30.03.2021

WE USE A 5% TAX REBATE IF WE FILE THE INCOME TAX RETURN BY MARCH 31

For the first time this year, the National Revenue Agency provides pre-filled tax returns for personal income taxation. Every citizen has the opportunity to compare the officially entered data in the electronic submission of declarations. The pre-filled declarations are available on the website of the Revenue Agency from March 16, the NRA announced.

"The two big changes are data on income from online trading, which we have filled in in advance. And the second is, if there is overpaid tax, it must explicitly and is expected to indicate the declarant, the individual, what will happen to this overpaid tax - whether it should be refunded to a bank account, or maybe, which is a new possibility, it be used in the future", explained the spokesman of the National Revenue Agency Rosen Bachvarov.

In addition to the data on the amounts paid from labor income, the tax authorities fill in the declarations and the income from commercial transactions. Here, those who complete the declarations must indicate whether these are sales of their personal belongings as individuals - the TV, the child's previous ski boots, etc., or whether they are acting as traders, whether or not they are registered as such. It is important to clarify that people who sell personal belongings electronically, and not created or bought for resale, have neither an obligation to declare them nor owe taxes on them.

Data from car transactions, as well as from the purchase of work experience are also pre-filled in the declaration. The sale of a car after it has been owned for less than 12 months is subject to taxation.

There will be no data in the pre-filled declarations for renting out properties to individuals, which is a commitment of the landlords to declare.

In real estate transactions, the rule is that the sale is not taxable if it has been owned for at least 3 years by the seller and is used as a main home. The sale of up to 2 properties, which were owned by the executor of the transaction for at least 5 years, also remains outside taxation.

The National Revenue Agency reminds that the benefits for children in this tax campaign are in the amount of last year - BGN 20 per child. The new, much higher thresholds - from BGN 450 per foster child, which were adopted by the government, will apply to income received this year, and will be reflected in the declarations submitted next year.

The personal income tax campaign, which began in January, will end on May 5, although the deadline for declaration and payment is April 30, due to the Easter holidays. For failure to file a tax return, the fine is BGN 500. For declared incorrect data - 1000 BGN.

It is no longer necessary to submit official notes in more than 90% of cases - for example, for fees for civil contracts, decisions from the LEMC, declarations for tax relief for children to the other parent, said Bachvarov.

People who have income both as individuals and as sole traders must submit a declaration in the second capacity, indicating in it the already declared in the declaration of personal income. There is a possibility for a 5% discount on the additional payment tax, but not more than BGN 500. In order to use it, there must be no tax liability, the tax must be declared electronically and paid before March 31.

There are less than two days left in which individuals can use the 5% discount on the top-up tax on their annual tax return. In order to take advantage of the discount, the citizens must submit their annual tax return by March 31, have no enforceable public obligations, as well as pay the full amount of the additional tax, reminded by the NRA.

The fastest and easiest way to submit the annual tax return is through the portal for electronic services of the National Revenue Agency, accessible with a personal identification code (PIC) or a qualified electronic signature (QES). The revenue agency advises consumers to check online for old debts.

The deadline for declaring income and paying the additional tax this year is May 5, 2021, due to the weekends around the Easter holidays. In addition to electronic means, tax returns can be sent by post, submitted on the spot at the NRA office or at some post offices, where an incoming number will be issued directly.

Information for filling in and submitting tax and insurance declarations and depositing amounts to the budget can be obtained from the NRA website - https://nra.bg/ or by phone: 0700 18 700 at a price according to the tariff of your telephone operator.

29.03.2021

The budget has been increased and the deadline for applications under the procedure "Adult Literacy-2" has been extended

By order of the Head of the Managing Authority (MA) of the Operational Program "Science and Education for Smart Growth" 2014-2020 (OPSESG) the budget of procedure BG05M2ОP001-3.020 "Literacy of adults-2" has been increased and the deadline for application under the procedure has been extended.

After verification by the MA for the available free resources under Priority Axis 3 "Educational environment for active social inclusion" of OPSESG in order to achieve the set indicators and final goals, and funding of the maximum number of quality projects, the budget of procedure BG05M2OP001-3.020 "ADULT LITERACY - 2" has been increased to BGN 15,662,042.93.

The new deadline for submission of project proposals, signed with a qualified electronic signature through UMIS 2020, is April 20, 2021, 17:30.

The amended Conditions for application are published on the following Internet addresses: http://opnoir.bg, https://umis2020.government.bg and https://www.eufunds.bg.

