current exercice) but also 2022 !?!
It seems really dangerous if they︅ can decide after wards to tax you 43%
It seems everyone would be targetted, from︆ the shop selling pizza to the bank
Either it would mention exemption for startups either it would take the average on the years where the company exists
It would mean a marginal tax of 43%︀ on these profits as there is already the 10CT
I Thought that it was not︁ possible to retroactively raise tax there, that the tax for the fiscal year of 2023︂ were already set as not having been modified before 31st december 2022 (was told it︃ by an accountant)
However it is really surprising to see they could retroactively tax year︄ not only 2023 (current exercice) but also 2022 !?!
It seems really dangerous if they︅ can decide after wards to tax you 43%
It seems everyone would be targetted, from︆ the shop selling pizza to the bank
https://www.minfin.bg/bg/legislation7/442
here is the law text, who does that apply to exactly ? Companies, self employed, sole traders, individuals (salary/capital gains) ?
@algotrader appearently new companies would be affected and it would be calculated as an average from year of creation until 2021
(i guess new 2022 +2023 company not affected?)
https://www.capital.bg/politika_i_i...nite_danuchi_promeni_svurhpechalbata_shte_se/IN this article they mention it would affect profits from july︁ to december 2023 only
However 2022 would be used to calculate prepayments only, so I︂ dont understand, is it retroactiv or not
here is the law text, who does that apply to exactly ? Companies, self employed, sole traders, individuals (salary/capital gains) ?
@algotrader appearently new companies would be affected and it would be calculated as an average from year of creation until 2021
(i guess new 2022 +2023 company not affected?)
https://www.capital.bg/politika_i_i...nite_danuchi_promeni_svurhpechalbata_shte_se/IN this article they mention it would affect profits from july︁ to december 2023 only
However 2022 would be used to calculate prepayments only, so I︂ dont understand, is it retroactiv or not
This is not gonna happen. The chance for them to accept the law is under 1%.
Bulgaria is in an everlasting round of new elections, all politicians must present themselves in a nice light as they know the next elections are in a few months. The top 2 parties said they are not gonna vote for that law.
Bulgaria is in an everlasting round of new elections, all politicians must present themselves in a nice light as they know the next elections are in a few months. The top 2 parties said they are not gonna vote for that law.
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