Woohoo, an increase, but this time – it is NOT for payment!
Tax relief for children REMAINS the same as in 2022 – 600.00 BGN for one child and 1,200.00 BGN for two children… but, keep reading…
Tax relief for children /PITA/
What do we need to know?
This is NOT social assistance, but a tax refund
You MUST NOT have any liabilities transferred to the NRA for compulsory collection /including local taxes and fees/
The relief applies only to 2023
Who can use it?
Parents whose children are under 18 years of age and/or
– were born in 2023 and/or
– reached the age of majority in 2023
Parent(s) who have received income taxed with personal income tax, which in the most common cases are:
– employment 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 shares, currency pairs, etc.
Parents who have received income from activities as a Sole Proprietor
Who CANNOT use it?
Persons who are ONLY self-insured /if you do not know if you are such – write to – +359 877 51 59 91/
Persons receiving benefits for pregnancy and childbirth, or maternity leave throughout the entire year
Persons receiving benefits for temporary incapacity for work /for the period in question/
Persons receiving unemployment benefits and/or the unemployed /for the period in question/
Persons on unpaid leave throughout the entire year and/or for the period in question
and/or a combination of the aforementioned NOs
How is it utilized?
Employer
– submitting a declaration under Art. 22v /can be downloaded from the NRA system/ of the PITA or from here
– submitting a declaration under Art. 22g – for children with disabilities /can be downloaded from the NRA system/ of the PITA or from here
– submitting a declaration under Art. 49, para. 4, item 8 of the PITA, download from here
– submitting in person
– submitting via PIC /obtained from the NRA, submitted very quickly and conveniently/
What is the deadline?
For the employer – until December 31, 2023
For the NRA – from March 1, 2024, to April 30, 2024
/the amount is refunded within 30 days of submitting the declaration/
What if taxes in the amount of 600/1,200.00 BGN have not been withheld from me?
The relief can also be used by the other parent up to the respective amount
If you have questions – write to us – you know where… office@abc-consult.eu or viber us at +359 877 51 59 91
Example:
A parent terminates maternity leave in June 2023 and starts work. They have two children. One reaches the age of majority in 2023. 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 relief for both children
The father can use relief /12 months at 60.00 BGN/ – 720.00 BGN
The mother can use relief 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.
The parents, based on the above principle, utilize
– BOTH the relief for a child with a disability,
– AND for a child under 18 years of age
Example:
A parent can only recover part of the amount through the employer; do they lose the remaining part?
No, but the other parent must file an annual tax return according to the procedure mentioned above
