New legislative changes promulgated in the State Gazette no. 66 of 01.08.2023 in connection with the State Budget Act of the Republic of Bulgaria for 2023
Effective as of 01.08.2023
1) The minimum insurable income is increased to BGN 780.
2) The minimum insurable income for self-insured persons is also increased to BGN 780.
3) The amount of the maximum monthly insurable income of BGN 3,400 is retained.
4) A new amount of the cash benefit for raising a child up to 2 years of age under art. 53 of the Social Security Code and for raising a child up to 8 years of age by the father (adoptive parent) under art. 53g of the same code for 2023 – BGN 780. This change will enter into force retroactively from 01.01.2023.
5) According to the new amendments to the Social Security Code: The remuneration related to work done for the past tense shall be allocated to the days worked during which the work is performed (Art. 6, para 2), and not only to the month in which they are paid.
6) Already self-employed fathers who are insured for general illness and maternity will be entitled to a benefit under para. 6 of art. 50 when they have 6 months of insurance as insured for this risk.
Declaration of balances of cash desks and receivables from owners, staff and accounting persons in force as of 01.09.2023
In Art. 123 in the VAT Act para 10 is created, which reads:
When at the end of a calendar quarter the total amount of cash on hand in the cash desks, the amount of receivables (including from loans granted) from owners natural persons, workers, employees, persons employed under a management and control contract and accounting entities exceeds BGN 50,000., the persons registered under this Act, who are enterprises under the Accountancy Act, shall declare separately for the respective calendar quarter with the declaration under Art. 55, para. 1 of the Income Taxes on Natural Persons Act and Art. 201, para. 1 of the Corporate Income Tax Act, by the end of the month following the quarter, data from their current accounting concerning:
1. the amount of cash available in the cash desks;
2. amount of receivables (including from loans granted) from owners natural persons;
3. amount of receivables (including from loans granted) from workers, employees, persons employed under a management and control contract and accountable persons.
The first period for which data are declared under the conditions and by the order of 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 Income Taxes on Natural Persons Act and Art. 201, para. 1 of the Corporate Income Tax Act shall be submitted by November 14, 2023.
Limitation of some more cash payments and free account for basic features
In the Law on the limitation of cash payments in force from September 1, 2023 it is added that payments on the territory of the country are made only by transfer or deposit on a payment account and for the following cases:
1. Labour remunerations within the meaning of the Labour Code, paid by employers with 100 or more employees, with the exception of persons with whom an employment contract for short-term seasonal agricultural work has been concluded by the order of Art. 114a;
2. Dividend within the meaning of § 1, item 4 of the Additional Provisions of the Corporate Income Tax Act, when the value is equal to or exceeding BGN 1000.
3. Administrations in servicing the operations for the collection of revenues and other receipts in bank accounts of budget organizations will not be able to refuse card payments just because it is not issued in Bulgaria.
4. There is also a corresponding amendment to the Labour Code regulating that when remuneration is paid by an employer under Art. 3, para. 1, item 3 of the Law on Limitation of Cash Payments, its payment shall be made only by transfer or payment to a payment account in a bank specified by the employee in the country.
5. An addition has also been made to the Law on Payment Services and Payment Systems, which regulates the so-called Payment Services and Payment Systems.the free account for basic operations, by creating Art. 120a. This account is exempt from fees under the conditions of Art. 120a of the Act. Paragraph does not apply to withdrawal of amounts through ATM and POS terminals of banks other than the servicing bank.Important amendments in relation to food vouchers 1.
Amendments are made to the Corporate Income Tax Act in relation to food vouchers. From January 1, 2023 (retroactively),
food vouchers under Art. 209, para. 1 of the Corporate Income Tax Act will also be able to be used for payment of electricity and heat used for household needs, natural gas and water, of activities carried out by cultural organizations under the Protection and Development of Culture Act and on display of films under the Film Industry Act, and of tourist services under the Tourism Act. The amount of 200 BGN remains. monthly provided in the form of food vouchers, which will not be taxed social expenses.
2. As of January 1, 2024, “Electronic Food Vouchers” are introduced. They are payment instruments that can be used only in a limited way and meet the conditions under Art. 2, para. 1, item 11, letter “c” of the Payment Services and Payment Systems Act, provided through the employer to employees, including those under management contracts that are used to pay for food and food products in restaurants, fast food establishments and food retail outlets, including grocery stores, supermarkets, hypermarkets and others operating in accordance with the requirements of the Food Act, under a service contract with an operator. Food vouchers on electronic carrier are not electronic money within the meaning of the Payment Services and Payment Systems Act. The operators under art. 209, para. 3 of the Corporate Income Tax Act can print and provide food vouchers on paper until June 30, 2024.