Tax filing campaign in Bulgaria begins on January 10

Individuals can submit their annual income tax return for 2022 from today, January 10, 2023

The tax returns can be submitted via the electronic service, by post and in paper at the National Revenue Agency’s (NRA) offices.

The records of the income from the past year will be filled in the tax returns by the NRA with the data provided by employers regarding payments. They will be ready at the beginning of March. The information in them is for income from contracts of employment, fees and rents.

At the beginning of March, once employers submit the data to the revenue agency, the e-service for accessing the pre-filled income tax return, which is submitted with a PIK or electronic signature through the NRA's e-services portal, will be launched. Data on income received in 2022 from employment, freelance contracts and fees, rental income for property can be automatically entered in it.

The deadline for the use of 5% discount for early online filing and payment is the end of March. The final deadline for payment of due taxes is May 2nd.

This year, tax relief is also available for people with reduced capacity to work, donations made, young families, children and disabled children, non-cash payments and repairs and improvements to property.

Tax relief can be claimed only if you have no enforceable public debts at the time you file your annual tax return.

Where you have received full tax relief for donations, children and disabled children through your main employer and you have submitted the necessary documents to your employer, the documents are not to be attached again to your annual tax return.

Tax relief for children allows a reduction in the tax base of BGN 6,000 for one child under the age of 18; BGN 12,000 for two children; BGN18,000 for three or more children. In the current campaign, tax relief for disabled children is also available, reducing the tax base by BGN 12,000 for bringing up a child with a disability of 50 per cent or more.

Tax relief for young families allows the tax base to be reduced by the interest paid on the first BGN 100,000 of a mortgage loan to buy a home.

The tax relief for reduced working capacity is available to persons with 50 per cent or more reduced working capacity. It reduces the tax base by BGN 7 920. The relief can be claimed for the year of the incapacity for work and for the year of expiry of the expert decision in which the reduced capacity for work was determined.

Relief of up to 10% of the taxable amount may also be claimed for personal voluntary insurance and insurance contributions made during the year and for personal voluntary supplementary insurance and life insurance contributions.

In the case of personal contributions for retirement , the tax base is also reduced by the contributions made during the year on account of contributions for the purchase of retirement insurance.

Tax relief for donations allows a reduction in the tax base of up to 65% in total.

Individuals can also benefit from the tax relief for non-cash payments, which allows a reduction of the tax due by 1%, but not more than BGN 500.

There is also a possibility of tax relief for improvements or repairs of real estate, by deducting from the tax base payments made for labour up to BGN 2,000. The requirements are that the property is in Bulgaria, that the individual is the owner or co-owner, and that the improvements or repairs are carried out by individuals or legal entities from Bulgaria or the EU.

Persons operating as traders, sole traders and farmers who have opted for this tax regime shall submit their tax returns from 1 March to 30 June.

From 1 March to 30 June is also the deadline for companies to declare corporate tax, tax on expenses, tax on the income of budget-funded enterprises and tax on the activity from operating ships. The deadline for payment of these taxes is 30 June.

For failure to submit a tax return, the sanction is up to BGN 500. In the event of repeaed failure to submit a tax return, the fine is up to BGN 1000.

Further information on the tax and social security requirements is available on the website of the revenue agency nap.bg and on the telephone numbers of the NRA Information Centre: 02/9859 6801 or 0700 18 700.