The Ministry of Finance has published for public consultation the draft Budget Act for 2023, which is aimed at protecting wages and preserving social security benefits. To combat inflation and strengthen the economic and social pillars for the future, the government plans to reduce expenditure, but not increase taxes.
The key tax measures relate to the following fields:
- corporate income taxation:
- implementation of the Minimum Taxation Directive (2022/2523) into domestic legislation; and
- extension of the beneficial rules for food vouchers;
- personal income taxation:
- increased tax relief for children; and
- indirect taxation:
- value added tax; and
- excise duties.
The Draft Budget further proposes an anti-tax evasion measure by requiring dividends to be paid out only by a transfer or deposit to a payment account, and not in cash.
The package also includes the mid-term budget forecast for the period 2023-2025.
The draft Budget Act and the mid-term budget forecast, published on 27 June 2023, are available here (in Bulgarian only).