16.08.2023
CORPORATE RESPONSIBILITY TOWARDS SOCIETY AND THE ENVIRONMENT
Corporate social responsibility is one of the current topics not only in society, but also in law and economics. Usually, it mainly boils down to the fact that all merchants and social entities that carry out activities that come into contact with nature and society are obliged to preserve and protect public interests.
Does this exhaust the commitment of companies on this seemingly limited topic?
In fact, corporate social responsibility is not subject to legal regulation and therefore lacks a legal definition in the laws. The debate on the subject is mainly in the field of ethics and boils down to whether the commercial company should be controlled more by the state, or whether a social contract is needed between it and civil society. However, it is a fact that the state does not always show sufficient concern and vigilance in the protection of nature and public interests.
In practice, as most of us have convinced ourselves, the intervention of vigilant citizens and non-governmental organizations, often and thanks to social networks, signal phenomena that irreversibly destroy natural objects. This is also the reason why corporate social responsibility is implemented under the simultaneous pressure of the state and society.
In other countries, the issue of corporate responsibility is placed in the foreground and is a matter of honor for the development of companies in social and economic terms.
Let us clarify that social responsibility is an ethical category and means that the enterprise as an organization or individual entity has an obligation to act for the benefit of society as a whole. It requires the merchant to behave ethically during his business activities and to contribute to economic development by improving the quality of life of both his workers and their families, the local community and society as a whole. This responsibility arises both for passive behavior - failure to prevent harmful actions, and for active - actions that directly contradict social goals.
Nowadays, companies should make efforts to integrate socially and ecologically in their business activities and in their relations with their partners. As part of society, as part of the environment in which they develop, companies, their decisions, their activities are judged not only on the basis of profits for themselves, their partners and shareholders, but also on the basis of how well they serve and are useful to society, based on their social meaning and purposes. In the modern business environment, corporations and their managers are forced to play a significant active role in increasing the welfare of society.
In order for this responsibility to be realized, the environment in which individual companies exist and operate, the local social and natural environment and the broad global environment in which they realize their goals, is of fundamental importance.
There is no doubt that business is an active participant in public life, engaging natural resources, attracting labor, creating material goods for society.
In many cases, business is a participant in political life. The responsibility of companies should be expressed in the optimization of natural resources at the local and national level as part of its production activity, in the results of the competition between the corporation and other organizations in the same field, the enrichment of the social environment by increasing the opportunities for work, the distribution of the positive results of the activity of the owners of the company through the distribution of dividends not only among the partners and shareholders, but also among the workers.
But the biggest link of corporate social responsibility is the link to climate change. More or less every production activity exploits the planet's resources. In some cases - in an irreversible way - poisoning of lands and waters, cutting down forests, destroying biological diversity, making the population sick, damaging the genetic code, etc.
In some cases, the profit of an enterprise can be found in a causal relationship with the deterioration of the environment and the way of life in a certain populated place. And this is exactly where the society and the non-governmental sector must intervene - to ensure the balance between the interests of the corporation and those of the citizens, of the entire society, ranking them in importance and directing the attention of the state authorities to these issues.
15.08.2023
ENTREPRENEURSHIP: FIVE TIPS FOR SMALL BUSINESSES TO TAKE ADVANTAGE OF NEW TECHNOLOGY
Nowadays, almost every business is technological. Emerging technologies enable critical insights, automation and efficiency across a wide range of business functions, from human resource management and efficient operations to marketing. Technological developments also make many solutions more and more suitable and affordable for small and medium-sized enterprises.
In a recent Inc., Fast Company and Dell Women's Entrepreneurs Network (DWEN) webinar, the moderator spoke with Venus Quaits, president and CEO of integrated technology provider Launch Tech, and Katina Kenyon, CEO of Tree3, an e-commerce platform commerce for content creators. The two talk about how small business organizations like them can make the most of technology.
Fast Company takes the main takeaways from this conversation.
Kenyon comes out of the technology sector - her first job was at Dell, where she says she had the opportunity to "learn from great leaders under the corporate umbrella". She combined her love of technology with her interest in fashion and content creation to build her own company that uses artificial intelligence and visual machine learning to help creatives connect with brands.
"Find something that excites you," Kenyon says, because it will fuel you and "mitigate some of the challenges that we all face as entrepreneurs."
