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Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Tax on interest income from fixed deposits 2013/01/01
Rate decrease interest income from term deposits 2014/01/01
Tax relief for minimum wages 2014/01/01
Results 1 - 3 of 3.

Generic Tax Name Personal income tax
Tax name in the national language Закон за данъците върху доходите на физическите лица
Tax name in English Personal income tax
Member State BG-Bulgaria
Tax in force since 2007/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base
Promulgated, State Gazette No. 95/24.11.2006, effective 1.01.2007, amended, SG No. 52/29.06.2007, effective 1.11.2007, amended and supplemented, SG No. 64/7.08.2007, SG No. 113/28.12.2007, effective 1.01.2008, SG No. 28/14.03.2008, SG No. 43/29.04.2008, SG No. 106/12.12.2008, effective 1.01.2009, supplemented, SG No. 25/3.04.2009, effective 1.06.2009, amended and supplemented, SG No. 32/28.04.2009, effective 1.01.2010, amended, SG No. 35/12.05.2009, effective 12.05.2009, supplemented, SG No. 41/2.06.2009, effectve 1.07.2009, amended, SG No. 82/16.10.2009, amended and supplemented, SG No. 95/1.12.2009, effective 1.01.2010, SG No. 99/15.12.2009, effective 1.01.2010, SG No. 16/26.02.2010, effective 26.02.2010, supplemented, SG No. 49/29.06.2010, effective 29.06.2010, amended and supplemented, SG No. 94/30.11.2010, effective 1.01.2011, amended, SG No. 100/21.12.2010, effective 1.01.2011, amended and supplemented, SG No. 19/8.03.2011, effective 8.03.2011, SG No. 31/15.04.2011, effective 1.01.2011, supplemented, SG No. 35/3.05.2011, effective 3.05.2011, amended, SG No. 51/5.07.2011, amended and supplemented, SG No. 99/16.12.2011, effective 1.01.2012, amended, SG No. 40/29.05.2012, SG No. 81/23.10.2012, effective 1.09.2012, amended and supplemented, SG No. 94/30.11.2012, effective 1.01.2013, SG No. 23/8.03.2013, effective 8.03.2013, amended, SG No. 66/26.07.2013, effective 26.07.2013, amended and supplemented, SG No. 100/19.11.2013, effective 1.01.2014, supplemented, SG No. 109/20.12.2013, effective 1.01.2014, amended, SG No. 1/3.01.2014, effective 1.01.2014, SG No. 53/27.06.2014, SG No. 98/28.11.2014, effective 28.11.2014,amendments in SG No. 105/19.12.2014 effective 1.01.2015, SG No. 107/24.12.2014 effective 13.02.2015, SG No. 12/13.02.2015 and SG No. 22/24.03.2015 effective 1.01.2015.
 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

 


Employment incomes of married couples are Taxed jointly
Taxed separately
Comments


Comments

Scope of Taxation

Article 2. Taxation under this Act shall apply to income accruing to resident and non-resident natural persons.

Taxable Persons

Article 3. Taxable persons under this Act shall be:

1. any resident and non-resident natural persons, who are liable to taxes under this Act;

2. any resident and non-resident persons, who are obligated to withhold and remit taxes under this Act.

 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Any interest paid on bank accounts, except for any interest paid on deposit accounts, with any commercial bank and branch of a foreign bank established in a Member State of the European Union, or in another State which is a Contracting Party to the Agreement on the European Economic Area.


Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments


Comments

Sources of Income inside Republic of Bulgaria

Article 8. (1) Any income derived from economic activity carried out through a fixed base within the territory of the Republic of Bulgaria or from disposition of the property of any such fixed base shall have its source inside the Republic of Bulgaria.

(2) Any income derived from work performed within the territory of the Republic of Bulgaria, or from services performed within the territory of the Republic of Bulgaria, shall have its source inside the Republic of Bulgaria.

(3) Any dividends and share in any liquidation surplus, arising from participating interests in resident legal persons and unincorporated associations, including agreements on joint activity, shall have their source inside the Republic of Bulgaria.

(4) Any income derived from transfer of the enterprise of a sole trader registered in the Republic of Bulgaria shall have its source inside the Republic of Bulgaria, regardless of whether the transferor is a resident person.

(5) (Amended, SG No. 113/2007) Any prizes and remunerations for activity performed within the territory of the country by non-resident natural persons who are public figures, or such active in science, art, culture and sports, including where the income has been paid/charged through a third party, such as a performer-management agency, a production company and other intermediaries, shall have its source inside the country.

