Taxable base can be reduced with up to 65% through donations, if certain conditions are met. Because the incomes of individuals in Bulgaria are taxed with a flat rate of 10%, the due tax can be decreased with up to 65% as well in a case of a donation.
With this regard the National Revenue Agency and the Bulgarian Donative Forum have organized together a joint campaign for donations encouragement by companies and individuals.
The taxable base can be decreased with up to 50% through a donation in favor of the “Fund for Assisted Reproduction” Center and/or of the “Fund for child treatment” Center. Another tax relief, which could be used by the Bulgarian citizens, is for Culture Donation – for creation, storage and popularization of pieces of art in the capacity of maecenas under the Patronage Law. With the money, paid for culture, the tax base could be decreased with up to 15%.
With up to 5% from all the incomes of the individuals can be decreased through donations in favor of medical facilities or hospitals, of specialized institutions for provision of social services as well as for the Agency for Social Assistance and for the Fund “Social Protection”. The tax relief is possible also in a case of donation in favor of specialized institutions for children as well as for child institutions deprived from parental care, nurseries, kindergartens, schools, universities or academies.
The relief could be used for donations in favor of budget institutions, as well, in favor of the registered in the country religions, of specialized enterprises or cooperatives of people with disabilities as well as in favor of the Agency for People with Disabilities; of the Bulgarian Red Cross; of cultural Institutions and schools. The citizens could decrease their tax base, if they make a donation to legal entities with a non-profit purpose, registered in the Central Register of the legal entities with a non-profit purpose for a realization of a social beneficial activity as well as to the Fund “Energy Efficiency and Renewable Energy”. The tax relief could be used in a case of donation in favor of Therapeutic Communities for Drug Addiction, as well as in favor of The United Nations Children’s Fund (UNICEF).
The tax reliefs for donations could be used if the donations are made in favor of identical persons from the EU. In these cases it is obligatory to provide an official legalized document, which certifies the status of the recipient of the donation and its translation in Bulgarian language made by a certified translator.