Bulgaria: Individual income tax measures, effective 1 January 2021

Bulgaria: Individual income tax measures

Changes to the individual (personal) income tax rules in Bulgaria that are effective 1 January 2021 include the following.

  • New deadlines for reporting and payment of individual income tax for certain types of income (persons conducting activities as traders and farmers)
  • A new tax deduction related to expenses for improving or repairing immovable property
  • Amendments to the amounts of deduction claimed for minor and disabled children
  • Simplified document rules for income received from economic activities or rent
  • A broadened scope of transactions with financial instruments, to include interest income from bonds or other debt securities issued by countries or municipalities and tradable on a growth market in Bulgaria or another EU or EEA Member State.
  • Increased scope of additional voluntary pension or health insurance and life insurance contributions

Read a January 2021 report [PDF 103 KB] prepared by the KPMG member firm in Bulgaria

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us