Quaits has been a serial entrepreneur since childhood. When she was old enough, she began reading magazines to find out what the hottest jobs of the year were and what certifications and skills she would need to acquire for them.
"I paid for myself to go to training if my employer didn't send me. The money mainly went to upgrade my qualifications."
There is too much information about new technologies for any entrepreneur to find, but Quaits is adamant that one should not overdo it.
"Just yesterday I was looking at something on the internet about artificial intelligence and machine learning for the back office of restaurant platforms. It's so cool! It's the future. But can you imagine that a mommy-daddy-me restaurant could apply this now? Probably not."
She advises entrepreneurs to spend 30 minutes a day perusing news based on keywords related to their business goals, so they stay on top of trends without getting overwhelmed by the overwhelming amount of information.
Rather than trying to offer "everything," Kenyon says a business is best off letting customers show it what they need from it.
"This means participating in forums with your early adopters, giving advice to customers and generally listening to their opinions," she says, and suggests that entrepreneurs always accept calls from potential partners trying to sell them new technology. .
"Ask them to tell you about what they offer and how it can solve your business's problems, so they save you research time," she emphasizes.
The costs of starting a business can be burdensome, but there is no shortage of ways to make technology more affordable. Kenyon advises budding entrepreneurs to always compare offers from different startup providers, as they sometimes offer discounts.
Coates says, "I always type in the name of the software and then add 'vs.' because there are always people who have done useful comparisons of the different products for you. This helps you compare the prices and features of competing products."
And even if there isn't, there's always a way to do the research yourself, albeit at the cost of some time.
15.08.2023
UNEMPLOYMENT RISES IN THE HEIGHT OF SUMMER
The level of registered unemployment in the country of 5.2% was reported in July by the administrative statistics of the Employment Agency. Thus, at the height of the summer season, the month saw a slight increase in unemployment of 0.2 percentage points compared to the previous June.
Accordingly, the Employment Agency reports an increase in the number of registered unemployed in the labor offices. At the end of July, they totaled 147,596, which is 5,086 more than in June.
In July, the activity for registration at the labor offices also increases. 21,512 new unemployed were registered. They are 1,937 more than the previous month and 1,150 more than those registered in July 2022. Another 597 people from the groups of jobseekers employed, learners and pensioners also registered with the employment offices during the month, although in this group there was a 21% decrease compared to the previous month in the demand for the Agency's services.
The number of inactive persons on the labor market activated in July is also increasing. As a result of the work of the Roma and youth mediators, as well as the labor mediators in the labor offices, a total of 4,166 were activated for the month.
In the number of those who started work in July, the administrative statistics of the Employment Agency reports a decrease - in the month they were 10,212 compared to the reported 14,176 in June. 379 pensioners, students and employed people also found work with the support of the labor offices.
The largest share of those who started working in the processing industry sector is 21.2%, followed by those in trade - 12.7%, hotels and restaurants - 7.5%, state administration - 6.4%, construction and agriculture with 5.5% each, and others. Nearly 780 unemployed started work during the month in EU countries with the mediation of the Employment Agency.
689 unemployed people from the risk groups found their employment through subsidized jobs - 220 under employment programs and measures and 469 - under schemes of the Human Resources Development Program. 184 unemployed and employed are included in various trainings, and 223 people have completed the training started in previous months, having acquired a new profession or key competence.
During the month, 9,026 vacancies were reported in the labor offices in the primary market, compared to 11,325 in June 2023. In the real economy, the most vacancies were reported in the manufacturing industry (25.1%), education (18.3%), trade (11.1%), followed by public administration (8.6%), hotel and restaurant industry (7.8%) and administrative and auxiliary activities (6.1%).
The most sought-after professions by businesses in July are: teachers; staff caring for people; workers in the mining and processing industries, construction and transport; sellers; machine operators of stationary machinery and equipment; personnel employed in the field of personal services; waste collection and related workers; drivers of motor vehicles and mobile equipment; skilled workers in the production of food, clothing, wood products and related; metallurgists, machine builders and their relatives and craftsmen, etc.
09.08.2023
SPECIAL CARE FOR WOMEN IN THE WORKPLACE
Workplace living issues are among the most frequently cited when workers are asked what they think their employer could do to improve the working environment.