29.03.2021

UNEMPLOYMENT IN THE EURO AREA REMAINS AT 8.3%

Unemployment in the euro area remained unchanged at the end of last year. In December, the unemployment rate remained at 8.3%, a month earlier, according to Eurostat.

Compared to the same month last year, however, the rate is 0.9 percentage points higher. The decisive factor here is the measures to curb the coronavirus pandemic, which have hit the economy hard.

In general, the effects of the crisis on the labor market are limited. During the coronary crisis, the unemployment rate rose to its highest level of 8.7% in July 2020. For comparison - during the debt crisis in the euro area, the share of the unemployed temporarily rose above the limit of 12 percent.

The effects of the coronavirus are mainly offset by government support programs. In Germany, for example, rising unemployment is limited by generous, long-term part-time regulations. Eurostat estimates that 13.67 million people were unemployed in the euro area in December 2020. There were 16 million unemployed in the European Union, representing a 7.5% unemployment rate. For Bulgaria, the rate amounts to 4.8 percent - a slight decrease compared to the reported month earlier 5 percent, but an increase compared to the reported 4.2 percent a year earlier.

In December 2020, 3.138 million young people (under 25) were unemployed in the EU, of which 2.590 million were in the euro area. In December 2020, the youth unemployment rate was 17.8% in the EU and 18.5% in the euro area, compared to 17.5% and 18.1% respectively in the previous month. Compared to November 2020, youth unemployment has increased by 41,000 in the EU and by 36,000 in the euro area. Compared to December 2019, youth unemployment increased by 438,000 in the EU and by 353,000 in the euro area.

Unemployment remains highest in the chronically ill economy of Spain - 16.2 percent, while the lowest is in the Czech Republic, where only 3.1% of the working population is unemployed.

29.03.2021

ON AVERAGE, SIX UNEMPLOYED PEOPLE COMPETE FOR ONE JOB

An average of six unemployed people are competing for one vacancy - according to the latest data from the Employment Agency at the end of February 2021.

In 17 districts the unemployment rate is above the national average, with the highest values ​​reported in the Northwestern region - Vidin, Montana and Vratsa.

The strongest competition is in the districts of Razgrad and Vidin, where 15 and 12 unemployed people compete for one vacant position, respectively.

At the other pole are Sofia-city and Ruse - with 4. The data show that for comparison at the end of January in the whole country 8 people competed for a vacancy, and at the end of December last year - 9.

According to social experts, the reason for the improvement of the picture on the labor market is mainly the anti-crisis measures taken to preserve employment.

According to the latest data, the unemployment rate in the country is 6.9%. Traditionally, its lowest level is in Sofia-capital - just under 3%, and highest - in Vidin district - 14%.

29.03.2021

CLOSED BUSINESSES CAN NOW APPLY FOR STATE AID

Economic sectors that have been closed due to current restrictions could apply for state aid this week. This was announced by the Minister of Economy Lachezar Borisov:

"At the same time, while the companies are applying, we will expect the notification from the EC, because without notification of the specific state aid we cannot proceed with its implementation."

Minister Borisov said that most of the businesses will be supported by 20%, and the rest - by 10% of the lost turnover.

The support is through the National Revenue Agency.

For its part, the NRA announced important news for the companies that received support in the COVID crisis. All approved applicants for working capital support, affected by the temporary anti-epidemic measures, are required to submit a report on the funds used, warned the National Revenue Agency (NRA).

This will be done through the module "Communication with the MA" of the Information System for Management and Monitoring of EU Funds in Bulgaria (UMIS 2020). The term in which the applicants can use the received support (to make the eligible costs) is 3 months from the date of granting the grant. Within one month after this deadline, companies must report on the funds used.

An important clarification is that if there is no report, companies will have to repay the funds.

What is special about the applicants who participated in both Phase 1 and Phase 2 is that they have to submit a joint report, as the duration of each application for support is 3 months from the date of the grant, but the reporting period in this case is 1 month after the deadline for spending the funds received for support from phase 2. The applicants who will participate in the current third phase of the project will submit their reports for it separately.

More information about the program can be found in the section "Support through working capital for SMEs" on the website of the NRA or on the phone of the Information Center of the NRA on 0700 18 700.

26.03.2021

OUR LABOR RIGHTS DURING A LOCKDOWN

Bulgaria is in its third consecutive lockdown due to the COVID-19 epidemic and new restrictive measures are in force throughout the country, closing almost everything - schools and kindergartens, theaters, restaurants, malls, gyms and more. What are the rights of working Bulgarians during a lockdown.

According to the legislation in Bulgaria, the provisions of the Labor Code and other regulations governing employment relationships, the measures are valid throughout the country and cover all workers, regardless of whether they perform activities from their permanent job or perform it remotely (eg regime at the home office).

