24.08.2022

HOW TO RECEIVE THE CHILD TAX CREDIT THIS YEAR

The budget amendments in July introduced new, higher tax breaks for children. Parents will be able to reduce the tax base of their annual income by BGN 6,000 for one child (instead of BGN 4,500).

For two children, the preference jumps from BGN 9,000 to BGN 12,000, and for three or more - from BGN 13,500 to BGN 18,000. This means that families will be reimbursed taxes in the amount of BGN 600 for one child, BGN 1,200 for two and BGN 1,800 for three or more children.

These tax reductions will be available already in the second half of the year, because the possibility to make discounts in advance every three months was voted.

Thus, for the period July-September, one parent will receive BGN 150, and for October-December - another BGN 150. For this purpose, however, he must submit a declaration to his employer. If the income of one of the parents does not allow such a large tax relief, it can be shared between the two. For the months of October-December 2022, the tax reliefs are used when calculating the annual tax base.

The employee chooses once whether to receive the advance tax relief by submitting a declaration to the employer. In it, he must indicate that the other parent will not use the advance reduction for the relevant tax year.

The tax reliefs for 2022 can also be used by reducing the monthly tax base for income from employment relationships, as follows:

1.the monthly tax base for the month of July is reduced by the sum of the amounts for the months of January-June for:

a) one minor child - in the amount of BGN 500 per month;

b) two minor children - in the amount of BGN 1,000 per month;

c) three or more minor children - in the amount of BGN 1,500 per month;

d) a child with 50 and over 50 per cent type and degree of disability - in the amount of BGN 1,000 per month.

2.the monthly tax base for the month of October is reduced by the sum of the amounts for the months of July-September for:

a) one minor child - in the amount of BGN 500 per month;

b) two minor children - in the amount of BGN 1,000 per month;

c) three or more minor children - in the amount of BGN 1,500 per month;

d) a child with 50 and over 50 per cent type and degree of disability - in the amount of BGN 1,000 per month.