Let's not forget that for all such conditions, the law lays down very specific requirements that must be met by employers. It is their duty to ensure this environment, and if they have not complied with statutory provisions governing working conditions, they will accordingly suffer both administrative and financial sanctions, in the event that a control body finds such violations.
When talking about working conditions, it mainly refers to ensuring the health and safety of workers. The perimeter of the scope of these conditions is extremely wide - from the hygiene of the workplace, to the level of lighting and noise, even the height of the chair, the desk, the desktop and the brightness level of the monitor, if we work with a computer or other type of video displays.
Among the requirements regarding the working environment, which affect all workers, there are special provisions that only affect women.
Practice shows that these regulations are often not followed and workers are rarely informed that they exist at all. It is a question of specially arranged premises intended for hygiene and personal care of women, as well as premises intended for resting of female and male employees. What are the requirements for these premises and in which cases should they be provided?
Rooms for women's personal hygiene and rest rooms for pregnant women shall be opened and furnished in enterprises in which 20 or more women work.
The women's personal hygiene room consists of:
Each cubicle and toilet must be equipped with a pedal-operated waste bin. The cabins must have running hot and cold water that complies with BDS 2823-67.
The rest room for pregnant women has an area of not less than 8 square meters and is equipped with:
Women's personal hygiene rooms and pregnant women's rest rooms should be next to each other. They are found in premises that are not exposed to industrial hazards and pollution.
In the rooms for women's personal hygiene and in the rest rooms for pregnant women, heating and lighting are provided in accordance with hygiene standards.
The head of the enterprise organizes the furnishing, completion and opening of the rooms for women's personal hygiene and the rest rooms for pregnant women and ensures their regular supply with the necessary materials determined by the health worker serving women and the trade union committee.
The health and trade union bodies of the enterprise exercise control over the opening, furnishing, maintenance and use of the rooms for women's personal hygiene and the rest rooms for pregnant women.
Smoking and the use of alcohol are prohibited in the rooms for women's personal hygiene and in the rest rooms for pregnant women, as well as their use for other purposes.
Reference:
Ordinance No. 11 of March 2, 1987 on the rooms for women's personal hygiene and for the rest of pregnant women
08.08.2023
SUCCESS TECHNIQUES: WHEN AND HOW TO SAY NO IN THE WORKPLACE
Saying no in the workplace is difficult, especially when you're early in your career. This often goes hand-in-hand with feelings of guilt and reflections on whether you've let your supervisor or your team mates down.
However, the ability to say no is one of the most important skills to learn in the workplace. Not only does it protect you from other people trying to take advantage of you, but it also helps you protect the passion and motivation you currently feel in your work. Too often, proactive and responsive employees are cursed to say yes to everything they're offered, leading to burnout and dissatisfaction with the work they once loved.
In other cases, you may find yourself the target of mismanagement or unethical behavior if you are asked to perform a task that you know you shouldn't be doing. The ability to say "no" sets a clear line between you and the asker and reinforces the understanding that this request is wrong.
Here are some scenarios where you should say no in the workplace, and the right way to do it:
The task interferes with your primary responsibilities and commitments
Before you say no to a task, you should be fully aware of your responsibilities. Review your job description, talk to your manager about priorities, and ask for clarification if needed. Make sure that your hesitation is not just because the task is new and unfamiliar to you.
How to say no: "I'd like to help, but I don't have the opportunity right now."
This response acknowledges the request while setting a boundary. It's important to be honest about your workload and priorities and avoid committing to too many tasks. This answer also shows that you are willing to help in the future when you have the opportunity.
The deadline is unrealistic
When you are given a deadline, take some time to understand the scope of the task and the resources available to you. Break the task into smaller parts and estimate the time required for each part. If you then feel the deadline is unrealistic, then it's time to talk to your manager or client. Use data and evidence to support your position and suggest alternative timelines that are more realistic. Be sure to communicate any concerns early rather than waiting until the last minute.
How to say no: “Unfortunately, completing the task within this deadline will not be possible. Can we extend the deadline to…?”
This response validates the request while offering a realistic alternative. It is important to be clear about your reasoning and provide evidence to support the proposed new schedule. This response also shows that you are willing to cooperate to find a solution.
You are on vacation
Before you go on vacation, set clear boundaries and communication expectations to avoid having to finish work, answer email, or take calls during your vacation. Let your team know and make it clear who will handle these things in your absence.