This means that all legal rights related to pay, working hours, breaks and holidays, benefits, safe working conditions, etc., should be applied in exactly the same way as their application in a normal working environment. The commitments of both the employee and the employer to the observance of the rights and obligations under law and contract between them should be unchanged.

In the conditions of lockdown and emergency epidemiological situation, additional legal provisions are in force and in force, regulating the following labor rights, the most important of which are the following:

• When due to a declared state of emergency or declared epidemic emergency by order of the employer or by order of a state body the work of the enterprise, part of the enterprise or individual employees is terminated, the employer has the right to provide paid annual leave and without his consent, including of an employee who has not acquired 4 months of work experience.
• The employer is obliged to allow the use of paid annual leave or unpaid leave in case of a state of emergency or a state of emergency at the request of:
• a pregnant worker or employee, as well as an employee in an advanced stage of in-vitro treatment;
• mother or adoptive mother of a child up to 12 years of age or of a child with a disability, regardless of his / her age;
• an employee who is a single father or adoptive parent of a child up to 12 years of age or of a child with a disability regardless of his / her age;
• an employee who has not reached the age of 18;
• an employee with permanently reduced working capacity of 50 and over 50 percent;
• employed worker or employee;
• an employee suffering from a disease specified in an ordinance of the Minister of Health.
• Up to 90 working days unpaid leave will be recognized as length of service and health insurance rights will be uninterrupted in 2021 (this allows people to acquire and maintain insurance rights for pensions, maternity benefits, unemployment, illness) for more -long period of time.)
• People on unpaid leave will not lose their pension rights due to interruption of the internship. Workers must pay health contributions of BGN 26 per month in order not to lose their health insurance rights while on unpaid leave.
• The personal labor pensions are recalculated ex officio, and after January 1, 2021 the personal labor pensions will be recalculated ex officio, with the additional length of service acquired by the pensioner in the period after the granting or after the last recalculation of the pension. The official recalculation will take place from 1 April 2020.
• The term of the expert decisions of the Labor Expert Medical Commissions (LEMC) and the National Medical Expert Commission (NMEC) for determining permanently reduced working capacity/type and degree of expired disability has been extended during the state of emergency and the emergency epidemic. situation and their cancellation for three months.

     • LEMCs can make a decision only on documents, without on-site inspection.

26.03.2021

WHAT TO LOOK OUT FOR IN OUR EMPLOYMENT CONTRACT

Every person starting a new job is faced with his new employment contract and the clauses in it that he must sign. It is not uncommon for employers to include, in addition to the main clauses, additional clauses that place workers at a disadvantage compared to their rights under the law.

What to look out for when signing employment contracts.

The employment contract must be concluded in writing, and the employee and the employer receive 1 copy of it. The law has specified which are the obligatory clauses in it, as all other stipulations there are rebuttable in favor of the employee compared to the current legislation in Bulgaria.

The minimum requisites that must be settled by the employment contract are:

1. Employment contract number
2. Date of concluding the employment contract
3. Grounds for concluding the contract (Art. 67 - Art. 70, Art. 230 or Art. 235 of the Labor Code)
4. Name of the company, registered office and address of management
5. Company identification code (according to BULSTAT or VAT)
6. The three names of the manager of the company, permanent address and PIN
7. The three names of the employee, permanent address and PIN (it is not obligatory and correct to write other information from the employee's ID card)
8. Type and level of education of the employee (if required for the position)
9. Title of the position (from those listed in the National Classification of Occupations and Positions)
10. Code of the National Classification of Economic Activities
11. Place of work (the city where the work will be performed)
12. Duration of the working day or week
13. Duration of the contract (unless otherwise agreed, it is considered concluded for an indefinite period of time, it is invalid to conclude a fixed-term employment contract for more than 3 years, unless otherwise provided by law)
14. Amount of the basic and extended paid annual leave and of additional paid annual leave (the minimum paid annual leave is 20 working days)
15. The basic and additional permanent remunerations (the basic remuneration may not be less than the minimum wage for full-time work 8 hours per day; according to the Labor Code for each full year of service in a similar position must be a minimum of 0.6% of the length-of-service bonus to the basic salary and, unless otherwise agreed, the additional salary is considered to be 0.6% for each full year of service in a similar position; overtime work according to the ordinance on the structure and organization of wages)
16. Periodicity of payment of labor remunerations (unless otherwise agreed, according to the Labor Code, the employee's remuneration is paid twice a month - in advance and finally)
17. Obligation of the parties (Chapter Six of the Labor Code lists the standard obligations of the parties, the specific obligations of the employee are specified in the job description, which is an annex to the contract and must be served on entry)
18. Equal notice period for both parties upon termination of the employment contract (not more than 3 months, any other agreements are invalid, if not agreed, it is considered 30 days; if it is a fixed-term employment contract - no more than the balance until the end of the contract)
19. Commencement of performance of the employment contract - (up to 3 days after the conclusion of the employment contract, it must be registered with the NRA according to Ordinance № 5 of December 29, 2002 on the content and procedure for sending the notification under Art. 62, paragraph 4 of the Labor Code, the employee may not start work before receiving a copy of the documents for registration of the contract, otherwise the employer is fined and the employee can not be sure that he is actually employed and must not start work)
20. Signatures of both parties to the contract

