Higher tax allowances for children and disabled children will apply to income earned in 2022.
The amount of the relief depends on the number of children, with BGN 6,000 for one child under the age of majority (an amount to be received up to BGN 600 – up to 2021 it was BGN 450), BGN 12,000 for two children (an amount to be received up to BGN 1,200, in 2021 it was BGN 900) and BGN 18,000 for three or more children (an amount to be received up to BGN 1,800, in 2021 it was BGN 1,350). The rate for tax relief for disabled children is BGN 12,000 (amount to receive up to BGN 1,200).
Parents should check their tax and national insurance account before submitting the necessary documents to claim tax relief. If they have unpaid public debts that are enforceable, they need to pay them.
Parents who have been on maternity leave throughout 2022 cannot benefit from the tax relief as the income they have received is non-taxable, i.e. they have not paid tax on which the relief can be claimed. In these cases the tax relief can be claimed by the other parent.
For the first time, it will be possible to claim the annual tax allowance for children under the age of majority in advance. Parents can claim upfront relief for children on a one-off basis only in July or only in October.
If parents take shared tax relief because of insufficient income for one, there can be no advance relief.
The monthly taxable amount for July is reduced by the sum of the amounts for the months January to June: for one minor child – BGN 500 per month, for two – BGN 1,000 per month, for three or more – BGN 1,500 per month, for a child with 50 per cent or more of the type and degree of disability – BGN 1,000 per month.
Monthly tax base for the month of October shall be reduced by the sum of the amounts for the months of July – September: for one minor child – in the amount of BGN 500 per month, for two – BGN 1 000 per month, for three and more – BGN 1 500 per month, for a child with 50 and over 50 per cent type and degree of disability – BGN 1 000 per month.
For the months of October – December 2022, the tax benefits are used in the calculation of the annual tax base. Where the annual rate of tax assessed is less than the amount of tax deducted in advance, the employer shall refund the difference to the parent by 31 January of the following year.
The relief is claimed by the parents notifying their employer or filing their return with the NRA.
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