There are new rules for making advance installments as per amendments of Corporate Income Tax Act as of 2013. According to Corporate Income Tax Act some legal entities are obliged to make advance installments of corporate tax. Whether an entity falls within this obligation depends on the net revenues of the previous year. In case the net revenues for 2012 are below BGN 300 000, advance installments are not due, for net revenues between BGN 300 000 and BGN 3 000 000 advance payments are due on quarterly basis and in case the revenues go above BGN 3 000 000, the advance installments must be on monthly basis.

The new amendments here provide that the amount of the advance installments will be calculated on the basis of the forecast for the expected tax profit for the current year. However, there are no specific guidelines on how this forecast shall be made, so entities are relatively free to determine the advance payments as per their discretion.

Furthermore, tax payers have the option to adjust their advance payments upwards and downwards during the year depending on changes in their forecast. If the total amount of advance payments made on an annual basis is 20 % lower that the annual final tax due, there will be interest implied of course, but in any case this is more-liberal than previous regulations where only 10 % difference was  allowed without interest.

The deadlines for making the advance installments have also been changed. They are as follows: In case monthly installments are applicable, the deadline is the 15^th day of the current month. In case quarterly installments are due the payments should match the following deadlines: for the first two quarters – the 15^th day of the month following the respective quarter, for the third quarter – 15^th of December.