site.btaNational Revenue Agency Tightens Tax Compliance Control in Construction

The National Revenue Agency (NRA) has focused on the construction industry and investors as summer is the peak season for them, the Agency said on Thursday.

The NRA is tightening control, including through tax and social security inspections of construction projects. Construction is an important dynamic industry and tax evasion by its operators could cause a sizable detriment to the Exchequer. Risk analysis has found that tax evasion in construction amounts to some BGN 480 million every year, the NRA said.

The COVID pandemic has not caused a major decrease in building construction; what is more, it has boosted investments in real estate. Property transactions shrank by about 8% during the pandemic only to soar by 28% immediately after it. On these grounds construction is considered a major risk for tax evasion and is closely monitored by the tax administration.

This year a public information campaign will explain to sellers and buyers the risks involved in property transactions at below-market prices. The NRA's Facebook page will cover the campaign.