The employment contract may also regulate other conditions, which, however, may not be more unfavorable for the employee than those established by law or by a collective labor agreement.

The date of commencement of work shall be certified (not before the employee receives a copy of the documents for registration of the contract with the NRA and not later than 7 days from the receipt of the documents for registration).

Upon entering the job, the employee must be familiar with the Rules of Internal Order in the organization, which is certified by a written declaration in free form.

The employment contract cannot be changed without the written consent of both parties (except for increasing the employee's remuneration, for which his consent is not required).

26.03.2021

FUNDS ARE PAID TO CLOSED BUSINESSES IN APRIL AND MAY AS WELL

"We have supported the business in the pandemic with nearly BGN 2 billion through the Ministry of Economy and the Ministry of Labor and Social Policy. The disbursement of anti-crisis funds will continue in April and May."

This was stated by Prime Minister Boyko Borisov during the extraordinary government meeting, the government information service announced.

Prime Minister Borisov noted the extremely good work of the National Revenue Agency, during which during the pandemic of COVID-19 were paid over BGN 75 million to nearly 7,000 companies in the closed sectors due to anti-epidemic measures.

Prime Minister Borisov was adamant that people's lives and health are most important because there is no functioning economy without healthy people, and added that everything possible is being done to support the sectors and their employees limited by the pandemic.

During the meeting, the Minister of Economy Mr. Lachezar Borisov reported to the Prime Minister on the scope and effect of anti-epidemic measures in Bulgaria. The Minister specified that of the nearly BGN 2 billion paid to the business so far, over BGN 750 million are through the Ministry of Economy through 10 different developed mechanisms, and through the MLSP - over BGN 1.1 billion.

"Regarding the current joint procedure with the NRA, the second phase of the working capital support program is underway. So far, the National Revenue Agency has paid over BGN 75 million to nearly 7,000 companies and 70% of these funds or over BGN 50 million have reached the restaurant industry," said the Minister of Economy.

Minister Lachezar Borisov stressed that apart from this assistance under the other measures, over BGN 20 million have reached the restaurant industry under the procedure for micro enterprises and the same amount will be provided under the procedure for medium enterprises.

Minister Borisov also informed the Prime Minister about the implementation of the measures for maintaining employment.

BGN 968 million have been paid so far under the 60/40 mechanism and over 300,000 jobs have been preserved. The anti-crisis measure was continued until the end of May 2021. Nearly BGN 150 million have been provided under measure 80/20, and the funds have preserved nearly 30,000 jobs in the Hotel and Restaurant, Transport and Tourism sectors.

Minister Borisov also said that the measure "Keep me" (75/0) continues, which provides a real 100% of the net remuneration of workers, as well as targeted assistance for parents with children under 14 who study at a distance.

"Through the Bulgarian Development Bank we also support individuals through interest-free loans. So far, 37,700 people have received this type of assistance, as well as 1,300 small and medium-sized enterprises, and the total intervention through BDB is BGN 360 million," the Minister of Economy also informed.

Mr. Lachezar Borisov pointed out that measures are to be introduced to transform the economy through the Recovery and Sustainability Plan. It is about the implementation of the measures under three funds in the amount of BGN 900 million. The expectations are that the funds for them will be used by the business within the next 2 years.

The funds are provided through the Technological Modernization Fund and represent a grant of small and medium enterprises in the amount of BGN 400 million, through the Green Transition Fund - another BGN 237,500,000 and through the Digitalization Fund - BGN 237,500,000. The emphasis is to improve the productivity of companies, their resource and energy efficiency.

"All the measures implemented by the government have had an effect. The reason for this is given by the state of GDP - according to this indicator Bulgaria did 50-60% better than the average for the EU and the Eurozone. I can give examples through the decline in GDP in Spain, which is 11%, in France - 8.1%, we are better represented by countries such as Austria and Hungary," said the Minister of Economy. According to him, our unemployment rate is below 7%, which is another proof that the balance between anti-epidemic and economic measures has been preserved.

