The National Revenue Agency (NRA) announced that it is launching inspections of companies whose subject-matter is the sale of cryptocurrency.

The objective is to establish whether companies and their clients comply with tax and social security legislation.

Taxpayers will also investigate the principle of operating the platforms for the purchase and sale of such assets.

According to the NRA, as transactions related to trading in virtual currencies are anonymous, there is a risk of revenue concealment and non-payment of taxes.

A survey was conducted by the Revenue Agency on Bulgarian companies that own websites for the purchase and sale of cryptocurrency and have already assigned control actions to 9 companies.

Once the checks are completed, the tax authorities will analyze the information gathered for customers on these platforms to determine whether they have declared their income from their transactions.

Individuals' incomes from the sale or exchange of virtual currency are declared in the annual tax return and are taxed on the total annual tax base (10%), reminded the NRA. For the purpose of tax treatment, income from the sale of the currency is treated as income from the sale of a financial asset. The profits earned by companies from this activity are also subject to taxation under the Corporate Income Tax Act.

The deadline for filing annual income tax returns for natural persons acquired in 2018 expires on 30 April. Within the same period, the due tax is payable. The deadline for companies to submit annual corporate tax returns is March 31st.

More information on the declaration and payment of income from cryptocurrency to NRA clients can be obtained from the NRA Information Center on 0700 18 700.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!