Social security contribution:

Bulgaria: 6% social security contribution

Accounting Services

Accounting Bulgaria


ACC offers a full range of accountancy services with an emphasis on payroll, tax consulting and annual and periodic financial statements.

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Payroll Accounting

Payroll Bulgaria
At the Accounting Competence Center in Bulgaria, we view our work as more than just a job to complete. It's an entire way of doing business.

Payroll in Bulgaria - quickly, professionally and efficiently.

Taxes in Bulgaria

Tax planning and Tax optimization

ACC Tax Specialists bring combined experience and expertise to client assignments - we are creative, driven, diligent and enjoy solid reputations with Bulgarian government representatives based on a long history of mutual respect. These relationships, combined with extensive tax optimizartion experience allow for a unique approach to tax consulting.

GENERIC TAX NAME Social security contribution - Health insurance contribution
Tax name in BG Здравноосигурителна вноска
Tax name in English Health insurance contribution
Tax in force since 01/07/1999
Legal base
Health Insurance Act, Promulgated, State Gazette, No. 70/19.06.1998 (last amended SG No. 113/28.12.2007, (effective 01.01.2008).
Type of tax
DIRECT TAXES
Personal income tax
Corporate income tax
Other
INDIRECT TAXES
VAT
Excise duty
Other
SOCIAL SECURITY CONTRIBUTION

Who Sets
the tax rate the tax base Reliefs
Central authority
Regional authority
Local authority
Social security
 
Central authority
Regional authority
Local authority
Social security
Central authority
Regional authority
Local authority
Social security

Region of application
Republic of Bulgaria.

Taxpayer
-A contributor shall be any natural person, legal person or unincorporated association, as well as any other organization obligated by law to make health insurance contributions for other natural persons-health insurance contributions shall be divided between contributors and the insured persons in the following ratio:

1) for 2000 and 2001: .....................80 to 20;
2) for 2002-2004: ...........................75 to 25;
3) for 2005: ...................................70 to 30;
4) for 2006: ...................................65 to 35;
5) for 2007: ...................................65 to 35;
6) for 2008: ...................................60 to 40;
7) for 2009: ...................................55 to 45;
8) for 2010 and thereafter: ..............50 to 50.

-A self-insured person shall be any natural person obligated to make health insurance contributions entirely at their own account.

-The state-expense of the state budget or the judiciary budget.

Tax object
The income on which contributions is due shall include all kinds of remuneration and income from labour

Basis of assessment
Contributory income /All kinds of remuneration and income from labour between minimum & maximum fixed by the Public Social Insurance Budget Act.

Tax due date
-For the employer or the central-government department: shall remit the (health insurance) contributions simultaneously with the payment of the remunerations, including advance payments; the portion of the (health insurance) contributions which is for the account of the insured persons shall be remitted upon payment of the remunerations thereof and shall not be withheld from the advances there against, except in the cases where solely an advance has been paid for the relevant month;

-For any person who works without entering into an employment relationship: shall be remitted by the client on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;

-For any retired person: the amount of the pension or the amount of the pensions less the supplements thereto; any such (health insurance) contributions shall be for the account of the State Budget and shall be remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;

-For any recipient of benefits for temporary disability by reason of sickness, pregnancy, childbirth or child care: the amount of the benefit; any such (health insurance) contributions shall be for the account of the employer or the central-government department and shall equal the portion of the contribution due there from, being remitted upon payment of the benefits; the (health) insurance contribution for any person who is charged insurance contributions entirely for their own account shall be to the same amount, with any such contributions being remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;

-For any person deriving income from various sources, the (health insurance) contributions shall be charged on the sum total of the contributory incomes and shall be remitted within the time limits provided therefore according to the procedure established by Article 6 (10) of the Social Insurance Code;

-For any minister of the Bulgarian Orthodox Church and any other religion recognized according to a statutorily established procedure, who do not receive remunerations for activity performed: the minimum contributory income applicable to self-insured persons, as fixed by the Public Social Insurance Budget Act; any such (health insurance) contributions shall be remitted by the central governing body of the respective religion on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;

-For any recipient of unemployment benefit: the amount of the benefit as paid; any such (health insurance) contributions shall be for the account of the Unemployment Fund and shall be remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due;

-For any other persons, shall be charged health insurance contributions on a contributory income not lower than one half of the minimum amount of contributory income applicable to self-insured persons, as fixed by the Public Social Insurance Budget Act. Any such contributions shall be remitted on or before the 10th day of the month next succeeding the month wherefore the said contributions are due. Any such persons shall effect annual balancing of the contributory income according to the data stated in the tax return.

Deductions - allowances - tax credits - exemptions
Exemptions

I. Any Bulgarian citizens, including such holding dual nationality, who are obligated to pay health insurance in respect of themselves and who reside abroad for more than 183 days within a calendar year, need not to pay health insurance contributions until the end of the relevant calendar year, reckoned from the date of departure from Bulgaria, and for each succeeding calendar year after an application submitted in advance to the National Social Security Institute.

II. Any persons referred to in I. shall be reinstated to the health insurance entitlement thereof upon the lapse of six successive months after the return of any such persons to Bulgaria during which the person has been charged health insurance contributions.

III. Outside the cases under II., any persons referred to in I. may be reinstated to the health insurance entitlement thereof after the return thereof to Bulgaria upon payment of a lump sum amounting to 12 health insurance contributions, charged on the minimum monthly amount of contributory income applicable to self-insured persons as fixed by the Public Social Insurance Budget Act at the time of remittance of the contributions.

Tax collector
The National Revenue Agency.

Rate
6% of the contributory income.

Economic function
Labour Employed (paid by employers and employees)
Labour Non-employed

Tax revenue

Bulgaria Social security contribution - Health insurance contribution


This file was last updated on 2008/08/14.