Social security and tax law amendments
Various changes to the social security and tax legislation in Bulgaria entered into force on 1 January 2016. The most significant are as follows:
- Weekend tax: tax credit shall be granted proportionally to the use of company's property for personal needs by the owner, its employees or for purposes other than the economic activity of the enterprise;
- Cash payments: the maximum amount of payments in cash is decreased from BGN 15,000 to BGN 10,000;
- Rules on state aid: new rules with respect to state aid for regional development were approved. In addition to bringing the national laws in conformity with the EU legislation, the new rules also reflect the fact that state aid will no longer be automatically granted. Taxable persons will have to comply with four sets of specific requirements, if they are to receive a state aid-related tax relief;
- Pension age: the pension age for women is 60 years and 10 months, and for men - 63 years and 10 months.
Another related development is the increase of the minimum wage to BGN 420.