Bulgaria proposes food voucher increases and higher asset usage taxes

Proposed tax and social benefit reforms in Bulgaria include significant changes to the food voucher system and the taxation of personal use of company assets.

Under the new proposals, the maximum monthly limit for food vouchers would increase from approximately 102.26 euros to 200 euros. While the Association of Voucher Operators supports this increase to combat inflation and boost purchasing power for the 850,000 beneficiaries, they oppose a new 7% tax at the source on these vouchers. The association notes that in many other European countries, such as France and Greece, food vouchers remain exempt from taxes and social security.

Additionally, the Ministry of Finance has proposed increasing the rate for the personal use of company assets—popularly known as the ‘weekend tax’—from 3% to 7%. This tax applies when company assets, such as vehicles, real estate, phones, or computers, are used for both business and personal purposes. These measures are part of a broader package of tax amendments being considered for the upcoming fiscal period.