What is new on taxes and social securities in Bulgaria
In December of last year, the changes in the fields of accountancy, taxes and social securities for 2021 were published in several issues of State Gazette. Here is a summary of some of the most important changes:
1. Extension of the deadlines for submitting annual tax returns and paying taxes
- The companies' annual tax returns will be submitted from March 1st until June 30th, 2021. The respective taxes will be paid within the same period.
- The deadline for publishing the annual tax returns will be September 30th, 2021, and for the inactivity declaration – June 30th, 2021.
- Individuals, who submit their annual tax return electronically before March 31st, will take advantage of a 5% discount on the additional payable tax, provided they have no public obligations.
2. Advance payments for corporate tax
The advanced payments are on the estimated profit for the respective year, but in order to determine whether they are payable, the annual net income from sales for the year before the previous one is taken into account. The taxable persons are obliged to submit a new template declaration for declaring their advanced payments in time between March 1st and April 15th.
3. Software for sales management in a commercial site (SSMCS)
The usage of SSMCS is entirely voluntary. The entities, which use a software from the NRA's list, will benefit from certain tax reliefs. For those, who have chosen SSMCS, but despite that use a different software, which is not included in the NRA's list, there will be sanctions.
4. Taxes on expenses
The non-taxable amount for food vouchers is increased from 60 BGN to 80 BGN a month, given to each employed person.
5. New tax relief related to repairs and improvements
It applies to individuals. The labour expenses of up to a maximum of 2000 BGN made throughout the year, related to improvements and/or repairs of a real estate, are deducted from the total annual tax base.
6. Tax reliefs for kids
The tax relief amount for kids is significantly increased. It will be applied to the income received in 2021. The sums are: 4500 BGN for one kid; 9000 BGN for two kids; 13500 BGN for three and more kids; for a kid with disabilities – 9000 BGN.
7. Salaries and social securities
The minimum wage is increased to 650 BGN. The period of unpaid leave of up to 60 working days will be considered as insurable length of service. The munimum monthly amount of the insured income for self-employed persons is increased to 650 BGN. The minimum insurable income (MII) and the payments in the "Work accident and occupational disease" fund (WAOD) have been changed.
8. Foods and VAT
A decreased VAT rate of 9% is applied to food deliveries until 31.12.2021.
9. Distant sales under the Law on VAT (in force from 01.07.2021) and changes after Brexit
