Name of law Law amending and supplementing the law on income tax of individuals Named on the Bill a bill amending and supplementing the law on income tax of individuals acceptance date 07/12/2011 number/year/2011 Official Gazette Decree No 99 257

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on taxes on the income of natural persons, adopted by the National Assembly of the HLI 7 December 2011.

Issued in Sofia on 12 December 2011

The President of the Republic: Georgi Parvanov

Stamped with the State seal.

Minister of Justice: Diana Kovatcheva

LAW

amending and supplementing the law on income tax of individuals (official SG. 95 2006; amend., SG. 52, 64 and 113 (2007), no. 28, 43 and 106 since 2008, issue 25, 32, 35, 41, 82, 95 and 99 from 2009, issue 16, 49, 94 and 100 by 2010, issue 19, 31 , 35 and 51 from 2011)

§ 1. In art. 9, para. 3 Finally, the comma and added "as well as for income under art. 13, para. 1, item 24.

§ 2. In art. 22, para. 1 item 3 shall be replaced by the following:

3. "up to 50 percent when the donation is for the benefit of the Center" Fund for treatment of children "and/or" Fund Centre for assisted reproductive technologies. "

§ 3. In art. 32, after the words "in accordance with" art "is added. 40, para. 5. "

§ 4. In art. 36 after the words "in accordance with" art "is added. 40, para. 5. "

§ 5. In art. 38 following amendments and supplements shall be made:

1. Paragraph 1 shall be amended as follows:

"(1) with a final tax is levied on taxable income by:

1. dividends in favour of the sole trader;

2. dividends and liquidation shares in favour of:

(a) local or foreign) individual from a source in Bulgaria;

(b) a natural person by local) source abroad. "

2. in the Al. 3 the words "gross amount of accrued charges" shall be replaced by ' the gross amount of the accrued amounts. "

3. a para. 12:

(12) with a final tax is levied on income from rent or other valuable consideration to provide the property in the form of Government with a general meeting of owners charged/paid by the businesses and self-employed individuals. "

§ 6. In art. 45 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) after the word "employer" is added "under art. 49, para. 1 ";

(b)) the second sentence shall be: "in the company note includes the tax withheld or recovered employee in determining the annual amount of the tax."

2. paragraph 2 is replaced by the following:

"(2) the employer shall issue and make available to the employee in repayment for specimen acquired in the year taxable income and tax withheld during the year, when:

1. the employment relationship is terminated in the course of the year;

2. income is from relationship under § 1, item 26) (and of the additional provisions;

3. an employer is not in the main employment to December 31 of the tax year – this circumstance is established by a written declaration provided by the employee;

4. deduction/refund under art. 49, para. 5 and 6 is not carried out until 31 January of the following year. "

3. in the Al. 3 the words "para. 1 "shall be replaced by" para. 2. "

4. Paragraph 6 is replaced by the following:

"(6) the company note under para. 2 shall be issued and provided to the employee in the following terms:

1. within one month from the date of the last payment in respect of the relationship under para. 2, paragraph 1, but no later than 31 December of the tax year;

2. by 10 January of the following year-in the cases referred to in para. 2, item 2 and 3;

3. to 5 February of the following year-in the cases referred to in para. 2, item 4. "

5. a para. 8:

"(8) Specimens under para. 1, 2, 4 and 7 shall provide the person acquired income, or of his authorised representative. "

§ 7. In art. 46, para. 1 the words "art. 38, para. 5, 8, 10 and 11 "shall be replaced by" art. 38, para. 5, 8, 10-12 ".

§ 8. In art. 48 Al is created. 8:

"(8) the tax under para. 1 and 2 after deductions under para. 3-5 rounds to each complete Lev. "

§ 9. In art. 52 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) in paragraph 1 the words "only an employer ' shall be replaced by" the employer basically an employment relationship ";

b) a new paragraph 2:

2. income from employment, when on 31 December of the tax year the person has no employer in primary employment relationship or any, but he has not determined the annual amount of the tax for all income tax year acquired during employment relationships, if both the following conditions are met:

a) tax on the total annual tax base is equal to the advance withheld under art. 42, and

(b) the person does not use) tax deductions by the procedure of art. 23, and/or ";

in the past) that 2, 3 and 4 shall become item 3, 4 and 5.

