29.11.2021

WHAT AMOUNTS CAN BE REFUNDED FROM TAXES

By the end of December, we want relief for children through an employer

Parents of children and children with disabilities will be able to benefit from new higher tax reliefs. The tax rebate is significantly higher than in previous years and will apply only once to income from 2021.

In order to benefit from tax relief, a natural person (including a sole trader) must have received income taxable with annual taxes in 2021 (tax on the total annual tax base or tax on the annual tax base for income from business activity as a sole trader).

People without income, or only with non-taxable ones such as maternity benefit, for example, as well as only with income taxable with final and / or patent tax, cannot benefit from the benefits, but this can be done by the other parent, added the NRA.

For this year, the amounts by which it is possible to reduce the total annual tax base when using tax relief for children are: BGN 4,500 for one child, BGN 9,000 for two children and BGN 13,500 for three or more children. For raising a child with disabilities, the reduction for this year is BGN 9,000. The conditions for using the tax benefits for children and children with disabilities remain unchanged.

They are described in detail on the website of the National Revenue Agency, and next week more information will be published on the Facebook page of the ministry. One of the most important requirements for the application of the relief is that the persons have no obligations subject to enforcement. The NRA advises citizens to check their personal tax account online for liabilities with a personal identification code before using tax relief to avoid inconveniences.

Tax breaks can be used in two ways, as before. One is by filing a declaration with the employer under the main employment contract in the period from November 30 to December 31, 2021. In this case, the employer can refund the tax by the end of January 2022.

The second option to use the tax reduction is by submitting an annual tax return to the NRA within January 10 to May 3, 2022, and the amounts will be refunded after inspection by the Revenue Agency within 1 month after filing the return.

Detailed information about the tax reliefs is available on the website of the Revenue Agency www.nap.bg, the Facebook page of the department, and a telephone consultation on these issues can be made with the Information Center of the NRA by phone: 0700 18 700 and email: infocenter@nra.bg.

29.11.2021

WHAT YOU NEED TO KNOW IF YOU ARE INSURED FOR A SECOND PENSION

Pension companies are required to send a paper statement on the individual account of their clients once a year - until the end of May.

When submitting an application, the user can cancel the paper version of the statement on his individual account and receive it in electronic form.

This is stated in the updated Program for Consumer Protection of the Non-Banking Financial Sector for the Period 2021-2024, adopted by the Financial Supervision Commission (FSC).

Insured persons can also check their personal account through the website of the respective pension fund, after receiving an individual code.

Customers have the right to request additional statements. Some pension companies have developed procedures in cases where the accuracy of the data in the statement on the client's individual account is disputed.

In the area of ​​pension insurance, the protection of client assets is ensured by separating the assets of the pension company from the assets of the funds managed by it.

An additional guarantee for consumers is the obligation of the pension company to have a contract with a custodian bank.

According to the Social Security Code, the boards of trustees of pension insurance companies are obliged to consider and respond to the complainants in writing within 2 months from the date of receipt of the complaint.

Pension insurance companies (PICs) maintain up-to-date websites on which the user can find out about the pension fund he is interested in and receive other information in connection with the supplementary pension insurance. The regulations for the structure and activity of the funds managed by the pension companies are also published on the FSC website.

With the amendments to the Social security code (SSC) and with the adoption of ORDINANCE № 61 on the requirements for advertising and written information materials and web pages of pension insurance companies, a requirement was introduced for informing the insured persons through advertising and information materials for the supplementary pension insurance funds. the assets of the fund are not guaranteed a positive return, but the funds deposited in the individual accounts in the universal pension fund (UPF) are retained in full.

With the amendments to the SSC, two new funds were created: a fund for payment of lifelong pensions and a fund for deferred payments. An obligation has been created for the pension insurance companies to set aside a reserve to guarantee the gross reserve of the contributions to the UPF. An opportunity was created for the insured person, who has acquired the right to a pension from UPF, to change his participation once and to transfer the accumulated funds to his individual account or the amount supplemented by a reserve for guaranteeing the gross reserve of UPF contributions, which of the two amounts is -large, in another relevant fund managed by another pension insurance company.

