Income from trading on the stock exchange

Income from trading on the stock exchange

Question:

My case is the following - I have income from the stock exchange. I am a natural person and I have bought shares from a company worth 5000 leva. From my bank account in Bulgaria, I transferred the amount to a bank account in the United States that is linked to the trading platform of the stock exchange.
By the end of this year I do not intend to sell them. Do I need to describe them in my tax return for 2018 in Annex 8 or other?
Hypothetically, in 2020 I have income from trading on the stock exchange, selling 5,000 leva in 2018 for 10000 leva. I transfer them back to my Bulgarian account. How much tax (related to this sale only) will I owe for the tax year 2020?  And last option - if I sell the same shares for 1000 BGN? 

Answer:

Hello,

On the right track, you are thinking about declaring income from trading on the stock exchange. The shares you purchased in 2018 will have to declare, as you have noted, in Annex 8 to the GTD, Section I.

In the year you sell them, you will need to replenish Annex 8 but Section V. If you sold them at a higher price than you would have to pay tax on the realized income (sale value minus acquisition cost) at the rate for the tax applicable in the year of income acquisition. If you sold them at a lower value than the one you acquired, you did not earn income and you do not owe tax.

We hope we have been useful.

Bets regards.