Bulgaria: Changes to social security legislation | KPMG Global
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Bulgaria: Changes to social security legislation

Bulgaria: Changes to social security legislation

The Council of Ministers introduced changes to the regulations for the remuneration elements and income on which insurance contributions are levied, which concern the social security implications in case of in-kind benefits for personal use of company assets and in case of summarized working time. Changes include:


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  • The obligation to make insurance contributions on in-kind benefits for personal use of company assets has been repealed. The amendments extend the scope of remuneration elements exempt from insurance contributions. The in-kind benefits in case of private use of company assets, for which the company has elected to levy a one-off tax under the corporate income tax law, will be exempt from social security contributions.

The change adopted by the Council of Ministers explicitly exempts in-kind benefits subject to a one-off tax under the corporate income tax from insurance contributions as of the moment the decree is promulgated in the official state gazette (expected in the next few days) and not retroactively. Thus, from the introduction of the right to choose and up to the moment of promulgation of the decree, insurance contributions will be due on these benefits if an employee’s income is below the maximum insurance threshold.

  • Minimum insurable income under summarized working time must be proportionally increased/decreased. In addition to the method for determining the maximum insurable income under summarized working time introduced as of 1 January 2015, the adopted decree implements an equivalent change related to the minimum insurable income effective as of 1 January 2017. 


Read an April 2017 report [PDF 135 KB] prepared by the KPMG member firm in Bulgaria

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