From this year on, a new declaration for lack of public liabilities must be filled for those employees who would like to benefit from tax relief. According to the Personal Income Tax Act (PITA), every taxable person who has no mandatory public obligations at the date of submission of the annual tax return can submit the declaration.
Which employees can submit the declaration?
• those with reduced working capacity (a copy from the conclusion of the Territorial Expert Medical Board should be submitted)
The sum of the annual tax bases under Art. 17 for persons with 50 and with over 50 % reduced working capacity determined by an effective decision of a competent authority shall be reduced by BGN 7920, including for the year of occurrence of the incapacity for work and for the year of expiry of the validity of the decision
• those with personal voluntary social insurance contributions (a copy of the contract with the insurer / the insurance company is needed).
This tax relief is up to 10% of the amount of the annual tax bases for personal voluntary contributions paid over the year and up to 10% of the amount of annual tax bases for voluntary health insurance contributions and premiums / life insurance.
• those who made donations the current tax year
The reduction applies to the sum of the annual tax bases and the amount depends on the status of the benefiting individuals:
Up to 5 % of the sum of the annual tax bases may reduce the individuals who make a donation in favor of the establishments listed in Article 22 of the Personal Income Tax Act.
Up to 15 % of the amount of the annual tax bases can be reduced if you make a donation to the culture and up to 50 % if your donation is in favor of the Children’s Fund and / or the Assisted Reproduction Center
We want to highlight for you that the total tax relief for donations cannot exceed 65 % of the annual tax base.
• those who have children
BGN 200 – for one minor child
BGN 400 – for two minor children
BGN 600 – for three and more minor children
• for children with disabilities
What is the procedure?
Every employee should submit this declaration to his employer if he will advantage from tax reliefs. On the ground of Art. 49, para. 3 (8) of the PITA, the relief shall apply when the employee provides the employer, within the period of 30 November to 31 December of the tax year, with a written declaration that at the time of filing there is no publicly enforceable obligations. The declaration form is in free text.
We remain at your disposal in case of questions.