The insured person in an occupational pension fund (OPF), who has not acquired or exercised his right to early retirement, may upon granting a pension for insurance length of service and age under Part One of SSC or upon reaching the age under Art. 68, para. 3 to receive once or in installments the accumulated funds on the individual account or to transfer them to UPF or VPF.

Pension companies calculate and publish information on the value of one unit of the respective pension funds on a daily basis. The data on the value of the units of all pension funds are published on the FSC website.

The portfolios of the companies are also published on a quarterly basis. The annual audited financial statements of the PIC are published on the FSC website.

26.11.2021

WHAT SOCIAL BENEFITS CAN WE RECEIVE UNTIL THE NEW YEAR?

For the first time, Bulgaria is in a pandemic wave without a lockdown, which is why the economic consequences of the pandemic have faded into the background. However, the government continues to distribute millions in the form of benefits to affected employees, companies and parents. At the same time, there is an application for the additional support of BGN 300, with which the official cabinet is trying to put out the fire of the more expensive energy carriers. What financial aid is available for people on the threshold of the second pandemic winter is summarized by the Consultancy Center - Berkovitsa.

Keep me +

As of November 11, the measure under which compensations are paid for employees on forced unpaid leave due to temporary restrictions is reopened. They are entitled to receive 75% of their insurance income for July. This support is already provided to self-employed persons whose activities have been suspended due to the emergency - a category that was excluded from almost all measures at the beginning of the pandemic.

It should be borne in mind that this aid is provided for only 90 working days this year. The latest edition of the measure covers unpaid leave used between 7 September and 31 December. The application is now only online, and the compensations are paid by the National Social Security Institute. The provided financing is BGN 100 million, and the expected scope - 60,000 workers, employees and self-insured. All about the scheme, see the website of the Employment Agency.

Benefits for parents

Parents of children under 14 who do not attend school, nursery or kindergarten due to the anti-epidemic restrictions are entitled to monthly targeted assistance in case they are forced to go on unpaid leave because they cannot work remotely, they do not have the opportunity to use paid leave and are not on sick leave.

For families with one child the amount of assistance is equal to the minimum wage - BGN 650. For families with two or more children the assistance is 150% of the monthly minimum wage or BGN 975.

In case the distance learning is introduced for a period of more than 10 working days of the month, the aid is received in its full amount. If the restrictions are for a period of 6 to 10 working days of the month, for families with one child the amount of assistance is BGN 325, and for families with two or more children the amount of assistance is BGN 487.50. With restrictions limited to 5 working days days of the month for families with one child the amount of assistance is BGN 162.50, and for families with two children - BGN 243.75.

There are some conditions with this help. The average income per person in the family must be less than or equal to 150% of the minimum wage or BGN 975. This means that in order to be entitled to such support from the state, a family with one child must have a total income of up to 2925 BGN, and with two children - up to BGN 3900.

Parents who have lost their jobs but are not entitled to unemployment benefits or the amount of which is lower than BGN 975 are entitled to such financial support. The assistance can also be used by self-insured people who cannot work due to anti-epidemic restrictions.

Applications for this support shall be made no later than the end of the month following that for which restrictions have been imposed. As schools closed en masse in October, affected parents should keep in mind that they can claim compensation until the end of November. For the November days, of course, the application deadline will be until the end of the year.

So far, 53,294 families have benefited from this assistance, and it has been operating for a little over a year - it was introduced after several unsuccessful attempts in September 2020. For this year, the budget of the measure is BGN 103 million.

All about this measure, see the website of the Social Assistance Agency.

BGN 300 for heating

These days, the acceptance of documents for the new heating aid, which will be given to people who have almost missed the classic energy support, has begun.

