02.01.2021

What tax changes take effect this year

From this year, a number of tax changes come into force, which affect both companies and citizens. People who decide to renovate their home will benefit from tax breaks. They will be given only for the money given for the work of the masters.

For this purpose, however, they must issue a document, if they are a company, for the price of the work done. If they are natural persons, their data will have to be present in the declaration. Such documents are not attached to the declaration itself, but the submitter must keep them and present them during an inspection by the NRA.

The amount of the relief is up to BGN 2,000 per year. In case of co-ownership of the dwelling, the individual owners can share this amount, as each declares his share, but again the total value should not exceed the maximum. It is deducted from the tax base when filling in the declaration. This relief cannot be used by companies in the commercial activity of which the dwelling in question is included.

But if only the registration address of the company and that of the individual match, then there is no problem to use the relief. The property must be in Bulgaria. It is important to know that the amount can be deducted when declaring income for 2021, ie it will be able to be entered in the declaration in 2022.

There will now be tax rebates for raising a child. They will be used for income in 2021. That is, for those who file a tax return - in 2022, when they fill it out, and for those who will use the assistance through their employer, that is, they are only on an employment contract and have no others, at the end of 2021

The parents of 1 child will be able to deduct from the tax base BGN 4,500, of 2 children - BGN 9,000, and of 3 or more children BGN 13,500. The assistance for raising a child with a disability is reduced by the tax base by BGN 9,000 BGN 450 That is, for raising 1 child in the family budget are conditionally returned BGN 450. The amount will still depend on how much and what other income is declared.

Food vouchers in 2021 will be up to BGN 80 per employee in the company. Together with the additional voluntary insurance and some insurances such as "Life", they serve as a tax relief, as their value is deducted from the tax base. However, this relief can be used only by those for whom there is no obligation that has entered into force at the date of declaration, which will be enforced. A reference to the available liabilities can be downloaded from the NRA website and experts advise to keep it.