February 7 2020
On 5 February 2020, the National Revenue Agency (NRA) announced that the following two services which will be accessible for taxpayers electronically on the NRA's website have been launched:
- actual status of the data declared with the report under Art. 73(1) of the Personal Income Tax Act for income paid to individuals and the withheld tax and mandatory social security contributions; and
- actual status of the data declared with the report under Art. 73(6) of the Personal Income Tax Act for the employment income paid during the year.
The announcement is available here
February 10 2020
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.
November 28 2018
On 27 November 2018, amendments to the Personal Income Tax Act were published in the State Gazette. Below is a summary of the main changes.
New tax rules for awards
The monetary and non-momentary awards which are not provided by the employer will be subject to a one-off tax due by the payer. Currently, such income should be reported by the recipient in his/her annual personal income tax return.
In addition, awards with an amount of up to BGN 100 (currently BGN 30) will be exempt from Personal Income Tax.
One-off tax for subsidies and State aid
Subject to a one-off tax will be the gross amounts received from individuals (not registered as farmers) in the form of State aid, subsidies or other support from the European Agricultural Guarantee Fund, the European Agricultural Fund for Rural Development or amounts from the national budget.
Extended mandatory electronic submission of documents to tax authorities
It will be mandatory to submit electronically the following documents to the National Revenue Agency:
- all declarations and reports of self-insured persons;
- the annual report for income paid to individuals under article 73, paragraph 1 of the Personal Income Tax Act; and
- information on the income paid by employers to residents of other EU Member States.
New administrative simplifications
The following administrative simplifications will be introduced:
- abolishment of the requirement for providing a declaration by the spouse that he/she will not apply for tax relief for young families, children (including children with disabilities);
- regarding tax relief for children (including those with disabilities), it will be allowed that the relief can be used by both parents (currently only one parent may use it);
- it is provided that traders that did not perform economic activities (as per the Accountancy Act) during a tax year will be exempt from the requirement to submit annual activity reports.
The above amendments will be effective from 1 January 2019. In addition, as of 1 January 2020 the abolishment of the requirement for employers to provide paper notes on income paid, taxes and social/health securities withheld from their employees unless they request such documents, is envisaged. The information which is included in these notices will be submitted by employers to the National Revenue Agency.
February 25 2020
On 19 February 2020, the parliament approved at second (final) reading amendments to the Excise Duties and Tax Warehouses Act. Under the amendments, goods held under CN code 3814 (organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers) will be considered excise goods. The excise duty rate for these products used as motor fuel will be BGN 710 per 1,000 litres.
February 25 2020
From 1 January 2020, taxable persons are allowed to deduct expenses (directly or through depreciation) relating to the construction, improvement and repairs of publicly owned technical infrastructure which is used, in full or in part, for the carrying on of their economic activities. Under transitional rules, such expenses can also be deducted (through depreciation) if they were incurred between 1 January 2015 and 31 December 2019.
Under the recently adopted amendments, the above deduction option is expanded to include expenses incurred for repairs of publicly owned technical infrastructure.
The amendments are effective retroactively as from 1 January 2020.
February 25 2020
On 19 February 2020, the parliament approved at second (final) reading amendments to the Value Added Tax (VAT) Act. The amendments concern the transfer of greenhouse emission allowances (based on Directive 2003/87/EC
of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC
The allowances traded are included in the list of supplies to which the domestic reverse charge mechanism applies.
The amendments also provide that, in cross-border situations where a Bulgarian person is engaged in emissions trading with a supplier/recipient established in another country, the general VAT rules will be applicable.
This reverse charge regime will apply until 30 June 2022.