The right to receive it will have people and families who have been denied targeted heating assistance for the upcoming winter season due to exceeding the defined differentiated income by up to BGN 30 or due to failure to meet the requirement for 6-month mandatory registration as unemployed in the Labor Office directorates. For them, the granting of the aid will become official and they do not need to submit documents again.

People who meet the same criteria but have not submitted documents within the set deadline of October 31, 2021 will also be able to benefit from this support. The differentiated income is determined according to the type of family/household and is described in the ordinance for the target heating aid.

Applications for this assistance were submitted by 23 November, and it is possible to do so online. The application declares the income from April to September, and official income notes must be attached to it. It is recommended that applicants indicate a bank account, as the amount will be paid once in December. From 09.12.2021 to 23.12.2021 in the post offices of Bulgarian Posts EAD will be paid a one-time financial assistance for heating of persons and families from vulnerable groups.

The government has allocated BGN 15 million for this measure, and it is expected that these funds will be used to support 50,000 households. For all the help, see the website of the Social Assistance Agency.

26.11.2021

THE THIRD DOSE OF VACCINE WILL BE MANDATORY FOR TRAVEL TO THE EU

The European Commission has announced new rules for travel between EU countries, according to which the third dose of vaccine will soon become mandatory for green certificates to be valid. To this end, the validity of existing certificates has been extended from 6 to 9 months in order to enable countries to provide a booster dose of those already vaccinated over the next three months. Once it is given, the new certificate will not expire, but Brussels reserves the right to introduce it once scientific evidence is available that the effectiveness of the vaccine declines beyond the third dose.

Citizens without vaccination will have to take a test immediately before departure and after arrival, and will be quarantined regardless of the result if they come from countries in the dark red zone. So far, more than 650 million certificates have been issued in the EU.

In the weeks before Christmas, Europe is facing a new pandemic wave, and each country's attempts to curb the spread of the infection have built an entire Tower of Babel of measures that differ not only from country to country but also across the border and inland. from countries. In practice, there are currently 3 different requirements regimes in place in many places, and restrictions are expected to be tightened everywhere in the coming days. The measures are different, but the direction is the same - tightening the hoop around the unvaccinated and including the booster dose in the certificates.

At foreign borders

A green certificate of completion of a vaccination, illness or negative test is still sufficient for travel to most countries in Europe. In the coming days, however, this may change as more and more countries impose stricter restrictions. And at the moment some countries have additional requirements for those arriving from Bulgaria.

France has been monitoring our country for a month and requires those who have not been vaccinated or who have been ill to have a test done up to 24 hours before departure, and not, as usual, up to 72 or 48 hours earlier. From December 15, the country introduces an additional condition for people vaccinated with "Jansen" aged 65 and over - they must have a booster dose to receive a valid Covid certificate.

For a month now, Bulgaria has been a risk region for Germany, which requires quarantine from people without vaccination/illness (with the right to cancel).

Austria is blocking tourist travel at least until December 13, as it is in full lockdown. Italy, Spain and Portugal currently accept the usual three options - illness, vaccination or a negative test. In Italy, however, the list of countries is due to be revised on 15 December.

The UK has a completely different system, requiring even vaccinated people to have a reserved test with a private company, which must be done by the end of the second day of arrival. For people without a completed vaccination course, there are three tests - one within 72 hours before arrival and two more PCR tests on the second and eighth day after arrival.

26.11.2021

INCREASING FINANCIAL LITERACY IS OUR NATIONAL PRIORITY

"Improving the financial well-being of Bulgarian citizens by increasing financial literacy is our national priority." With these words, the Deputy Minister of Finance Monika Dimitrova-Beecher opened the Annual Meeting on Financial Literacy within the Joint Project of the Organization for Economic Cooperation and Development (OECD) and the Ministry of Finance of the Netherlands in the field of financial literacy.

