Features in Taxation and Accounting of Real Estate in Bulgaria
Abstract
Real estate business is a main income generator and one of the leading drivers for the progressive development of the Bulgarian economy. The interest in it is increasing not only from the point of view of the transactions (real estate purchase and sale or renting out) but also from the view of the tax effect of their realization. The growing trend of proceeds from sales or rental of real estate and increase in the realized transactions with sold or rented real properties over the last three years is sufficient evidence for the development of this industry of the Bulgarian economy. On the basis of the information resulting from the profitability analysis from the realized transactions with sold or rented real properties, the financial management of the state may make correct and justified decisions from the point of view of the fisc in relation to real estate taxation for the purpose of enhancing the efficiency in this industry of the economy of Bulgaria.
This article discusses income taxation of enterprises and individuals received from the three types of real estate transactions and accounting of the real estate by the enterprises through the prism of the European Directives, International Financial Reporting Standards/ International Accounting Standards (IFRS/IAS), of the underlying tax laws of Bulgaria and the National (Domestic) Accounting law.
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