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National Assembly passed resolution imposing moratorium on agricultural land ownership by foreigners and foreign legal entities until January 1st, 2020
22/10/2013

The Bulgarian National Assembly has adopted on October 22nd, 2013, resolution imposing moratorium on agricultural land ownership by foreigners and foreign legal entities until January 1st, 2020. The decision was supported by 171 deputies, 38 voted against and 12 abstained.

The parliament has passed at first reading amendments to the Income Taxes on Natural Persons Act providing more tax reliefs to young families which are to take effect as of January 1st, 2014. The tax credits for young families will benefit also foreign natural persons, registered for tax purposes in another state - member of the European Union, or in another country – party to the Agreement on the European Economic Area. The amendments provide for equal tax treatment of local natural persons and such who receive most of their income in Bulgaria but are registered for tax purposes in another EU member country.

Amendments to the Local Taxes and Fees Act adopted at first reading eliminate trash collection taxes for places of worship, temples, churches and monasteries. The bill also frees the latter from paying real estate taxes on the buildings and the plots of land attached to them, as well as the transactions on aquisition of places of worship.

Amendments passed at first reading to the Corporate Income Tax Act widens the scope of municipalities able to remit the income tax paid by corporations in municipalities with high unemployment, meaning 25 % above the average for the country, taking as base the previous fiscal year. The current regime was covering municipalities with unemployment of 35% higher than the country’s average. At the same time the changes introduce new requirements for the corporations benefiting from the tax credit – to support at least 10 jobs throughout the fiscal year, at least 5 of them being directly involved in the production activity. At least 30% of the personnel of the corporation should have had permanent address in one of the municipalities granting such tax incentives. As, in its essence, this tax relief for corporations represents State aid it will take effect after approval of the European Commission which is to consider whether the said tax credit, granted by the municipalities to companies, corresponds to the Guidelines on regional State aid for 2014-2020.

 

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