On 9 January 2015 the Finance Ministry published a summary of amendments to the tax legislation that are effective from 1st January 2015. The amendments include the following major tax changes:

Personal income tax

  • Introduction of a new tax relief for parents of children not exceeding 18 years of age.
  • Abolition of tax relief regarding labor income not exceeding the minimum monthly wage.

Corporate income tax

  • Commission Regulation (EU) 1407/2013 of 18 December 2013 has been implemented in respect of application of de minimis aid, introducing new state aid rules in relation to the granting of tax benefits to qualifying companies.

Withholding tax

  • The EU Interest and Royalties Directive (2003/49) has been implemented in Bulgarian law, reducing withholding tax to zero on interest and royalty payments between affiliated EU entities. Previously during the period of implementation a 5% reduced rate was applied until the end of the year 2014.
  • Income derived from bonds traded on an EU/EEA-regulated stock exchange is exempt from withholding tax.

VAT

  • VAT Mini One-Stop Shop rules are introduced in respect of telecommunication, radio and television broadcasting services provided electronically.