The process of company tax management in Bulgaria

The process of tax planning and also tax management is quite complicated one and this is valid for Bulgaria as well. There are plenty of changes in the law on taxes and they have to be tracked down carefully by all people who decide to register a company in Bulgaria, pay company taxes here and operate one’s business. This is not easy, as with each new year that comes, the changes in the Bulgarian tax law are becoming more complex. The good point here is that in year 2013, there will be many positive changes as far as taxes are concerned. New directives will be adopted by the European Union, which will concern the process of invoicing. A new invoice will also be introduces, which will have less data and will simplify the accounting operations. In addition will be introduced the so called “Summary Invoice”, which will be issued once a month and will include several supplies made through that period. Certain changes to the better will also concern the online invoices. These changes in the tax system in Bulgaria will set the base for other changes to be made in the future, until the administration in Bulgaria and the tax system of the country make it quite attractive to the investors.

All companies which are registered in Bulgaria and operate in the city of Sofia or other major cities in the country have to obey the Bulgarian Law, but also they have to keep up with the changes in the European Law, since Bulgaria is a member of the European Union. When taxes are concerned, we have tax management and tax planning, we have also tax forecasting, tax budgeting and VAT tax return, etc. As all managers of big companies know, just like the ones of the companies registered in Bulgaria, the process of tax management is really important part of the accounting of the company and its financial activity, its investments and profit. That is why it is quite a complicated process. The tax accounting services include tax documentation and tax rate modeling, tax account analysis and tax assistance, as well as income tax forecasting. Other useful services include tax compliance, which includes analysis of data, filling of documents and evaluation of the tax returns. Tax management for companies that are registered in Bulgaria could also include tax planning, where the aim is to reduce the tax liability, to control the risk from tax credits and increase the cash flow. Registered companies can also use the VAT tax services, which include VAT tax documentation preparation, VAT tax return and VAT bookkeeping. If they own a property like an office for example, or a car, companies should also have information on the immovable and movable property taxation. There are taxes on buying and selling of properties, there are local property taxes, etc. The good accounting offices can help the outsourcing and other companies in Bulgaria to use all credits and deductions available in order to minimize the tax liability that is due. Besides taxes, companies registered in Bulgaria should also pay national insurance that depends on the status of the people the company employs.