The General taxation Submission Options for You Now

The general rule in flat taxation, such as the Bulgarian one, is that there are almost no exceptions. All received income is taxed. For the time being, the only exception is the profit from trading in European stocks. All realized income from P2P platforms is subject to taxation and must be declared. They are basically three groups:

  • Interest received, late fees and arrears, if any
  • Capital gains realized from trading on the secondary market
  • Bonuses received from the P2P platform

Interest and fee income

All interest and late payment of interest and late payment must be declared and taxes payable on it. Different P2P platforms may calculate the amount of taxable interest differently. A detailed description of how exactly they do it in clear is given in this article.

If you do not want to go into details, it is best to use the values ​​indicated in the statement of income. Almost all platforms offer such. This has recently been the case for Ivo as well. For the second year in a row, Clear has been sending an email to its investors about the realized income. Such references are also available on other popular P2P platforms such as Mentos and Bandura.

If you happen to use a platform that does not provide a special income statement, you can get a statement of interest and fees paid, if any. The reference should be for the period from 01.01.2018 to 31.12.2020.

Income from capital gains

If you have not traded on the secondary market, you cannot have capital gains. These are realized only if you trade on the secondary market and buy loans at a discount or sell them at a premium. The sum of the discount and the mark-up is a real capital gain. You have the right to reduce the capital gains with the realized capital losses. They are formed by selling loans at a discount or buying loans above their face value.

There are some subtle moments in reporting capital gains, but I recommend that you just fill in what the P2P platform report shows you. It is unlikely that any tax inspector will go into detail how exactly this amount is calculated. He is even less likely to be able to prove it wrong. If you are still curious about the calculation possibilities, you can read exactly how they do it in clear. You should count the Estimate tax refund  also.

Income from bonuses

Many P2P platforms offer different types of bonuses, which are actually an additional profit for investors and should be declared. Such bonuses are, for example, the bonus of up to $ 180 for new investors in Ivo, the bonus of 1% cash back for 90 days from Mentos or the bonus of € 5 for new investors in Bandura. If you have invited friends and received bonuses for this, you must also declare them.