How to say no: "I'll be on vacation then, so I won't be able to do it."
This answer is short and to the point and emphasizes the importance of respecting personal free time. If you are on leave or have a planned absence, it is a good idea to communicate this as early as possible to avoid any misunderstandings or last minute requests.
They are taking advantage of you
If you feel that you are being asked to do more than is fair, ask yourself if the task is designed to expand your abilities and give you new experience, or if it is simply something outside the scope of your role. To avoid this problem occurring often, set clear expectations with your team and manager about your workload and career advancement goals.
How to say no: "I appreciate the offer, but I can't commit to it right now."
This response shows gratitude for the offer while also setting a boundary. It's important to be honest about your workload and priorities and avoid committing to too many things. This response also leaves the door open for future collaboration opportunities.
You are being asked to do something unethical/dangerous
If you're not sure whether a task is ethical or safe, review your company's policies or talk to a trusted colleague or supervisor. If you feel uncomfortable with a task, present alternatives or suggestions that align with your values and prioritize your safety. If the situation is not resolved, consider escalating the issue to HR or a higher level of management.
How to say no: “I don't feel comfortable doing this. Is there anything else I can help with?'
With this answer you are expressing discomfort or concern. It is important to be aware of the reasons for refusal and to offer alternative solutions. This response also shows that you are willing to help in other ways that fit your values and comfort level.
You are not qualified (the most qualified) for the task
Ask yourself if you have the necessary skills and experience to complete the task at hand. If there is someone else on your team who is better equipped for it, consider delegating it to them or working together to successfully execute it. Recognize your shortcomings and be willing to acquire and develop new skills if necessary.
How to say no: "Thank you for thinking of me, but I don't think I'm the best person for it."
This response shows gratitude for being considered while presenting an honest analysis of the limits of your abilities. Important to avoid taking on tasks for which you are not qualified. This response also shows that you value quality and are willing to delegate tasks to others who may be better equipped to handle them.
08.08.2023
CURRENT: NEW POSSIBILITIES WHEN ESTABLISHING A COMPANY WITH VARIABLE CAPITAL
At the end of July 2023, at a plenary session of the National Assembly, changes to the Commercial Law incorporating the institution of the company with variable capital were finally adopted.
The new legal framework is a long-awaited step aimed at easing the legal regime of start-up companies and adapting the regulatory rules to the rapid pace of business development. As noted in the reasons for the bill, the establishment of our country as the center of a significant percentage of the innovative activity of companies in Europe requires bringing the regulatory framework in line with the needs of business. In this way, the aim is to provide an opportunity for the unhindered start of the activity of start-up companies (including the raising of significant investments, retention of key employees, clear settlement of relations with investors), which subsequently, without excessive administrative burden, can to develop including to the level of companies whose shares are traded on regulated markets.
What does the legal framework of a company with variable capital look like?
The legal framework partially approaches that of limited liability companies (LLC) and to a greater extent that of joint stock companies (JSC). At the same time, however, it provides significant advantages that overcome the shortcomings of the legal organizational forms already known to us and allow the legal framework to adapt to rapidly developing business relations.
The amendments provide that such a company can only be a micro- or small enterprise within the meaning of the Law on Small and Medium Enterprises. This limitation comes to show the actual legal will of the legislator, namely that the new legal organizational form is available to truly "starting" companies. The company can function both in the presence of more than one partner, and as a sole proprietor. The main body of the company remains the general assembly (or the sole owner), whose prerogatives include making the most important decisions related to the functioning and existence of the company in general.
It is interesting that the names of the elected manager or board of directors (the number of members stipulated in the partnership agreement adopted by the partners) are subject to entry in the Commercial Register and the Register of Non-Profit Legal Entities, as well as the chosen method of representation, as in the register does not publish public information about the ownership of the shares in the company with variable capital. The latter should be placed in a special book of the partners for the purpose, and it is expressly provided that in addition to the partners in the company, third parties also have access to it, but not in its entirety (but only as regards a specific partner) and on condition that prove the existence of a legal interest in receiving the information.
On the other hand, the amount of capital of the company with variable capital is also not published. The provided opportunity for its establishment is through familiarization with the decisions taken at a regularly held annual general meeting for the adoption of the company's annual financial report. At the same meeting, decisions are taken that establish the amount of capital at the end of the relevant financial year, as well as how the capital has changed compared to the previous financial year.
