ДАНЪЧНОПРАВЕН РЕЖИМ НА ЮРИДИЧЕСКИТЕ ЛИЦА С НЕСТОПАНСКА ЦЕЛ
TAXATION OF NON-PROFIT ORGANIZATIONS

Summary/Abstract: Non-profit organizations (NPOs) are among the most heavily used institutions for social, economic, cultural, and political activities in many countries. The expansion of these institutions increases their importance. In many countries the tax system includes special tax arrangements applicable to the non-profit sector only. This point is particularly valid for income tax,value added tax, and purchase tax. The significant expansion of the non-profit sector means that the tax regimes face the challenge to develop appropriate tax arrangements for the non-profit sector. This study focuses exclusively on the income tax regime, and aims to provide a comprehensive review of the main issues relating to income tax policy towards the non-profit sector in Bulgaria. Such approach allows for an examination of the various tax policy issues within the experience of various countries, with particular focus on Bulgaria, thus enriching discus¬sion at national level in both theoretical and practical aspects. The study addresses the differences in the tax regime of the NPOs acting for public benefit compared to NPOs acting in private benefit, and pays particular attention to the existing taxation of the NPOs as well as of the sponsors to such NPOs and their consequent tax benefits. The study provides com¬ments on certain controversial provisions within the various pieces of tax legislation, towards the setting of the criteria towards tax exemption of the NPOs and, accordingly, suggests future amendments to the law.

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