(6) The following income, charged/paid by resident persons, by representative offices, as well as by a permanent establishment or a fixed base in the Republic of Bulgaria, shall likewise have its source inside the Republic of Bulgaria:

1. any damages and indemnities accruing in lieu of or together with another income from a source inside the Republic of Bulgaria;

2. any cash prizes and merchandise awards awarded at games, competitions and contests which are not provided by an employer or a commissioning entity;

3. any remunerations other than remunerations under an employment relationship, paid to: an employee or a member of a management or supervisory body of a Bulgarian legal person, of a subsidiary wholly owned by a non-resident person, an employee of a representative office of a non-resident person, or to any other person who performs identical or similar functions;

4. any interest payments, including interest under a lease contract;

5. any income from rent or other provision for use of movable or immovable property;

6. any payments received under franchising agreements and factoring contracts;

7. any copyright and licence royalties;

8. any technical assistance fees;

9. any compensations under management contracts;

10. (new, SG No. 113/2007) any scholarships for study in Bulgaria and abroad;

11. (new, SG No. 113/2007) any income from social and commercial insurance.

(7) (Amended, SG No. 113/2007) Any income covered under Paragraph (6), which is charged by resident legal persons or by resident sole traders through a permanent establishment or a fixed base outside the country or which are paid by resident natural persons through a fixed base outside the country, shall not have its source inside the country.

(8) Any income derived from shares, interests, compensation instruments, investment vouchers and other financial assets, issued by the Bulgarian State, the municipalities, resident legal persons, unincorporated associations and other forms of joint activity, as well as from any transactions therein, shall have its source inside Bulgaria.

(9) Any income derived from agriculture, forestry, hunting ground management and fisheries within the territory of the country shall have its source inside the country.

(10) Any income derived from use, sale, exchange or other transfer of immovable property, including any such transfer of an undivided interest in or a limited right in rem to any such property situated within the territory of the country, shall have its source inside the country.

(11) (New, SG No. 94/2010, effective 1.01.2011, amended, SG No. 1/2014, effective 1.01.2014) Penalties and indemnities of any kind, excluding benefits under insurance policies, charged by resident legal persons, resident sole traders or non-resident legal persons and sole traders through a permanent establishment or a fixed base in the country in favour of non-resident natural persons established in preferential tax treatment jurisdictions, shall be income having its source in Bulgaria.

(12) (Renumbered from Paragraph (11), SG No. 94/2010, effective 1.01.2011) Upon determination of the source of income under this Article, the place of payment of the income shall be ignored.

 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments


Comments

Tax Relief for Persons with Reduced Working Capacity

 Article 18. (Amended, SG No. 113/2007)

(1) The sum total of the annual taxable amounts referred to in Article 17 herein for any person who has lost 50 per cent and more than 50 per cent of the working capacity thereof, which loss has been determined by an effective decision of a competent authority, shall be debited with BGN 7,920, including for the year of occurrence of the loss of working capacity and for the year of expiry of validity of the decision.

(2) The monthly taxable amount under Article 42 (2) herein in respect of income from employment relationships accruing to any person who has lost 50 per cent and more than 50 per cent of the working capacity thereof, shall be debited with BGN 660, including for the month of occurrence of the loss of working capacity and for the month of expiry of validity of the decision.

 

Tax Relief for Personal Voluntary Social and Commercial Insurance Contributions

 Article 19.

(1) (Amended, SG No. 113/2007) The sum total of the annual taxable amounts under Article 17 herein shall be debited with any personal voluntary social insurance contributions made during the year to an aggregate amount not exceeding 10 per cent of the sum total of the annual taxable amounts under Article 17 herein, as well as with any personal voluntary health insurance contributions and premiums/payments remitted during the year under contracts of life assurance to an aggregate amount not exceeding 10 per cent of the sum total of the annual taxable amounts under Article 17 herein.

(2) (Amended, SG No. 113/2007) The monthly taxable amount under Article 42 (2) herein, in respect of income from employment relationships, shall be debited with the personal supplementary social insurance contributions remitted during the month through an employer, to an aggregate amount not exceeding 10 per cent of the monthly taxable amount under Article 42 (2) herein, as well as with the personal voluntary health insurance contributions and premiums/payments remitted during the month under contracts of life assurance for the account of the person to an aggregate amount not exceeding 10 per cent of the monthly taxable amount under Article 42 (2) herein.

(3) The tax relief referred to in Paragraphs (1) and (2) shall be enjoyable where, according to the contract concluded with the commercial insurance company or social insurance company, the natural person who is liable for the tax is commercially or socially insured.

(4) The tax relief referred to in Paragraphs (1) and (2) shall furthermore be enjoyable where, by agreement with the persons, the commercial insurance company or the social insurance company is replaced and the resources raised theretofore are moved by bank transfer.

