The course "Corporate Finance"
"Practice and legal aspects of corporate taxation in Bulgaria"
Prepared by: Checked:
Louisa Georgieva Ketipova hon.as.Ivan Kostov
Stream 125, Group 1235
factor. № 10113032
Under review are practical and legal aspects of the Corporate Income Tax. Subject to review focuses on the analysis of these legal aspects. These frames this subject objectively coursework argue that the main aspects of corporate tax in Bulgaria are defined in our Corporate Income Tax (CIT) Law on Value Added Tax (VAT) and Tax-Insurance Procedure Code (TIPC) . Purpose of the course work is tracking the impact of corporate income tax and analyzing the situation of tax legislation by legal aspekti.Za to achieve this goal, a few basic tasks: • consideration of the corporate income tax from a theoretical standpoint to clarify the essence; • Analysis of existing legislation in the country to tax corporate profits / income /; • displaying the main conclusions and making recommendations
Nature of Income Tax
The tax is nonrefundable and free (no direct counterpart tax) payment imposed unilaterally by a general form of state budget revenue element, which together with other revenue is allocated to meet public needs. A certain group of objects or persons (real estate, vehicles, income etc..) And in the absence of voluntary payment is collected from the property of forced taxpayers. In modern tax system objects of taxation are mainly three - property, income and revs / goods and services /. As in the past, income taxes on a mass scale are implemented, direct taxes are represented by such property. Nowadays fiscal importance of property taxes is negligible so that it can be said that direct taxes today are mostly from income taxes. Typical for income taxes is that they are subject and on oblaganerealizirani or acquired income. With the development of commodity-money relations income, becomes a sign of economic strength and solvency. Therefore taxation redirected its main attention to the income from the property, because that income is the most appropriate ¬-based taxation.
Taxable persons are:
1. Local entities;
2.Chuzhdestrannite entities doing business in Bulgaria through a permanent establishment, disposition of property made in a place of business or receive income from a source in Bulgaria; 3.Ednolichnite traders and individuals registered as tobacco producers and farmers to determine taxable income in accordance with Art. 26 of the Law on Income Tax of Individuals - Tax withholding in cases specified in the Law on Income Tax of Individuals; 4. individuals - entrepreneurs within the meaning of Art. 1, para. 3 of the Commercial Law - in the cases specified in the Law on Income Tax of Individuals; 5. employers and clients under management and control - the tax on social costs provided for in Part Four. For the purposes of this Act unincorporated associations and insurance funds, established pursuant to art. 8 of the Social Security Code shall be treated as legal persons. For the purposes of taxation of income from a source in Bulgaria taxable person is any foreign organizationally and economically distinct entity (trust fund, etc.), which independently carries on business or performs and manages investments where it can not determine the owner income. Legal residents
Local entities are:
1. Legal entities established under Bulgarian law;
2. Companies incorporated under Council Regulation (EC) № 2157/2001 of the Council and cooperatives established under Regulation (EC) № 1435/2003 of the Council when they are established in the country and have entered into a Bulgarian register. Local entities are taxed under this law for profits and income from all sources in Bulgaria and abroad.
Foreign legal entities
Foreign entities are those that are not local.
Foreign legal entities are subject to tax under this Act for...
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