Woohoo, an increase, but this time—it’s NOT a payment!
Child tax credits are increasing from 450.00 BGN to 600.00 BGN for one child and from 900.00 BGN to 1,200.00 BGN for two children… but, keep reading…
What do we need to know?
This is NOT social assistance, but a tax refund
You must NOT have any outstanding liabilities transferred to the NRA for compulsory collection (including local taxes and fees)
The credit applies only to 2021.
Who can use it?
Parents whose children are under 18 years of age and/or
– were born in 2022 and/or
– reached the age of majority in 2022.
Parent(s) who have received income subject to personal income tax, which most commonly includes:
– employment contracts and
– civil contracts,
Parents who have received rental income,
Parents who have received income from the sale of movable and/or immovable property, or the sale of rights
Parents who have received income from trading stocks, currency pairs, etc.
Parents who have received income from activities as a sole trader
Who CANNOT use it?
Individuals who are ONLY self-insured (if you are unsure if this applies to you, write to us at +359 877 51 59 91)
Individuals receiving benefits for pregnancy and childbirth, or maternity leave throughout the entire year
Individuals receiving benefits for temporary incapacity for work (for the period in question)
Individuals receiving unemployment benefits and/or the unemployed (for the period in question)
Individuals on unpaid leave throughout the entire year and/or for the period in question
and/or a combination of the aforementioned exclusions
How is it claimed?
Through an employer
– by submitting a declaration under Art. 22v (can be downloaded from the NRA system) of the PITA or from here
– by submitting a declaration under Art. 22g for children with disabilities (can be downloaded from the NRA system) of the PITA or from here
– by submitting a declaration under Art. 49, para. 4, item 8 of the PITA, download here
– in-person submission
– submission via PIC (obtained from the NRA, submitted very quickly and conveniently)
What is the deadline?
For employers – until December 31, 2022.
For the NRA – from March 1, 2023, to April 30, 2023.
(The amount is refunded within 30 days of submitting the declaration)
What if my withheld taxes are less than 600/1,200.00 BGN?
The credit can also be used by the other parent up to the corresponding amount
If you have any questions – write to us – you know where… office@abc-consult.eu or Viber us at +359 877 51 59 91
Example:
A parent ends maternity leave in June 2022 and starts work. They have two children. One reaches the age of majority in 2022. The employer withholds an average of 60.00 BGN per month for personal income tax. The father works year-round and also has an average of 60.00 BGN withheld monthly.
The parents can use the credit for both children
The father can use a credit of (12 months at 60.00 BGN) – 720.00 BGN
The mother can use a credit UP TO the difference of 1,200.00 BGN – 480.00 BGN
Example:
Parents have a child with a disability who is under 18 years of age.
Based on the above principle, the parents use
– BOTH the credit for a child with a disability,
– AND the credit for a child under 18 years of age
Example:
A parent can only recover part of the amount through their employer; do they lose the remaining part?
No, but the other parent must file an annual tax return according to the procedure mentioned above
