Bulgaria

Individual - Significant developments

Last reviewed - 30 July 2020

As of 1 January 2020, the minimum monthly social security insurance base is increased to 610 Bulgarian lev (BGN) (from BGN 560 for 2019) and the maximum monthly social security insurance base remains the same as for 2019 at BGN 3,000.

New rules for income from monetary and non-monetary prizes/awards

The income from monetary awards and non-monetary (above BGN 100) prizes, which are not provided by an employer or assignor, is treated as taxable income and subject to a 10% final one-off tax (withheld and paid at source by the company). Thus, the compliance regime is less burdensome for the individuals who will have no filing obligations as well as for the award providers, who will not be required to issue income statements for the income from monetary/non-monetary prizes.

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.

Changes in the deadline for early filing of the annual personal income tax (PIT) return

A 5% discount on the outstanding tax reported in the annual PIT return is applied to individuals who submit their tax returns electronically and pay the tax due by 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 is 28 February of the year following the reporting year. The deadline for filing of the statement under Art. 73(6) of the PITA for employment income paid during the year by employers is also 28 February of the year following the reporting year.