Given the basic nature of the regulation, a very essential element in the organization of the company with variable capital is the company agreement, which is designed to regulate all the rights and legal relations specific to the specific new business. The latter is subject to announcement in the Commercial Register and the Register of Non-Profit Legal Entities. With it, a number of deviations from the dispositive general rules can be foreseen, as well as a variety of private hypotheses to meet the needs of the specific company. Examples of similar hypotheses (which are either completely inapplicable or extremely difficult to apply in the legal organizational forms of companies we know) are:
- temporary ban on disposal of shares;
- right of preferential purchase of the shares of one of the partners by one or more of the other partners;
- opportunities to control the partners participating in the company - legal entities based on the control exercised over them and the changes in the latter;
- creation of rights to acquire company shares under certain conditions (including from employees with the aim of including them in the vision and business goals of the company).
The regulations of the new type of company speak of the distribution of its property in the form of shares. At the same time, however, they are allowed to be divided into separate classes (and in this sense also providing different privileges) and to have a different nominal value (with the legal minimum being 1 penny), as well as to be subject to acquisition by the company itself. This shows that the new regulation has borrowed established positives both from the structure of the limited liability companies we know, and from that of joint stock companies.
Thus, to a certain extent, the property rights provided by each registered share are similar to the already known property rights of partners in limited liability companies and shareholders in joint stock companies. On the other hand, the provisions of the new type of company provide completely new rights, some of which were listed above.
Of interest and a significant step in the direction of digitalization are also the provisions that implement the electronic form of communication and in general the expression of will, especially in the procedures for convening and holding the general meeting of the company. In this way, in practice, many of the difficulties and formalities in decision-making will be overcome and flexibility in communication between partners will be ensured.
In summary, the expectations of the legislative body, as well as of the business, are to respond in a more adequate way to the individual needs of each start-up high-tech and innovative company oriented to rapid economic growth, to the relationships with its investors and key employees through the new regulation. . Apart from this, the analyzes show that the establishment of such companies is associated with less administrative burden and initial costs – issues that appear to be leading in the decision to start a new business venture.
07.08.2023
THE HEALTH CONTRIBUTION HAS GONE UP
From 1 August 2023, people who pay their own compulsory health contributions (e.g. long-term unemployed, who do not receive unemployment benefits and are not insured by the state, etc.) and are not registered as self-insured within the meaning of the Social Security Code, owe BGN 31.20 per month.
From the first day of August this year, the minimum monthly insurance income for self-insured persons has been increased, and it is now BGN 780. According to the Health Insurance Act, the uninsured for other reasons are insured on an income not less than half of the minimum monthly income for self-employed individuals. Thus, the health insurance contribution for them is calculated at the rate of 8% on a monthly insurance income of no less than BGN 390 and no more than BGN 3,400 per month, reports the NRA press center.
The deadline for making these contributions is until the 25th of the month following the month to which they refer, the NRA reminds. Legal interest is charged for payment that is not made on time. The health contribution for August 2023, which is already BGN 31.20, must be paid by September 25, 2023 at the latest, and the contribution for July, which should be paid by August 25, is in the amount of BGN 28.40
All those who are required to pay their own health insurance contributions must submit a declaration Form 7 to the NRA, the revenue agency also reminds. In the section "Health insurance" on the website of the revenue agency, there is also information on filling out and submitting declaration Form 7.
The form must be submitted by the 25th of the month following the month for which the obligation to pay the health insurance contributions arose in an office of the National Revenue Agency, by mail with return receipt or through the electronic service of the revenue agency "Acceptance of declaration form No. 7 "Data on the occurrence of an obligation to pay health insurance contributions", accessible by Personal Identification Code or QES. Information on completing and submitting declaration Form No. 7 and paying the health contributions can also be found on the YouTube channel of the National Revenue Agency, the website of the revenue agency or by phone: 0700 18 700; +359 2 9859 6801 at a price according to the tariff of the telephone operator.
The health insurance rights of citizens, who are insured at their own expense, are interrupted if more than three due monthly installments have not been paid in a period of 36 months. The period is counted until the beginning of the month preceding the month in which the person sought medical assistance paid by the National Health Insurance Fund.
