Tax on Gambling Activity

The tax treatment of gambling activity is regulated in Articles 219 to 247 of the Corporate Income Tax Law.

Tax on gambling activity is levied on:

1. Gambling activity of remotely organized games where the bet consists in the charge for telephone or another electronic communication service, which is regulated in Articles 235-241 CITL.

Scope of taxation

The gambling activity of remotely organized games where the bet consists in the charge for a telephone or another electronic communication service attracts a tax on gambling activity which is final.

Taxable Persons

The organizers of remotely organized games of chance where the bet consists in the charge for a telephone or another electronic communication service.

Taxable Amount

The increase in the charge for the telephone or another electronic communication service.

Rate of tax

15 per cent

Declaring of bets made and of tax

The organizer of the game of chance shall declare the bets made and the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said organizer on or before the 10th day of the month next succeeding the month of conduct of the games, by means of a return in a standard form.

The operator of the telephone or another electronic communication service shall declare the bets made and the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said operator on or before the 10th day of the month next succeeding the month of conduct of the games, by means of a return in a standard form.

Tax Remittance

The tax on gambling activity under this Section shall be withheld and remitted by the operator of the telephone or another electronic communication service on or before the 10th day of the month next succeeding the month of conduct of the games.

The operator of the telephone or another electronic communication service shall be obligated to satisfy itself that the organizer of the game of chance has obtained authorization from the State Commission on Gambling and to present to the National Revenue Agency territorial directorate the contract whereunder the said operator takes the bets, incorporating a clause on the increase in the charge for the telephone or another communication service.

2. Gambling activity of slot-machine games and gambling casinogames, which is regulated in Articles 242-247 CITL.

Scope of taxation

The gambling activity comprising slot-machine games and gambling casino games attracts a tax on gambling activity which is final.

Taxable Persons

The organizers of gambling activity comprising slot-machine games and gambling casino games.

Amount of tax

  • in respect of a slot-machine at a gambling hall and a gambling casino, respectively, each player's place there at: BGN 500 per quarter;
  • in respect of a roulette at a casino per gambling table: BGN 22,000 per quarter for each gambling table;
  • in respect of any other gambling equipment at a casino: BGN 5,000 per quarter for each gambling equipment.

Declaring the tax

The tax is declared by submitting a tax return in standard form not later than the 15th day of the month next succeeding the quarter.

The tax return shall be submitted to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person. 

Tax Remittance

The tax is remitted within the time limits for its declaring.

Under Article 242(2) the gambling activity of games on gambling machines and games at a gambling casino, organised online, shall attract corporation tax.

Tax on ancillary and auxiliary activities

Within the meaning of  § 1, item 16 of the Supplementary Provision of the Gambling Law "Ancillary and Auxiliary Activities" shall be servicing activities of gambling organisers, such as maintenance and repairs of own gambling equipment, publication, broadcasting and publishing information other than advertising and which is related to the activities, coffee bars, etc.

In pursuance of Article 241 in conjunction with Article 219 (3) of the Corporate Income Tax Law, any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Law in the case of remotely organized games of chance where the bet consists in the charge for a telephone or another electronic communication service attracts an alternative tax on the value of the said income at the rate of 12 per cent.

The tax shall be declared by an annual tax return in a standard form, which shall be submitted not later than the 31st day of March of the next succeeding year to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.

Record keeping

In pursuance of Article 219 (1) of the Corporate Income Tax Law, the taxable persons shall be obligated to keep detailed records and shall store information, which shall be sufficient for establishing their liabilities hereunder by the revenue authorities of the National Revenue Agency.

The taxable persons shall submit an annual activity report on or before the 31st day of March of the next succeeding year to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.

Sanctions

In accordance with Article 9 of the Corporate Income Tax Law, interest according to the Interest on Taxes, Fees and Other State Receivables Law shall be due on any taxes which are not remitted when due.

In accordance with the provisions of Article 261 of the Corporate Income Tax Law, any taxable person, which fails to submit a tax return under this Law, which fails to submit any such return when due, or which fails to state or misstates any particulars or circumstances leading to underassessment of the tax due or to undue reduction, retention of or exemption from tax, shall be liable to a pecuniary penalty varying between BGN 500 and BGN 3,000. Any repeated violation shall be punishable by a pecuniary penalty varying between BGN 1,000 and BGN 6,000.

According to the provision of Article 276 of the Corporate Income Tax Law, any taxable person, which fails to fulfil its obligation under Article 219 (4) (submission of an annual activity report), is liable to a pecuniary penalty of BGN 500 or exceeding this amount but not exceeding BGN 2,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 1,500 or exceeding this amount but not exceeding BGN 5,000.

In accordance with the provisions of Article 278 of the Corporate Income Tax Law, the written statements ascertaining the violations shall be drawn up by the authorities of the National Revenue Agency, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official authorized thereby. The ascertainment of violations, the issuing, appeal against and enforcement of the penalty decrees follows the procedure established by the Administrative Violations and Sanctions Law.

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