2. in the Al. 2, the words "under art. 50, para. 1, item 5 and para. 3 "shall be replaced by" referred to in art. 50, para. 1 4-5 and para. 3. "

§ 10. In art. 53 Al is created. 4:

"(4) the discount under para. 2 and 3 are used, provided that the natural persons obliged to pay tax in advance, are paid the full amount of the tax due within the time limit under art. 67. "

§ 11. In art. 65 following amendments and supplements shall be made:

1. In paragraph 8. 1 the words "art. 38, para. 10 and 11 "shall be replaced by" art. 38, para. 10 and 12.

2. in the Al. 3 the word "costs" is replaced by "amounts".

3. in the Al. 7, after the words "art. 38, para. 8 "is added" and 11 "and after the words" resident "is added" respectively from the cooperative "and a comma.

4. in the Al. 9 the word "costs" is replaced by "amounts".

§ 12. In art. 73, para. 3 the words "art. 38, para. 1 "shall be replaced by" art. 38, para. 1, item 2, "and the word" expense "is replaced by" amounts ".

§ 13. In art. 81 following amendments and supplements shall be made:

1. The current text becomes paragraph 1.

2. a para. 2:

"(2) in the event of a repeated offence under subsection. 1 fine or pecuniary penalty amounts to 2,000 LEVs. "

§ 14. Art is created. 81 (a):


"Art. 81. (1) a person – payer of the income, which, as is required, does not issue and does not provide the person acquired income models under art. 45, para. 1, 2, 4 and 7, is punishable by a fine or a penalty payment of up to $ 250, unless the person is not subject to more severe punishment. For offences committed for more than one natural person, the fine or pecuniary penalty be imposed separately for each individual.

(2) in the event of a repeated offence under subsection. 1 fine or pecuniary penalty is up to $ 500. "

§ 15. In § 1, item 26 of the supplementary provisions the following amendments and additions:

1. the letter "d" shall be replaced by the following:

"e) relationships with persons receiving income from elected officials;".

2. a letter "k":

"k) legal relations with the residents, who receive remuneration under a contract for training for the acquisition of the specialty of the nomenclature of specialties, defined by the procedure of art. 181, para. 1 of the Health Act. "

§ 16. In paragraph 10 (a) of the transitional and final provisions establishes al. 3:

(3) persons with disabilities 50 and over 50 percent down after coming of age for acquiring the right to a retirement pension under art. 68 of the code of social security, as well as persons reached the age for acquiring the right to a retirement pension under art. 68 of the code of social security, in the period of the TEMP (NATIONAL), enjoy tax relief for persons with disabilities pursuant to this law, regardless of the time limit set out in the expert decision deadline. "

Transitional and final provisions

§ 17. The income from the rent or other valuable consideration to provide the property in the form of Government with a general meeting of owners, accrued but unpaid until 31 December 2011, taxed by the procedure of art. 38, para. 12 in the payment.

§ 18. Income from the activities of individuals registered as tobacco producers and farmers, including operating as sole traders, for the production of unprocessed plant and livestock production, with the exception of income from the production of decorative plants, paid off in 2011, in the form of State aid, subsidies and other aid from the European agricultural guarantee fund, European agricultural fund for rural development and State budget shall not be included in taxable income under art. 26 and 29 and are not subject to tax when the 2009 or for previous years. These earnings are declared in the annual tax return under art. 50 for the year.

§ 19. Article 48, para. 8, art. 52, para. 1 and 2 and art. 53, para. 4 shall also apply to income tax for 2011.

§ 20. In the law on corporate income tax (official SG. 105 of 2006; amend., SG. 52, 108 and 110 since 2007, no. 69 and 106 since 2008, 32/35 and 95 of 2009, issue 94 from 2010, issue 19, 31, 35, 51 and 77 from 2011) make the following amendments and additions:

1. In art. 31, para. 2 the words "Center" Fund for treatment of children ", Center" Fund for assisted reproduction "and" Fund Center for transplantation ' shall be replaced by "Center" Fund for treatment of children "and" Fund Center for assisted reproduction ".

2. In art. 158 after the words "this chapter" the comma and the words "including filed subsequent to financial statements, which are prepared and presented in accordance with accounting legislation ' shall be deleted.

3. In art. 160, para. 3 all over the words "financial statements" shall be replaced by the words "annual activity report".

4. In art. 162, para. 6 all over the words "financial statements" shall be replaced by the words "annual activity report".

5. In art. 276, after the words "art. 92, para. 3 "is added" art. 160, para. 3, art. 162, para. 6 "and a comma.

§ 21. The law shall enter into force on 1 January 2012, with the exception of paragraph 1, which shall enter into force on the day of its publication in the Official Gazette.

The law was adopted by 41-Otto National Assembly on 7 December 2011 and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

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