Tax Alert Act Amending and Complementing the Personal Income Tax Act



  • statutory expenses

The statutory expenses are decreased from 20% to 10%.

(d) income from rights or property transfer

  • acquisition price for the purposes of taxable income determination

The provisions on the acquisition price calculation for the purposes of taxable income determination have been extended.

In particular, the acquisition price upon construction right establishment and the acquisition price upon a follow-up sale or exchange of the real estate have been specified.

  • tax treatment of installments paid under a terminated leasing agreements

The tax treatment of the installments paid during the preceding years in cases of premature termination of a leasing agreement has been regulated.

(e) tax reliefs

  • tax relief for persons with decreased working capacity

The sum of the annual taxable bases for persons having 50 and over 50% decreased working capacity shall be decreased by BGN 7920.  The monthly tax base for employment income shall be decreased by BGN 660.

  • tax relief for personal social security and insurance contributions and for personal¬† length of security contributions upon retirement

The tax relief for personal social security and insurance contributions and for personal length of security contributions upon retirement has been preserved.

  • children tax relief abolishment

The children tax relief has been abolished.

  • donation tax relief

The tax relief for donations which is deducted from the sum of the annual tax bases has been preserved.

The potential donation beneficiaries do not, however, comprise disabled people, victims of crises, poor-living people, disabled children or children without parents, students in Bulgarian schools and universities as regards the established or provided scholarships.

II. Tax on the Income from Sole Trader Economic Activity