Bulgaria’s revenue agency launched checks in cryptocurrency trading companies

Bulgaria’s National Revenue Agency (NRA) is launching inspections of companies that trade cryptocurrency, NRA reported on 14^th of January.

The objective is to identify whether the companies and their clients comply with tax and social security legislation. According to NRA, because the transactions in virtual currencies are anonymous, there is a risk to hide income and avoid payment of taxes.

The NRA reminds that the incomes of indivuduals from the sale or exchange of virtual currency should be included in the annual tax returns and are subject to 10% tax on the total annual tax base.

Income from the sale of the currency is treated as income from the sale of a financial asset. The profits earned by companies from this activity are also subject to taxation under the Corporate Income Tax Act.