These factors have led to the destruction of the common misconception that personal income tax is only about preparation of tax returns and calculation of monthly tax liabilities on salary payments. Meeting compliance obligations is of course the primary target of companies but a more effective and efficient method may be sought by:
- Outsourcing this function (payroll and tax return preparation) to an experienced outside provider who has the capacity to ensure full and timely compliance with the local legislation, while allowing for the possibility to for the company to achieve efficiency and effectiveness and/or optimizing costs or
- Revisiting the current remuneration/benefit structure in order to target optimization.
Where international assignments are in place a more comprehensive approach is sought for ensuring that the inbound or outbound expatriate is fully aware of his situation in the country even before his/her assignment has started by organizing pre-departure and post-arrival meetings, giving access to technology tools providing the easy and user-friendly way for information collection purposes, taking care of correspondence with the authorities. Thus, expatriates have the confidence that their obligations are timely and accurately met, while companies ensure employee compliance with the legislation and at the same time build an image of a caring and supportive employer.
Globalization on the other hand has also raised other important issues with potentially complicated local implications for both companies and their employees such as secondments and bilateral and EU social security cross-border cases.
How can we be of assistance to you or your business?
We have the knowledge, the people, experience and technology to assist in all personal income tax and social security matters you may face both locally or internationally. Our world-wide network of member firms is a significant advantage to ensuring that you or your business are able to observe the international perspective/effects from your activities.
As part of our service portfolio we offer to assist you with the following:
- Developing appropriate structures for both local and expatriate/employee remuneration packages in terms of tax and insurance installments
- Analysis and enhancement of existing remuneration systems
- Management of Bulgarian payroll compliance for local employees and expatriates
- Provision of investment advice leading to tax burden reduction
- Assistance with the preparation of personal income tax returns and issuance of the respective certificates
- Assistance with determining Bulgarian personal income tax and the insurance status of expatriates
- Payroll review of an entity’s compliance with the personal income tax and social security legislation
- Assistance with the drafting of appeals to tax and insurance assessment acts
- Reviewing of mobility policies for entities planning on expanding abroad and needing a manual to explain a company‘s expatriate policies and benefit packages depending on the type of assignment
- Drafting/reviewing secondment agreements
- Training courses for key personnel for the purpose of clarifying the changes in the local and international (EU) personal income tax and social security legislation
What your benefit would be?
At KPMG, we pride ourselves not only on the in-depth knowledge of our firm's tax professionals, but also on the ability of our people to think beyond and be proactive. Thus, by choosing us as your service provider we believe we can assist towards achieving the following benefits for you and/or your business:
- Cost savings in many key IES related areas
- Assistance with many of the administrative issues related to assignments
- A wide range of services – personal income tax, social security and pension planning from a local and international perspective
- Creation of opportunities rather than problems. The efficient management of global compliance
- Use of technology to achieve greater efficiency in assignment planning