As of 1 January 2019, the minimum monthly social security insurance base is increased to 560 Bulgarian lev (BGN) (from BGN 510 for 2018) and the maximum monthly social security insurance base is increased to BGN 3,000 (from BGN 2,600 for 2018).
The minimum monthly salary increases to BGN 560.
New rules for income from monetary and non-monetary prizes/awards
Up to now, the income from monetary awards and non-monetary (above BGN 30) prizes, which are not provided by an employer or assignor, were treated as taxable income from other sources and subject to a 10% personal income tax (PIT). As of 1 January 2019, such income will be subject to a 10% final one-off tax (withheld and paid at source by the company - award provider). Thus, the compliance regime will be less burdensome for the individuals who will have no filing obligations as well as for the companies - award providers, who will not be required to issue income statements for the income from monetary/non-monetary prizes.
Companies - providers of such awards will have to report the tax due on these awards in the tax return under Art. 55 of the PITA & Art. 201 of the CITA (filed on a quarterly basis) and remit the tax due to the tax office on a quarterly basis.
Nevertheless, Bulgarian tax residents who have acquired foreign-source income from monetary and/or non-monetary prizes will have to report and tax such income on an annual basis only with the annual tax return.
The change includes an increase of the non-taxable threshold for non-monetary awards from BGN 30 up to BGN 100.
Changes in the deadline for early filing of the annual PIT return
Up to now, a 5% discount on the outstanding tax reported in the annual PIT return was applied to individuals who had submitted their tax returns electronically and had paid the tax due by 31 January of the year following the reporting year. The deadline for electronic filing of the annual PIT return and payment with 5% discount on the outstanding taxes will be extended to 31 March of the year following the reporting year.
New deadline for filing of statement under Art. 73(1) of the PITA
The deadline for filing of the statement under Art. 73(1) of the PITA for non-employment income paid during the year by enterprises and self-insured persons - payers of income, will be shortened from 15 March to 28 February of the year following the reporting year. However, the deadline for the filing of the statement for 2018 will remain 15 March 2019.