National Revenue Agency of Bulgaria Updates Taxpayer Categorization Criteria

As of January 1, 2024, Bulgaria’s National Revenue Agency (NRA) has implemented significant changes to the categorization of large and medium-sized taxpayers. This update includes the establishment of a new territorial directorate called “Medium Taxpayers and Insurers,” which aims to enhance oversight and support for entities contributing significantly to the national budget.

Key Changes in Taxpayer Categorization

1. Revised Criteria for Large Taxpayers and Insurers

Previously, companies were classified as “large taxpayers and insurers” if they contributed over BGN 3 million to the budget. The last update to this list was in 2017. Under the new criteria, the threshold has been raised:

As a result of these revised criteria, approximately 1,350 companies now fall under the Territorial Directorate “Large Taxpayers and Insurers” (TD GDO).

2. Introduction of Medium Taxpayers and Insurers

A new category for “medium taxpayers and insurers” has been introduced, with the following criteria:

More than 3,300 companies will be classified as “medium taxpayers and insurers” and will be notified of this change by the NRA.

Automatic Re-registration and Notification

The re-registration of companies into the new territorial directorate, as well as the inclusion of new qualifying companies, will be done automatically by the NRA. This process ensures a seamless transition and compliance with the updated criteria

Objectives of the New Directorate

The establishment of the “Medium Taxpayers and Insurers” directorate is a strategic move by the NRA to:

  • Enhance the focus on entities that contribute significantly to the national budget.
  • Ensure ongoing monitoring and control of medium-sized taxpayers and insurers.
  • Provide better support and oversight to a broader range of companies.

To conclude with, this initiative reflects the NRA’s commitment to maintaining a fair and efficient tax system, promoting compliance, and supporting Bulgaria’s economic stability. Companies falling under the new categories can expect enhanced oversight and a streamlined process for compliance.

Eurofast team stays abreast of recent changes affecting businesses. If this information has triggered your attention and you need more details, please write to our experts in Bulgaria at sofia@eutofast.eu.

Hristova Polya Eurofast

Polya Hristova
Accountant
Eurofast Sofia
sofia@eurofast.eu