February 10 2020

Tax incentive for agricultural producers – clarification published

Source: IBFD Tax Research Platform News

On 7 February 2020, the National Revenue Agency (NRA) published on their website a new clarification regarding the application of the corporate income tax incentive for agricultural producers.

Currently, under article 189b of the Corporate Income Tax (CIT) Act, agricultural producers do not have to pay 60% of the CIT due for a respective year, if certain conditions are met and provided that this amount is invested in new buildings and new agricultural technical equipment.

The written clarification discusses the situations when the amount of CIT not transferred by the person has not been used as prescribed in the legislation and in such cases the respective amount of CIT should be paid by the taxable person.

The written clarification (in Bulgarian language) is available at the website of the NRA.