Tripartite Council Approves Changes in Tax Legislation in Bulgaria

Politics » DOMESTIC | October 9, 2018, Tuesday // 09:17| Views: | Comments: 0
Bulgaria: Tripartite Council Approves Changes in Tax Legislation in Bulgaria

Increased taxes for old cars from 2019 was a proposal that trade unions and employers approved on 8thof October at a meeting of the National Council for Tripartite Cooperation. The change will be incorporated the tax laws.

Another idea aims at is to make it easier for employers who will no longer issue business income notes. Revenue in the state budget is expected from foreign companies, which will pay profit tax in Bulgaria. For the first time, individual tax laws have been unified in one and this is the Corporate Income Tax Act.

Due to the introduction of a new environmental component, the annual tax gets increased by 30% for nearly 2 million and 500,000 cars, which are 15 or more years old.

There will no longer be tax exemptions for vehicles with catalytic converters and low power cars. They will remain in place only for motorcycles and mopeds up to 100 horsepower.

Trade unions did not agree with the new taxation on motor vehicles.

The new changes envisage dropping the requirement for presenting a note for paid taxes by the vendor upon selling a vehicle. This will be done by the notary by electronic means. He will then declare the sale to the relevant municipal fiscal authorities within 7 days.

Change to the property tax envisage 50% discount for only one dwelling declared as main, each subsequent will be taxed on its full tax assessment.

Business suggested that by 2020, the official notes issued by the employers for the earnings of the employees should be cancelled and this would be done electronically.

Employers have demanded that the obligatory annual audit of small and medium-sized companies with a turnover of up to BGN 4 million be dropped, saying that EU practice is to have such audit for companies with an annual turnover of 8 million.

Employers estimated that 6,500 small and medium-sized companies are losing 13 million BGN annually due to obligatory audit.

Finance Minister Vladislav Goranov said the tax burden would not change until the end of this term in office and presented the motives for the new fiscal package.

Vladislav Goranov: The proposed changes are motivated by the following groups of considerations: reduction of the administrative burden and costs for business and citizens when applying tax legislation.

There is also a new regime for taxation of foreign companies operating in Bulgaria. The aim is to leave the profit tax in Bulgaria and not in the country where the company is registered. The package of tax laws will be submitted for discussion to the Council of Ministers.

Source: BNT

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