Tax relief declaration in Bulgaria for the year of 2023

Article author
Mika
  • Updated

As your employer in Bulgaria as of December 31, 2023, Remote is responsible for calculating your annual taxable base and personal income tax due for the year 2023.

If you meet the criteria below, you are eligible for tax relief and please upload the required documents via the Document tab in the Remote platform.

1. You were onboarded with Remote in 2023 or worked for other employers in 2023

Your income tax calculation takes into account the employment income that new joiners in 2023 received from their previous employers, along with any additional income earned from other employment contracts, if applicable.

Who is eligible?

You were hired in 2023, as well as those who have worked under other employment contracts

Required document

Income Statement under Article 45 of the Personal Income Tax Act (PITA) for income earned from other employers in 2023. You can download the template from here.

Note: We need the documents to calculate your tax accurately. Only your employment income from Remote will be considered in the calculation of the annual taxable base and the personal income tax for 2023.

2. Tax relief for children

Tax relief for children is applicable up to the annual taxable income for 2023,

Child tax relief is applied by deducting the described amounts below from your annual taxable base, depending on the number of children.

  • One child (18 years old or younger) BGN 6,000;
  • Two children (18 years old or younger) BGN 12,000;
  • Three or more children (18 years old or younger) BGN 18,000;

Who is eligible?

You have children who are 18 years old or younger and have no employees outstanding public obligations, such as unpaid taxes, social security, fines, etc.

Required document

Declaration under Art. 22v, Para. 8 from the PITA. You can download the template from this link.

3. Potential tax relief for children with disabilities

BGN 12,000 from your annual taxable base can be deducted as tax relief for children with disabilities.

Who is eligible?

Parents with children with up to 50% and more than 50% type and degree of disability, as validated by competent authorities who meet the conditions specified in the Declaration under Article 22g, Paragraph 7 of the PITA. To claim this relief, the parent must not have any outstanding enforceable public obligations.

Required document

Declaration under Article 22g, Paragraph 7 from the PITA (Form 2006). You can download the template from this link.

4. Tax relief for personal voluntary pension, health insurance contributions, and voluntary life insurance

Who is eligible?

Employees who contribute to personal voluntary pension, health insurance, or life insurance through monthly payroll deductions.

Required document

1. Declaration for absolving public obligations under PITA art. 49, p. 4, p. 8. You can download the template from this link.

2. Contracts of your respective pension, health, or life insurance providers.

5. Tax relief for donation

Who is eligible?

You made donations and the donation amount was processed through your monthly payroll with Remote.

Required document

1. The list of donation recipients. The recipients must be recognized under Art. 22 from PITA (e.g., a health institution, Bulgarian Red Cross, etc.)

2. The proof that the donation was received

3. Declaration for lack of public obligations under Art. 49, para 4, p. 8 from PITA. You can download the template from this link.

You can visit the government page to read more about Bulgaria's income taxes.

See also: How to upload documents

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