Bulgaria tax deadlines and proposed penalty increases

The deadline for individuals and legal entities to submit corrective tax declarations in Bulgaria is September 30. This allows for a one-time correction of data previously reported in annual income tax declarations or corporate income tax filings. The National Revenue Agency (NRA) is notifying citizens of discrepancies found between declared data and information provided by employers or other payers, such as income from internet sales, state agricultural funds, or various fees.

Proposed legislative changes from the Ministry of Finance include significant adjustments to tax penalties. Fines for late personal income tax declarations are expected to increase from 500 BGN to 500 EUR, while penalties for providing false information could rise from 1,000 BGN to 1,000 EUR. Additionally, food vouchers are proposed to become taxable income at a rate of 7%, with the maximum monthly voucher amount increasing from 200 BGN to 200 EUR.

The proposals also introduce new tax reliefs, including a “child development” relief. This would allow parents to deduct expenses related to children's education, sports, health, books, and sports equipment from their tax base, provided documentation is kept for five years.