03.08.2023
TAX AND INSURANCE CHANGES IN THE 2023 BUDGET
In the State Gazette no. 66 of 01.08.2023 were promulgated:
Law on the state budget of the Republic of Bulgaria for 2023 and
State Social Security Budget Law 2023
In this regard, the more important changes are systematized below.
Minimum insurance income from 01.08.2023:
1) The minimum insurance income is increased to BGN 780.
2) The minimum insurance income for self-insured persons is increased to BGN 780.
The amount of the maximum monthly insurance income of BGN 3,400 is maintained.
New amount of monetary compensation for raising a child up to the age of 2 under Art. 53 of the Code for social insurance and for raising a child up to the age of 8 by the father (adoptive) under Art. 53g of the same code for 2023 – BGN 780. This change is retroactive from 01.01.2023.
The following additions are made to the Social Security Code: Remunerations relating to work done in the past are distributed for the days worked during which the work was done (Article 6, Paragraph 2). It has been added that self-insured fathers, who are insured for general illness and maternity, have the right to compensation under para. 6 of Art. 50 when they have 6 months of insurance experience as insured for this risk.
Declaration of cash balances and receivables from owners, staff and accountable persons
In Art. 123 in VAT is created para. 10, which reads:
When, at the end of a calendar quarter, the total amount of cash available in cash registers, the amount of receivables (including from granted loans) from owners, natural persons, workers, employees, persons employed under a management and control contract, and accountable persons exceeds BGN 50,000, the registered persons under this law, which are enterprises under the Accounting Law, declare separately for the corresponding calendar quarter with the declaration under Art. 55, para. 1 of the Law on Personal Income Taxes and Art. 201, para. 1 of the Law on Corporate Income Taxation, by the end of the month following the quarter, data from your current accounting records regarding:
The first period for which data is declared under the conditions and in accordance with Art. 123, para. 10 of the Value Added Tax Act, is the third quarter of 2023, as the declaration under Art. 55, para. 1 of the Law on Personal Income Taxes and Art. 201, para. 1 of the Law on Corporate Income Taxation shall be submitted by November 14, 2023.
Limiting some more cash payments and a free account for basic operations
In the Law on Restriction of Cash Payments in force from September 1, 2023, it was added that payments on the territory of the country are made only by transfer or payment to a payment account and for the following cases:
The administrations in the service of revenue collection operations and other receipts on bank accounts of budget organizations will not be able to refuse payments by card just because it was not issued in Bulgaria.
The corresponding amendment to the Labor Code was also made, regulating that when remuneration is paid by an employer under Art. 3, para. 1, item 3 of the Law on the Limitation of Cash Payments, its payment is made only by transfer or deposit to a payment account in a bank in the country specified by the worker or employee.
An amendment was made to the Law on Payment Services and Payment Systems, which regulates the so-called the free account for basic operations, creating Art. 120a, which reads:
Art. 120a. (1) When on account for basic operations under Art. 118, operations are carried out on the order of the holder, including cash withdrawals, no fees are paid for them, when they are at the expense of funds received from labor remuneration, pensions, benefits and benefits under social insurance and social assistance, scholarships for students and PhD students.
(2) The account for basic operations under Art. 118 is served free of charge when the account receives and stores funds under para. 1 and the interest on these funds.
(3) Paragraph 1 does not apply to withdrawing amounts through ATM and POS terminal devices of banks other than the servicing bank.
Important changes to food vouchers
Amendments are being made to the Corporate Income Tax Act in relation to meal vouchers.
From January 1, 2023 (with retroactive date) food vouchers under Art. 209, para. 1 of the Law on Corporate Income Taxation will also be able to be used to pay for electricity and heat energy, natural gas and water used for domestic needs, for activities carried out by cultural organizations under the Law on the Protection and Development of Culture and for showing films under the Film Industry Act, and of tourist services under the Tourism Act. There remains the amount of BGN 200 per month, provided in the form of vouchers for food, which will not be subject to social expenditure tax.
From January 1, 2024, "Food Vouchers in electronic media" are introduced. They are payment instruments that can only be used in a limited way and meet the conditions under Art. 2, para. 1, item 11, letter "c" of the Act on payment services and payment systems provided through the employer to employees, including those under management contracts, which are used to pay for food and food products in restaurants, quick service and food trade establishments, including grocery stores, supermarkets, hypermarkets and others, operating in accordance with the requirements of the Food Law, according to a service contract with an operator. Food vouchers in an electronic medium are not electronic money within the meaning of the Payment Services and Payment Systems Act. An electronic carrier can be a physical electronic carrier or a virtual electronic carrier and is only loaded with food vouchers by an operator.
The operators under Art. 209, para. 3 of the Corporate Income Tax Act can print and issue paper meal vouchers until 30 June 2024. After that date meal vouchers will only be able to be electronic.
For the period from January 1, 2024 to June 30, 2024, taxable persons may provide employees for a specific month only food vouchers in paper form under Art. 209 of the Law on Corporate Income Taxation or only food vouchers on electronic media under Art. 209a of the Law on Corporate Income Taxation.
Electronic slip
In the Road Traffic Act, it is added that an electronic slip or a criminal decree, the fine or the property sanction for which they have been paid, are also considered to have been served, and the date of payment is considered to be the date of service.
Transport of goods with high fiscal risk
Amendments have been made to the Tax and Insurance Procedural Code regarding the transportation of goods with a high fiscal risk. A person who transports such goods is required, when carrying out fiscal control, to declare in advance data on the transport of goods with a high fiscal risk.
