ACCOUNTING SERVICES BULGARIA
How can farmers reduce with up to 60% the corporate tax?
May 18, 2015, 1:41 p.m.
European Commission approved state aid scheme, aimed at investment incentive for farmers by remise a part of the corporate tax. The relief applies from 2010.
The tax relief is intended to stimulate investment in new buildings, agricultural machinery for the production of raw and processed animal and vegetable products. Up to 60% of the corporation tax due can not be paid by farmers. This requires farmers to invest in these assets by the end of the year following the year for which the tax was retained. The maximum amount of tax retained must not exceed 50% of the assets value. The assets must be acquired at market prices.
To take advantage of the assistance, farmers need to continue to work at least three years after the discount.
Recipients of the assistance could be legal entities and sole proprietorships, which are not taxable.