According to him, Bulgaria is a participating country. Our country co-hosted the event together with the OECD and the Ministry of Finance of the Netherlands, which was held online under the title "Consumer Finance and Financial Literacy in the Digital Age - Opportunities and Challenges for Southeast Europe". In her welcome address, Deputy Minister Beecher said that the rapid development of technology and digitalisation, as well as the pandemic, have changed our lives and the way we perceive the world. "Consumers today have unlimited remote access to financial services and these opportunities have their challenges, which include the need to better address risks in the digital environment. "Digitalization and education must go hand in hand, which will allow us to be more flexible," she said. Thanks to all parties involved, the National Financial Literacy Strategy and its Action Plan (2021-2025) were adopted by the Council of Ministers earlier this year. "We know that we face the most difficult and responsible task - the effective implementation of the Strategy and measures in the Plan," said Deputy Minister Beecher.

The event was also opened by Flor-Ann Messi, Deputy Director of the OECD's Financial and Corporate Affairs Directorate and Executive Secretary of the OECD's International Financial Education Network (OECD/INFE). "Digitization is leading to a rapid change that we can call a revolution. We need to use digitalisation and digital distribution channels as tools to support many complementary goals and make financial education more efficient, flexible and tailored to the needs of citizens,” she said.

The joint project of the OECD and the Ministry of Finance of the Netherlands in the field of financial literacy aims to provide technical support for the development and implementation of effective initiatives in the field of financial education and literacy adapted to the specific needs of the participating countries. The other goal is to encourage the sharing of knowledge and good practices between beneficiaries. Bulgaria participates in the project with six other countries - Romania, Croatia, the Republic of Northern Macedonia, Montenegro, Moldova and Georgia, and the project coordinator for our country is the Ministry of Finance, to which an Interdepartmental Working Group has been formed. It includes representatives of government institutions, supervisors and non-governmental organizations responsible for the preparation and implementation of the national strategy in the field.

26.11.2021

WHAT THEY DECIDED ON THE MINIMUM WAGE, MATERNITY AND PENSIONS NEXT YEAR

The budget for 2022 must ensure that pensioners from 1 January next year will not receive a lower pension than they currently receive. From now on, the minimum wage will be determined as a percentage of the average, and the maternity benefit in the second year for 2022 will be the same as the minimum wage. The parties, which are discussing measures in the field of labor and social policy, have united around this.

The moderator of the discussion Asen Vasilev summarizes the proposals of all participants in the discussion.

From December 25, important changes enter the pension system - the percentage per year of insurance, without the so-called conversion, increases from 1.2 to 1.35. With this, the pensions will increase, but probably next year the supplement of BGN 120 will be dropped. It must be ensured that there will be no pensioner with a lower pension than the one he currently receives, all parties believe. All pensions will follow the indexation under the Swiss rule.

The parties propose to make a full analysis of the pension system within six months in order to fairly index pensions and create a new update mechanism that is sustainable over time. The proposals of the BSP for recalculation of the pensions with average insurance income for 2018 were discussed again, as well as an update every five years, which is requested by the ITN.

The minimum wage must be a percentage of the average, in accordance with the European directive, and the directive stipulates that the minimum wage be 50 percent of the average. According to the parties, this is difficult to achieve from 2022, but the goal is to achieve it by the end of the mandate. A mechanism for its determination will be developed, and the state, trade unions and employers will participate in the development.

The maximum insurance income will be increased, there must be a ceiling, but the maximum insurance income will be determined as a coefficient to the average salary, the parties decided. Linking the minimum unemployment benefit to the minimum wage after consultation with the social partners is also proposed by the political forces.

Legislative regulation of telework will be made.

The parties want motherhood in 2022 for the second year to be as much as the minimum wage. A discussion has arisen as to whether working mothers should receive the same amount in the second year as the unemployed, and the thesis of the representatives of "Democratic Bulgaria" is that the money should be the same for both working and non-working, as most children in kindergarten of working mothers from the big cities, they cannot get into either a state or a private nursery and the parents pay over BGN 700 per month for the care of the children.

