08.12.2022

A FAMILY WITH TWO CHILDREN SAVES BGN 1,200 FROM TAXES

Working parents could receive hefty sums on top of their December paychecks under the new Child Tax Credit rates.

The NRA reminds that for the income received in 2022, they reimburse through employers BGN 600 per parent of one child, BGN 1,200 for two children and BGN 1,800 for three or more children. For raising a child with disabilities, the relief is increased by another BGN 1,200 per child.

These funds are received with the December salary, if during the year the parents did not use the advance tax discount. This option was introduced in the middle of the year, but it was poorly promoted, so parents are expected to request the relief en masse in December. For this purpose, they must submit an application from December 1 to 31 to their employers. In this case, the employer can refund the tax until the end of January 2023.

The other option remains in effect - to request the relief from the NRA together with this year's income tax return, which must be submitted by the end of April 2023.

In order to benefit from the tax relief, the natural person (including a sole trader) must have received income subject to annual taxes in 2022, the NRA recalls. People who only have income such as maternity benefit or those subject to final or patent tax cannot take advantage of child tax relief. If one parent falls into this category, the other can claim the tax discount if he meets the conditions, added the NRA.

One of the most important requirements for the application of the reliefs is that the parents do not have arrears for taxes, insurances, fines for which there is a decision for enforcement. The NRA advises citizens to check their tax liability account online with a personal identification code before applying for tax relief to avoid inconvenience.