Tax Alert-Amendments to Local Taxes and Fees Act
ACT AMENDING AND COMPLEMENTING THE LOCAL TAXES AND FEES ACT (IN FORCE AS OF 01.01.2011)
The Act Amending and Complementing the Local Taxes and Fees Act was promulgated in State Gazette № 98/14.12.2010 and entered in force on 01.01.2011.
Some of the most important changes and amendments are summarised below.
Exemption from real estate tax
The real estates having value of up to BGN 1,680 shall be exempt from real estate tax.
Local real estate tax
- New real estate tax thresholds
The amendments introduce new thresholds for maximum amounts of real estate tax up to which the respective municipal councils may define the tax as follows:
Amount as of 01.01.2011
Real estate tax from 0.1‰ up to 4,5‰
- Terms for payment
The real estate tax for 2011 is payable in two equal installments and not four as it was prior to the amendments.
The first payment is to be made from March 1st until June 30th, and the second one – until October 30th.
The prepayment of the entire real estate tax within the period from March 1st until April 30th entitles the tax payer to a 5% statutory discount.