Families with underage children will be able to enjoy tax benefit this year in the same amount as previous.
The reduction in tax base for parents who meet the requirements for tax benefit for 2023 and the amounts parents can claim are as follows:
- BGN 600 for one minor child – tax base decrease with up to BGN 6,000;
- BGN 1,200 for two minor children – tax base decrease with up to BGN 12,000;
- BGN 1,800 for three or more minor children – tax base decrease with up to BGN 18,000;
For underage children with disabilities, the amount to be received is up to BGN 1,200 – tax base decrease with up to BGN 12,000;
The tax relief can be used up to the amount of the annual tax bases under Art. 17 of the Personal Income Tax Act and provided that the other parent will not use the reduction for 2023 tax year.
When the amount of the tax relief is higher than the sum of the annual tax bases, the difference can be used by the other parent, by submitting an annual tax return under Art. 50 from PIT Act.
Child tax credits can be claimed in the following ways:
- Through the employer: between November 30 and December 31, 2023, parents must submit to their employer the declarations for the use of tax relief for children under Art. 22c, para. 8 of the PIT Act, resp. according to Art. 22d, para. 7 of PIT Act (for children with disabilities).
- Independently from the parents by submitting the annual tax return under Art. 50 from PIT Act until 30.04.2024
For further questions please don’t hesitate to contact Leinonen Bulgaria team.