 

Tax Relief for Young Married Couples

 Article 22a. (New, SG No. 106/2008, effective 1.01.2009, repealed, SG No. 95/2009, effective 1.01.2010, new, SG No. 99/2009, effective 1.01.2010)

(1) Resident natural persons may enjoy tax relief for young married couples by deducting the interest payments made during the year on mortgage loans intended for the purchase of a dwelling unit from the sum total of the annual tax amounts under Article 17 herein, where the following conditions are simultaneously fulfilled:

1. the mortgage loan agreement has been concluded by a taxable person and/or by a spouse with whom the said persons have contracted a civil marriage;

2. the taxable person and/or the spouse have not attained the age of 35 years by the date of conclusion of the mortgage loan agreement;

3. the mortgaged dwelling unit is a sole residence for the family during the tax year.

(2) Where the amount of the mortgage loan exceeds BGN 100,000, the tax relief referred to in Paragraph (1) shall be enjoyable for interest payments made during the year on of the first BGN 100,000 of the principal.

(3) The tax relief shall be enjoyed up to the amount of the sum total of the annual taxable amounts under Article 17 herein and provided that the taxable person submits a written declaration by the spouse to the effect that she or he will not claim the tax relief for the relevant tax year.

(4) The circumstances and conditions under Paragraphs (1) to (3) shall be declared by the person in the annual tax return under Article 50 herein. 

(5) (New, SG No. 100/2013, effective 1.01.2014) The tax relief for young married couples shall furthermore be enjoyed by non-resident natural persons established for tax purposes in a Member State of the European Union or in another State which is a Contracting Party to the Agreement on the European Economic Area.

 

Tax Relief for Income, Not Exceeding the Minimum Salary

Art. 22b. (new – SG 109/13, in force from 01.01.2014; revoked - SG 105/14, in force from 01.01.2015)

 

Tax Relief for children

Art. 22c. (new - SG 105/14, in force from 01.01.2015) (1) Local natural persons and foreign natural persons based for tax purposes in a European Union Member State or in another state which is a party to the Agreement on the European Economic Area, enjoy tax relief for children by deducting from their annual tax bases under Art. 17:

1. two hundred levs – for one minor child;

2. four hundred levs – for two minor children;

3. six hundred levs – for three and more minor children.

(2) The tax relief shall be enjoyed where the following conditions are existing in aggregate:

1. as of 31 December of the tax year the child is a local person of a European Union Member State or of another state which is a party to the Agreement on the European Economic Area;

2. the child has not come of legal age;

3. as of 31 December of the tax year the child has not been accommodated for fostering on full state support in a specialized child institution.

(3) The tax relief shall be enjoyed by a person under par. 1 who as of 31 December of the tax year is:

1. a parent who has not been deprived of parental rights and on the condition that:

a) the child has not been accommodated outside the family, and

b) no guardianship or custody has been instituted, or

2. a guardian or a custodian – in case of guardianship or custody, or

3. a member of relatives’ or close ones’ families – in cases where the child is accommodated for a period of minimum 6 months with relatives or close ones within the meaning of Child Protection Act, or

4. a foster parent – in cases of long-term placement of the child for fostering to a foster family within the meaning of the Child Protection Act.

(4) Tax relief shall be enjoyed up to the amount of annual tax bases and provided that the person under par. 3 submits a written declaration by the other parent, respectively by the other foster-parent, close one or relative that they are not enjoying the discount for the respective tax year.

(5) The declaration under par. 4 shall not be submitted where the other parent, respectively the other foster-parent, close one or a relative:

1. is unknown, dead or deprived of parental rights, or exercising of parental rights has not been granted to them in case of a divorce;

2. has not got any income subject to taxation with a tax on the total annual tax basis or by a tax on the annual tax basis under Art. 28.

(6) Tax relief may be enjoyed also by a parent to whom exercising of parental rights has not been granted in case of a divorce, where the conditions under par. 1 – 3 apply to them and where they submit a written declaration under par. 4 by the other parent.

(7) Tax relief shall be enjoyed also for the years in which the child was born and comes of legal age.

(8) The circumstances and the conditions under par. 1 – 7 are declared by a declaration in an approved standard form.

Tax relief for children with disabilities

Art. 22d. (new – SG 105/14, in force from 01.01.2015) (1) The amount of the annual tax bases under Art. 17 of local natural persons and of foreign natural persons based for tax purposed in a European Union Member State or in another state which is a party to the Agreement on the European Economic Area shall be reduced by BGN2000 for bringing a child up by 50 and more than 50 per cent of type and degree of injury, determined by an enforced decision of a competent authority.

