The National Revenue Agency (NRA) of Bulgaria has identified 962 individuals who failed to declare income generated through an online adult content platform between 2018 and early 2023. The agency has issued notifications urging these individuals to report their earnings within two weeks of receiving an official email.
According to data provided by the platform’s managing company, Bulgarian citizens earned a total of 14 million leva from content shared on the platform over the five-year period. A significant portion of this revenue—8.5 million leva—was generated by just 20 individuals between 2020 and the first quarter of 2023.
The platform enables creators to earn income by sharing photos and videos with subscribers for a fee, retaining 80% of the subscription revenue while the platform itself takes a 20% cut. The NRA’s action signals its intent to ensure compliance with tax laws and close gaps in income reporting from digital and non-traditional sources.
Income Declaration Requirements
The NRA has specified that individuals who earned money through the platform must report their income under Bulgarian tax regulations. Earnings can be declared in two categories:
- Appendix No. 2: For income derived from business activities as a sole trader.
- Appendix No. 3: For income from other activities, such as royalties.
To comply, individuals can submit their declarations online via the NRA’s Electronic Service for Filing an Annual Tax Declaration under Article 50 of the Personal Income Tax Act. Access to the portal requires a Personal Identification Code (PIK) or a Qualified Electronic Signature (QES), both available through the NRA’s e-Portal.
Support for Taxpayers
For those who lack a PIK, the code can be obtained quickly and free of charge from any NRA office. To assist taxpayers, the NRA has made detailed instructions available on its official website, outlining the procedures for filing tax and social security declarations, as well as payment methods.
Additionally, the NRA operates support hotlines at 0700 18 700 and 02/9859 6801, offering guidance at rates based on the caller’s operator tariffs.
A Growing Focus on Digital Economy Compliance
This recent initiative highlights the NRA’s broader efforts to ensure that income generated through the digital economy is appropriately taxed. The rise of platforms allowing individuals to monetize content has presented new challenges for tax authorities globally. In Bulgaria, this initiative aims to bring transparency to these earnings and secure the associated tax revenue.
The NRA’s decision to issue warnings rather than immediately impose penalties reflects an effort to encourage voluntary compliance. However, non-compliance could result in legal and financial consequences.
As Bulgaria continues to adapt its tax systems to address the evolving digital landscape, the NRA’s actions serve as a reminder for individuals earning income through non-traditional means to meet their tax obligations.