Cash Transactions Limit in Bulgaria Remains 10,000 BGN

Bulgaria’s Parliament voted on 20 July at second reading to approve that the limit on cash payments in the country will remain 10,000 BGN (5,000 Euro).

The MPs voted to adopt the changes to the Tax and Social Insurance Code, proposed by the Council of Ministers.

With the amendments proposed by the Council of Ministers, cash payments were projected to be phased out from 10,000 to 1,000 BGN.

The main ruling party GERB proposed that cash payments be limited to BGN 5,000 (Euro 2,500) from January 1, 2018. However, this proposal was not supported in the vote in Parliament.

The MPs adopted texts in the Tax and Social Insurance Code, which will improve the effectiveness of the application the law with regard to third party liability for outstanding tax and social security contributions to liable entities. The changes also provide for exdending the circle of persons in relation to whom liability can be applied.

The Chair of the Budget and Finance Committee Menda Stoyanova has explained that the changes create an opportunity for the tax administration to seek accountability when companies transfer their shares to socially disadvantaged people.

By adopting the changes, the MPs also introduced the rules of two European directives for automatic exchange of information in the field of taxation. The goal is to combat tax evasion more effectively.