Bulgaria Tax On Insurance Premiums : minfin.bg

Organization : Ministry of Finance
Facility : Tax On Insurance Premiums
Country : Bulgaria
Website : https://www.minfin.bg/en/772

What is Bulgaria Tax On Insurance Premiums?

The taxation regime for insurance premiums is regulated in the Tax on Insurance Premiums Law. Insurance premiums under taxable insurance contracts, the risks of which are assumed by insurers, shall be subject to tax. No tax shall be levied on insurance premiums under reinsurance and retrocession contracts, life Insurance and annuities, marriage and birth insurance, life insurance linked to an investment fund, permanent health insurance, capital redemption, supplementary insurance, cargo in transit, insurance of aircraft and vessels, and third party liability for the possession and use of aircraft and vessels, cargo in transit insurance.

Related / Similar Facility : Bulgaria Immovable Property Tax

Taxable Persons of Insurance Premiums

Taxable persons shall be:
** Insurers registered as a joint-stock company, a co-operative society or an insurer from a third state through a branch registered under the Commerce Law, which has received a licence under the terms, conditions, and procedure specified in the Insurance Code.
** Insurers from another member state under the conditions of the right of establishment or of the freedom to provide services.
** Tax representatives – in the events where such tax representatives have been determined in accordance with the procedure specified in the Law.

Event of Bulgaria Tax On Insurance Premiums

A tax event shall be the receipt of an insurance premium by an insurer under a concluded taxable insurance contract, and in the event of instalment payment of the insurance premium each receipt of part of the insurance premium shall be regarded as a separate tax event. A tax event shall occur on the date on which the insurer receives the insurance premium. The tax shall become payable on the date on which the tax event has occurred.

Taxable Amount of Insurance Premiums

The tax base shall be the insurance premium, received by the insurer under the taxable insurance contract. In the event of instalment payment of the insurance premium the tax base shall be the part of the insurance premium received by the insurer.

The tax base shall be increased with the bonuses and rebates reimbursed to the insurer under taxable insurance contracts. The bonuses and rebates granted from the insurance premium shall not be included in the tax base where they have been granted to the insured person with the payment of the insurance premium.

Rate of Bulgaria Tax On Insurance Premiums

** The tax rate shall be 2 per cent.
** Calculation of the Amount of Tax
** The amount of tax shall be calculated by multiplying the tax base by the tax rate.

Period of Bulgaria Tax On Insurance Premiums

** The tax period for assessing the tax payable shall be the calendar month.
** Tax Payable for the Tax Period
** The tax payable for the tax period shall be the difference between the total amount of the tax subject to payment by the insurer for the tax period and the total amount of the tax on the insurance premiums refunded during the same tax period.
** The total amount of the tax on the insurance premiums refunded during the same tax period shall be determined by multiplying the amount of the already taxed insurance premiums, which have been refunded during the corresponding tax period, by 2%.

Declaring the Bulgaria Tax On Insurance Premiums

** Insurers shall submit tax returns in a standard form for the previous calendar quarter by the end of the month following this quarter to the territorial directorate of the National Revenue Agency in which they are registered.

** Tax representatives and insurers from another member state working under the conditions of freedom to provide services shall also submit only once a tax return in a standard form for the first tax period for which tax is owed by the end of the following month.

Remittance of Bulgaria Tax On Insurance Premiums

The tax payable for the tax period shall be paid by insurers every month, by the end of the following month to the executive budget into the account of the territorial directorate of the National Revenue Agency in which they are registered.