Freelancer's Annual Tax Return

Freelancer's Annual Tax Return

 

Question:
Hello!

I have been developing a freelance activity (IT services) for several months. I work remotely with clients from all over the country, and the payment for the services is made by money transfer through the forwarding companies. At the moment I have generated a small amount for which I want to pay tax.

As far as I understand, I do not owe insurance, but only 10% income tax, if my monthly income does not exceed the minimum wage - this is my case.

What tax do I owe? Which annex to the tax return should I fill in?

Is it enough to attach to it a reference from the forwarding company for the received postal money orders to prove the income?

Thanks in advance!

 

Answer:

Hello,

If you have received income from Bulgarian companies, they should have declared this circumstance (any company that pays income to an individual should submit the relevant declarations). If we assume that this is complied with, then after 01.03 you will be able to fill in your tax return online (with an electronic signature or PIC from the NRA), as all information about the income you have earned from Bulgarian companies will be filled in automatically and you will need just confirm it. If the above is not a fact, then you can fill in these data yourself in Annex 3 to the annual tax return. The tax you will pay is 10% calculated on the amount of the income you have earned, deducted by 25% of legally recognized expenses.

We hope we have been helpful to you.

Greetings!