Foreign Exchange Rates
|Currency||Code||Per unit of currency||Levs
Bulgarian company mediates between Danish and Dutch company in the construction of greenhouses on the territory of Denmark. The Bulgarian company receives a commission from the Dutch company. The Bulgarian company has an office in Bulgaria, consisted of technical assistant and an employed manager. The owner of the company lives in Denmark and has been there for more than half a year. My question is: Since the benefits of the business are taxed in Bulgaria, is it possible these income be taxed in Denmark as well, if it is reckoned that there is a business activity in Denmark as well, because of the greenhouses.
Will the owner pay a dividend tax while distributing his profits in Denmark?
Pursuant to item 5 of the Supplementary Provisions of the Supplementary Prospectus, "Place of business" is:
(A) a designated place (owned, hired or otherwise used) through which a foreign person carries out all or part of a business activity in the country, such as: a place of management; Branch; а commercial representation registered in the country; office; chamber; workshop; factory; Shop; warehouse; service station; installation entity; construction site; mine; quarry; probe; oil or gas well; source or other object of extraction of natural resources;
(B) Carrying out of activity in the country by persons authorized to conclude contracts on behalf of foreign persons, except for the activity of the representatives with independent status under Chapter 6 of the Commerce Act;
(C) The prolonged commercial transactions with a place of performance in the country, even if the foreign person has no permanent representative or place.
These provisions concern foreign persons on the territory of the Republic of Bulgaria. If we assume that your EU regulations are synchronized then you are a representative with an independent status, according to Chapter 6 of the CA and under the contract for commission services, there is no justification for taxing these commissions in Netherlands. In any case, we advise you to contact the tax authorities in Netherlands.
Тhe distribution of dividends.
Dividend income is taxed in accordance with Article 38, Paragraphs 1 and 2 of the APIA with a final tax. A request for issuance of a certificate shall be filed in accordance with Article 58 of the TIDAA. For the declaration and taxation of the dividend income of the individual in Denmark, the provisions of local law apply. We advise you to contact the tax authorities in the Netherlands.
A 500 Euros shipping service has been done from Bulgaria to Germany. The recipient of the service is company X from Ukraine. Please specify the basis for accrual or non-charging VAT for the billing of this service and the cell of the VAT Declaration to which it should be assigned.
Forwarding services are regulated in Article 22 (4) and (5) of the VAT Act. Pursuant to Article 22, paragraph 4, the forwarding, courier and postal services, other than the services under Art. 49 in relation to the transport of goods within or outside the European Union are treated as goods transport services in the European Union, respectively for the transport of goods outside the European Union. In your Question, you have not indicated the most important thing whether the recipient of the service / company from Ukraine / is a taxable person or not.
If the recipient of the service is NOT a taxable person.
Pursuant to Article 22, paragraph 1, the place of performance in case of supply of a transport service within the European Union to a non-taxable person is on the territory of the Member State where transport begins. If the transport starts in Bulgaria, then the place of performance is in Bulgaria and you have to charge 20% VAT.
If the recipient is a taxable person
If the company in Ukraine is a taxable one then the provisions of Article 22, paragraph 3, according to which the place of performance in the case of a supply of a service for the transport of goods within or outside the European Union provided to a taxable person is determined in accordance with Art. 21, para. 2. Pursuant to Article 21 (2), the place of performance in the case of a supply of a service where the recipient is a taxable person is the place where the recipient has established his independent economic activity. Where such services are provided to a permanent establishment situated in a place other than that in which the recipient has established his independent economic activity, the place of performance shall be the place where that object is situated. Where there is no place to establish an independent economic activity or a permanent establishment, the place of performance of the supply is the place of residence or the actual residence of the recipient. Therefore, the place of performance is determined by where your customer's independent business activity has been established. If they meet the criteria to be taxable , according to the Regulation from 01.07.2011, then the place of performance is in the territory of Ukraine and 0% VAT is charged.
A taxable company from Bulgaria receives an invoice for a commission service from a third country / not in the EU / for the export of goods for the month to a third company / not in the EU /. How to proceed with the invoice? Being self-employed under VATAs by including it in purchases and sales with a protocol or including it only in purchases as an invoice without VAT?
Following the changes to the VAT Act into force from January 1, 2010, the taxable recipient will self-assess VAT in all cases of services received, when the following conditions are simultaneously met:
* The provider is a taxable person, not established in Bulgaria, whether established in another EU Member State or in a third country.
* The service has a place of performance in Bulgaria. Considering the general principle of determining the place of performance of services with a taxable recipient (where the recipient is established), in almost all cases the place of performance of the service will be determined by the order of Art. 21, para. 2 of the VAT Act and is in Bulgaria, i.e. there will be an obligation for a self-regulation.
* The service is taxable, whether with 20% VAT or 0% VAT.
I have registered a LTD company and I would like to know, can an accountant be hired on a civil contract or should he be employed? As a manager of a transport company, is it obligatory to have a Management and control contract? If I am insured at another place on an 8-hour business day as a manager in my company, how should I be insured if at the other job I am insured at the maximum wage as a Manager?
The first question: You can appoint an accountant both on a labor contract and on a civil contract depending on how he will perform his duties in the company - every day, certain days / hours of the month, or he will receive a fee for the amount of work done.
Second Question: If you have a registered Management and control contract in a Commercial Register with a specified remuneration, I advise you to have a payback under this contract. Naturally, once you have reached the maximum insurance threshold at another employment contract, you have no obligation to be insured at your company. However, there is an obligation to deduct and pay tax on the received income under the Personal Tax Act.
А LTD with headquarters and business address in Bulgaria. The two partners are Italian citizens, but have PINs in Bulgaria. One of the partners has a temporary resident status in the country. Both were employed under MMC. The company operates entirely in Italy, i.e аll revenues are from services rendered there. Should the two partners be ensured under the Bulgarian or the Italian legislation?
Once a partner has the status of a temporary resident in the country, he must be insured under the Bulgarian law. The company is a Bulgarian legal person and carries out its commercial activity in Bulgaria, therefore the personnel must be insured under the Bulgarian legislation. The second manager, who is not a temporary resident, will be subject to a final tax under the Personal Tax Act.