The current government adopted certain measures with the aim to put pressure on the businesses with regard to:
- tax collection – as implementing additional quarterly reporting rules for companies showing in their balance sheet cash-in-hands amounts, receivable from shareholders, managers, and employees (incl. loans) of over BGN 50 000 (EUR 25 600)
- straighten the control over movement of goods with high fiscal risk (e.g. sugar, meat, milk, oils, etc.) – the companies shall report each movement/transport of such goods in an online platform of the Revenue agency and obtain a unique identification number for each movement for control purposes. This applies to transports between Bulgaria and EU states, imports or exports from Bulgaria and internal transports on the territory of Bulgaria.
The social security contributions for 2024 currently remain at the levels of 2023 – total of 32.7% of the gross income distributed at a ratio of about 40/60 for employee/employer. The maximum social insurance base (ceiling) for 2024 is BGN 3 750.
Corporate Income Tax
The deadline for filing of yearly CIT return for 2023 remained unchanged in 2024, namely between 1st. March to 30th June 2024. The deadline for filing of the annual financial statements for 2023 is 30th September 2024.
Personal Income Tax
The term for filing of yearly personal tax return for 2023 remains unchanged. This term is between 1st. January and 30th. April of the following year.
The statutory minimum salary as of 01.01.2024 was increased from BGN 780 (EUR 399) to BGN 933 (EUR 477). According to recent legislative changes the statutory minimum salary for each subsequent year shall be 50% of the average gross salary for a 12 months period covering the second half of the previous year and the first half of the current year. The average gross salary shall be determined by 01st September of the current calendar year.
VAT
An important change in the VAT Act is the option provided to companies acting as supplier to adjust their tax base with the amounts of uncollectable receivable by issuing a credit note against the debtor. These adjustments are subject to several preconditions, however this is a legislative step in the right direction which implements the basic principle of neutrality of the VAT in situations of non-collectible receivable.
15% global minimum corporate income tax introduced.
As of January 1st. 2024 the EU Directive on global minimum level of taxation has been implemented as amendments of the Bulgarian Corporate Income Tax Act which provide for minimum effective taxation of 15% applicable to local entities that, are members of a multinational group of enterprises or a large national group of enterprises with annual revenues in the consolidated financial statements of the ultimate parent entity of the group of at least EUR 750,000,000 , during at least two of the four tax periods before the current tax period.
The minimum taxation is applied to the entities in scope provided that the effective taxation in the jurisdiction of establishment is lower than 15%, as aggregated calculation for all entities in this jurisdiction.
The amendments provide for the rules of primary and secondary taxation with top-up tax, the determination of the effective tax rate and the additional tax, the condition of simplified regimes and exceptions, the transitional rules, the reporting obligations, and deadlines, as well as the administrative sanctions for non-compliance.