The parties also united on the topic of state kindergartens and kindergartens being free for children. There will be a voucher system to support parents with unaccepted children from the age of ten months. It is also envisaged to expand the possibility for alternative care for children when there are qualified care specialists, as there is currently a problem with the lack of places to build kindergartens.

The focus of the financial resource must be on expanding the seats. Elisaveta Belobradova from "Democratic Bulgaria" pointed out that currently the mothers are planning the birth of a second child so that he can use the advantage of the first when applying for kindergarten. She warned that a caesarean section had even been performed a month earlier to include the children in the ranking, which gave them an advantage.

ITN asked the measures for the kindergartens to be in the context of the regional policy, not to concentrate families with children only in Sofia.

The scope of energy assistance will be expanded, energy poverty will be defined. It is expected that the possibility for deferred payment of bills will be introduced. A minimum wage will also be given to the self-employed in areas unable to work due to restrictive measures. Antiquity measures to help employers will continue next year.

26.11.2021

THEY LAUNCH CHEAP LOANS FOR RURAL COMPANIES

The Fund of Funds has entered into an agreement with First Investment Bank (Fibank) for the management of the financial instrument "Rural Financing".

The funds are provided by the Rural Development Program 2014-2020 (RDP), through the European Agricultural Fund for Rural Development and amount to BGN 38 million. The financial institution selected by the Fund of Funds is expected to add as much private capital to the public resource, so that the total amount of loans will exceed BGN 70 million.

The instrument is aimed at farmers and small and medium-sized enterprises developing business in rural areas, who will have the opportunity to benefit from funding under the instrument until 31 December 2023.

The loans will be provided for agricultural and non-agricultural activities in rural areas to increase the competitiveness of the agricultural sector, as well as to promote social inclusion and support for the sustainable development of agricultural holdings.

The instrument will cover both new stand-alone investments and grants to co-finance projects supported by grants with the following funding characteristics:

- low-interest loans in EUR or BGN under favorable conditions for investment purposes and working capital, which complement the investment and are related to it;

- amount of investment loans up to BGN 2 million. Complementary working capital financing up to the higher of the following values: 30% of the total investment to the respective final recipient or BGN 391,166, in compliance with the requirements and restrictions for state aid;

- repayment period up to 10 years;

- low interest rates on the financing, as no interest and management fee will be charged on the RDP funds;

- low requirement for deductible of the final recipient.

After the signing, the product will be structured under the Rural Financing Instrument by First Investment Bank and its active supply to final recipients will start.

25.11.2021

SEE HOW TO CALCULATE HOW MUCH YOU GET IN AN HOUR OF WORK

What is the total cost per hour or month worked? The slips that workers receive at the end of the month most often indicate the net salary, and in their books the employers include their part of the insurances, which form the total labor costs.

Apart from them, other factors play a role on the final salary of the employees and the actual full labor costs - hospital, emergency shifts, food vouchers. It is these factors that the new calculator of real wages and real labor costs, developed by the Institute for Market Economics (IME) and available on the website http://cenanarabotnika.org/, adds to the account.

The calculator was developed in the context of an international initiative implemented by the IME together with non-governmental organizations from Slovakia (INESS), the Czech Republic (Liberal Institute) and Poland (FOR), with a common approach and methodology that reflects the specifics of local labor legislation and regulations. The work is supported by the Friedrich Naumann Foundation for Freedom, according to the Institute for Market Economics.

The "Employee Cost" calculations take into account all expected factors of the employer's gross salary and expenses - pension, health and other social security contributions, as well as income taxes. To these are added several other factors, which mainly concern the time worked - night work, work on Saturdays and Sundays or on public holidays, for which multipliers are applied to the basic hourly wage.