Interrupted health insurance rights of citizens are restored on the condition that all due health insurance contributions for the last 60 months are paid. Entitlements are reinstated from the date of payment of all due health insurance contributions for that period. The contribution can be paid free of charge at the NRA office through the available POS terminals at all customer service workplaces.
Citizens can check their health insurance status, as well as check the periods for which they lack health insurance contributions, through the NRA electronic service, which is freely accessible on the NRA Portal.
Clients of the administration can also inquire about their health status by phone: 0700 18 700 (at a price according to the tariff of the relevant operator). The service is automatic and requires only the entry of the PIN via the phone's keyboard. It is possible that the application will also ask you to enter a 6-digit code set by it, the so-called "captcha", to verify that you are not a robot. In addition, the system also gives data for all months and years for which no payments have been made the mandatory health insurance contributions. The telephone health status inquiry works 7 days a week, 24 hours a day.
04.08.2023
JOB OFFERS ARE DWINDLING
For the second month in a row, job offers continue to decrease.
There are also 8% fewer advertisements in the first half of the year compared to the same period in 2022. The data is on the largest platform for career development in our country.
According to experts, the main reason is the active holiday season, when both employers and job seekers are less active in the labor market.
Compared to the same period last year, however, job offers also decreased again by 8 percent. The explanation here is the decline in offers in the information technology sector. The trend started at the end of last year and currently nearly two-thirds of the annual drop in listings is in this sector.
A number of employers share a reduced or frozen budget for appointments or salary updates, which also leads to a reduction in job offers.
A decline was also reported in the "Trade and Sales", "Production", "Logistics and Transport" and "Construction" sectors. The number of advertisements in healthcare and pharmacy is increasing.
03.08.2023
SUCCESS TECHNIQUES: A QUESTION YOU CANNOT ANSWER
You've finished your presentation and it's time to answer questions from attendees. You see a lot of raised hands waiting for your attention. Some questions you answer easily, and for others you admit that there is no concrete answer. However, there are also questions you fear - the ones you can't answer.
Maybe it's about some functionality that your new app offers, or maybe it's about your company's initial public offering. Perhaps you are asked to comment on a recent significant event or respond to some criticism. In these types of situations, giving a clear, direct answer can put you at a disadvantage in some way. The real question is how to answer in such a way that you remain in good standing but also satisfy the questioner. Here are three techniques you can use to manage these types of challenging situations and answer questions you can't answer directly.
Reformat
When you get a difficult question, start by paraphrasing the query before you answer. This paraphrasing allows you to rephrase the question to make the process of finding an answer easier. For example, imagine that an important prospect asks you about the availability of a certain feature in your product—one that you know is unlikely to exist in the future. In this case, you might paraphrase the question like this: “Want to know more about our roadmap and the priority features we're working on? I will tell you more…”. By doing so, you broaden the question, giving you the opportunity to present a broader vision and perhaps highlight a close or related functionality to the feature your prospect is looking for. Reframing gives you a way to turn an awkward question into something more manageable while allowing you to redirect the communication.
Give a reason
Providing a legitimate reason for not answering a question directly is another tool you can use when you can't give a direct answer. Citing legal issues, regulatory guidelines, or established practices may serve as a valid reason not to respond directly. Alternatively, you can refer to an existing policy that prohibits commenting on questions like the one you were asked. Finally, you can attribute your inability to respond to a lack of information on the subject. For example, if someone asks what you think about the new direction a competitor is taking, you can say that you want to do more research before answering to make sure your answer is adequate and correct.
Give an explanation
In some situations, you can state that you cannot answer the question directly, but you can share some of the rationale or framework that will be used in addressing the topic of inquiry. For example, if you work for a private company and are asked about its plans to go public, you might say, "The question involves an internal decision that we may or may not make, but our choice will always be driven by a desire to we serve our customers, employees and investors in the best possible way.''
How to use paraphrasing, giving a reason, and giving an explanation
Using the rephrasing, reasoning, and explanation approach takes practice. Role-playing situations can help. For example, here's what this technique would look like if someone asked you, "When will this feature be included in your product?"
Taking the time to think about and answer difficult questions will ensure that you feel more comfortable when faced with them. Here's how to prepare for situations where you may be asked questions that will be difficult to answer:
Then practice answering potentially challenging questions out loud. Finally, validate your ideas by sharing your potential answers with colleagues to ensure consistency and support for your approach.
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.
