Tax Alert Act Amending and Complementing the Personal Income Tax Act
ACT AMENDING AND COMPLEMENTING THE PERSONAL INCOME TAX ACT
(IN FORCE AS OF 01 JANUARY 2008)
In State Gazette No. 113/28.12.2007 was promulgated an Act Amending and Complementing the Personal Income Tax Act which enters into force as of 01.01.2008.
Some of the most important amendments introduced by the Act are summarized below.
I. AGGREGATE ANNUAL TAX BASE TAX
- Aggregate Annual Tax Base
The aggregate annual tax base is defined as a sum of the below mentioned annual tax bases reduced by the statutory tax reliefs:
(a) tax base of the employment income,
(b) tax base of other economic activity income under Art. 30 (“the Professions”),
(c) tax base of rental income,
(d) tax base of income from transfer of rights or property,
(e) tax base of income from other sources.
The aggregate annual tax base does not comprise income from sole trader economic activity.
(a) Employment Income
- income not included in the taxable employment income
(1) The maximum total amount of the one-off benefits provided by the employer at the expense of the social expenses upon birth, marriage or death is fixed at BGN 2400 (Art. 24, p. 11 of the Personal Income Tax Act);
(2) It is specified that the remuneration payable by the employer for the first day of the sickness leave shall not be included in the taxable income (Art. 24, p. 14).