The calculator also takes into account cases in which the employer finances the lunch (or in general the meals) of its employees, as well as the used sick leave and the additional days of paid leave outside the ones provided by the labor legislation. Account is also taken of cases where employees receive food vouchers - a common practice of supplementing income that remains outside the scope of taxation. At this stage, the calculations are valid only for the third category of labor, which includes most workers in Bulgaria.

Of particular importance here is the difference between the final hourly rate and the announced hourly wage - only with the addition of a few night and holiday shifts, a few days of paid leave above the minimum and food vouchers, the difference between the announced hourly wage and the final hourly rate becomes almost double.

Why is this calculator useful?

First, it clarifies the total labor costs and thus allows for a realistic assessment of the cost of labor. Also, activating the calculator at the beginning of a government's term will easily show the direction of its policies - any change that increases the cost of rent will turn on the "red light" for all observers.

Clarity about the full cost of labor will also help to form an opinion in the discussions on the adoption of the state budget, but also in any legislative initiative related to labor or social security legislation. The calculator will also be useful for immediate assessment of the effect of proposals for regulatory changes of trade unions and employers' organizations.

25.11.2021

THE HEATING AID WILL BE PAID AT THE POST OFFICES

From 09.12.2021 to 23.12.2021 in the post offices of Bulgarian Posts EAD a one-time financial aid for heating of persons and families from vulnerable groups will be paid.

The funds are paid to overcome the consequences of rising fuel prices and the epidemic emergency.

Eligible persons can receive assistance at post offices only during this period of the current year. Its receipt cannot be postponed for 2022.

25.11.2021

THE EIGHTH EDITION OF THE "PROFESSION BAZAAR" WILL PRESENT 30 PROFESSIONS WITH A FUTURE FROM 15 LEADING COMPANIES

The eighth edition of the "Bazaar of Professions" will take place on November 26 and 27. For the second year in a row, the iconic career guidance event, organized by the Bulgarian Network of the UN Global Compact, will take place online. There are 15 companies that have accepted the challenge to present fascinating key professions for them and for the future, the organizers announced.

The event will strengthen its position at the largest exhibition for career guidance and will give children and young people between 10 and 18 years, their parents and teachers from all over the country, to get acquainted with a wide range of professions and prospects for realization. "Profession Bazaar" will include meetings with experts visiting a studio, a kaleidoscope of video tours of the participating companies and discussion panels on the future of the professions, with the participation of established specialists. The interviews and discussions will be led by young journalists from TeenStation.

Among the palette of professions in the program is a kind of "parent meeting". It will be dedicated to "Career support for students - how and when to help without interruption?", With the participation of Gergana Rakovska from the Business Foundation for Education.

The professions in information technologies are becoming more and more important for every sphere of our economy and life. The professions of cybersecurity specialist, business intelligence, cloud engineer and video game developer will be presented in a discussion between experts. Virtual reality and robotics programmers will compare their professional knowledge and skills, charting a path for anyone who wants to dedicate themselves to the profession.

Among the most anticipated meetings is the one with the profession of science communicator, as well as with professions in the field of mining and energy - a specialist in energy efficiency and an automation engineer.

The young people will also get acquainted with the professionals who study and care for the earth - geologist and ecologist, they will understand why the role of the energy manager is key to the functioning of each store. Each expert needs specialists in marketing, sales, supply and acquisitors, will take their rightful place with a special panel.

The panel "From people to people" provides a meeting with those important professionals whose professions are of paramount importance for our lives, but are not always in the spotlight. A pharmacist, teacher and volunteer and donation specialist will share the challenges and satisfaction of their work. Young people will look behind the creation of news and will be able to ask questions to journalists. Creative professions, such as actor, writer and cosplayer, also have a place in the Professions Bazaar.

For the first time during the event there will be a conversation about entrepreneurship. In the panel discussion "The future belongs to the entrepreneurs" Ognyan Trayanov, chairman of the Bulgarian Network of the UN Global Compact, will present what it is like to be an entrepreneur.