Income from employment relations, received in the year 2008, is levied pursuant to the regulations of the new Personal Income Tax Act (PITA), in accordance with the amendments and supplements of the Act, effective from January 1st, 2008.
Tax on the income from employment relations is due to be paid by the worker or the employee, but it is assessed, deducted and paid to the budget by the employer.
Employer is any local person, foreign person, who carries out activities through a permanent establishment or fixed premises within the territory of Bulgaria, as well as any commercial representation office under the Investment Promotion Act, who or which hires individuals under employer relations or is a party to a contract for provision of staff by a foreign person /sent on business trip foreign employees/.
Employment relations are:
- the legal relations with workers and employees under the Labour Code
- the legal relations with civil servants and the legal relations between the Minister of Defence and the Minister of the Interior Affairs or officials authorized by them, on the one side, and the employees of the respective ministries, on the other
- the legal relations with the members of the Supreme Judicial Council, the Inspector General and the inspectors at the Inspectorate of the Supreme Judicial Council, the judges, prosecutors, investigators, chief administrators and their deputies in the judicial authorities, the public enforcement agents, the recording magistrates and the judicial officers under the Judicial System Act, as well as the legal relations under the Constitutional Court Act
- the legal relations between the Bulgarian Orthodox Church or another registered religion under the Act on the Religions, on the one hand, and the clergymen of the said Church or religions, on the other hand
- the legal relations with any person receiving income from any position which is elective by virtue of the law
- the legal relations related to hiring of labour force by a foreign person, where the work is done within the territory of the country, as well as the legal relations related to hiring of labour force of a local natural person by a foreign person, where the work is done outside of the territory of the country
- the legal relations between an employer and a Bulgarian or foreign natural person, where these legal relations are established under a contract for provision of staff between the employer and a third person
- the legal relations under management and supervision contracts, including with the members of managing and supervising bodies of the enterprises.