(2) Tax relief shall be enjoyed, including for the year in which the type and degree of injury have been established, also for the year of expiration of validity of the decision, where the following terms and conditions are existing in aggregate:

1. as of 31 December of the tax year the child is a local person of a European Union Member State or of another state which is a party to the Agreement on the European Economic Area;

2. the child has not come of legal age;

3. as of 31 December of the tax year the child has not been accommodated for fostering on full state support in a specialized child institution.

(3) The tax relief shall be enjoyed by a person under par. 1 who as of 31 December of the tax year is:

1. a parent of a child with 50 and more than 50 per cent of a type and degree of injury, who has not been deprived of parental rights and on the condition that:

a) the child has not been accommodated outside the family, and

b) no guardianship or custody has been instituted, or

2. a guardian or a custodian of a child with 50 and more than 50 per cent of a type and degree of injury – in case of guardianship or custody, or

3. a member of relatives’ or close ones’ families of a child with 50 and more than 50 per cent of a type and degree of injury – in cases where the child is accommodated for a period of minimum 6 months with relatives or close ones within the meaning of Child Protection Act, or

4. a foster parent of a child with 50 and more than 50 per cent of a type and degree of injury – in cases of long-term placement of the child for fostering to a foster family within the meaning of the Child Protection Act.

(4) Tax relief shall be enjoyed up to the amount of annual tax bases under Art. 17 and provided that the person under par. 3 submits a written declaration by the other parent, respectively by the other foster-parent, close one or relative that they are not enjoying the discount for the respective tax year.

(5) The declaration under par. 4 shall not be submitted where the other parent, respectively the other foster-parent, close one or a relative:

1. is unknown, dead or deprived of parental rights, or exercising of parental rights has not been granted to them in case of a divorce;

2. has not got any income subject to taxation with a tax on the total annual tax basis or by a tax on the annual tax basis under Art. 28.

(6) Tax relief may be enjoyed also by a parent to whom exercising of parental rights has not been granted in case of a divorce, where the conditions under par. 1 – 3 apply to them and where they submit a written declaration under par. 4 by the other parent.

(7) The circumstances and the conditions under par. 1 – 6 are declared by a declaration in an approved standard form.

 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To   EUR/Natcur
Rate: 10.00 %
Comments

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 5.00 %
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits: 8.00 %
Final Creditable
Comments


Comments

Any persons who or which carry out economic activity in a merchant capacity within the meaning given by the Commerce Act , including any sole traders, shall remit tax prepayments at the rate of 15 per cent under the terms and according to the procedure established by the Corporate Income Tax Act .

The tax rate of 15 per cent is applying from BGN 0.0. 

 
Tax due date

The tax which the employer is obligated to withhold shall be paid not later than on the 25th day of the month next succeeding the month in which the tax was withheld or in which the part payments were made.

The tax due on the overall annual tax base shall be paid by the 30th April of the year following the year of generating the income. (Except for persons employed under labour employment only and not filing annual tax returns).

 
Tax collector

- Period for and place of payment of taxes withheld by the income payer

· for labour employment, the tax withheld by the income payer shall be paid by the 25th day of the month following the month of withholding the tax.

· the tax shall be remitted to the executive budget by crediting an account of the National Revenue Agency territorial agency exercising competence over the permanent address of the resident natural person, including the sole trader.

- Period for and place of payment of taxes by the person earning the income

· the tax due on the overall annual tax base shall be paid by 30 April of the year following the year of earning the income.

· the tax shall be remitted to the executive budget by crediting an account of the National Revenue Agency territorial agency exercising competence over the permanent address of the resident natural person, including the sole trader.

  • Art. 53. (1) The annual tax return shall be submitted not later than 30 April of the year subsequent to the year during which the income was received.
  • (2) (amend. – SG 105/14, in force from 01.01.2015) Those persons who submit their annual tax return prior to 31 March of the subsequent year electronically, shall enjoy a 5-percent discount of the amount payable under the annual tax return provided that they do not have public liabilities subject to compulsory execution as of the time of filing of the declaration and the payable tax has been paid on or before the 30th day of April of the year next succeeding the year of acquisition of the income.
 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51a

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,103.70 EUR 2.65
2011 1,054.20 EUR 2.57
2010 1,035.70 EUR 2.75
2009 983.80 EUR 2.64
2008 982.30 EUR 2.63
2007 944.20 EUR 2.89
2006 679.90 EUR 2.49
2005 630.60 EUR 2.63
2004 630.60 EUR 3.00
2003 577.50 EUR 3.08
2002 539.30 EUR 3.09
2001 544.70 EUR 3.44
2000 562.70 EUR 3.94

Comments