26.03.2021

REQUESTS FROM EMPLOYERS FOR SUPPORT IN HIRING THE UNEMPLOYED ARE ACCEPTED

The acceptance of applications from employers who want to receive financial support in hiring the unemployed has begun, the Employment Agency announced.

Employers can apply to employment offices across the country until April 2, inclusive, to enjoy preferences under various employment and training incentives.

Financial support is provided under this year's National Employment Action Plan, which provides for employment subsidies for at least 1,965 newly hired unemployed and more than 200 mentors.

It is envisaged to pay monthly up to BGN 630 for salary and due social security contributions to each unemployed person for length of service or apprenticeship, or who has been staying at the Labor Office for more than six months under the age of 24 or over the age of 50. and lower education, unemployed mothers with children under five and other vulnerable groups.

Incentives offer options for both full-time and part-time work. The duration of the provided employment is different in the different measures and varies from 3 to 12 months.

Outside the started procedure, employers can apply for other preferences and financial resources for employment of certain groups of unemployed, as well as for conducting vocational training and training in key competencies of employees in micro, small and medium enterprises.

25.03.2021

THE STEPS FOR APPLYING FOR THE NEW DESIGN OF THE MEASURE "KEEP ME" HAVE BECOME CLEAR

The government has allocated an additional BGN 24 million and 600 thousand under the "Keep me" measure, which compensates workers in the economic sectors closed due to the pandemic.

In connection with an order of the Minister of Health for the introduction of temporary anti-epidemic measures for the period from 22.03.2021 to 31.03.2021, the Employment Agency informs all employers, workers and employees applying for the project "Keep me" about what need to do in the 10 days of lockdown.

Employers who have already submitted an Application for payment of compensation, have been approved and wish their employees to continue receiving compensation, do not submit a new Application. Employers deposit the following package of documents with the relevant Labor Office Directorate:

• Appendix 8 “Declaration for absence or presence of changes” (sample admission after 01.01.2021) for reporting the respective month;
• Appendix 3 “List” (sample admission after 01.01.2021) - for the respective month. The list should be signed with QES or on paper by the employer or an authorized representative of the employer (with a power of attorney attached), and must be submitted in electronic format (excel format);
• Annex 9 “Participation Cards” for the new period for all persons listed in Annex 3 “List”;
• Appendix 10 “Table for aggregation of information for participants”.

Employers who submit for the first time an Application for payment of compensations for the current period or for a previous period shall submit to the respective directorate "Labor Office" the following package of documents:

• Appendix 1 - Application - declaration (acceptance sample after 01.01.2021);
• Appendix 2 - Declaration by an employee (sample admission after 01.01.2021);
• Appendix 3 - List (sample admission after 01.01.2021) - the list should be signed with QES or on paper by the employer or an authorized representative of the employer (with a power of attorney attached), and must be submitted in electronic format);
• Appendix 9 - Participation card, filled in according to the Instructions for summarizing information from participation cards (Appendix 9A) and table for aggregation of information for participants (Appendix 10) - for the first and last reporting and for change;
• Annex I - Declaration for minimum and state aid, filled in according to the Methodology for received minimum aid.

Compensations under the procedure of the Council of Ministers № 325 dated 26.11.2020, amended and ext. with CMD № 418 dated 30.12.2020 shall be paid for the past month.

Eligible target group are:

• Persons employed on a basic employment contract;
• persons insured in sectors of economic activities, which fall within the scope of the List of economic activities for which temporary restrictions for carrying out activities have been introduced, approved by an Order of the Minister of Labor and Social Policy;
• persons using unpaid leave under Art. 160, para. 1 or art. 173a, para. 2 of the Labor Code.

In this regard, on the official website of the Employment Agency, section "Financial incentives for maintaining employment", an updated Order № RD-06-8/22.03.2021 of the Minister of Labor and Social Policy was published, approving List of the codes of economic activities for which temporary restrictions have been introduced for the implementation of an activity by an act of a state body during the period of declared state of emergency or declared state of emergency epidemic.

All current sample documents, as well as Instructions for employers to apply and report, are published on the official website of the Employment Agency.

The government has increased the budget of the Ministry of Tourism, allowing it to cover BGN 51 million in expenditures this year.

This will allow state aid to be paid to tour operators and travel agents in order to prevent bankruptcies in the sector and to compensate consumers of travel services who, due to the pandemic, have not been able to make the agreed trips.