GENERIC TAX NAME Social security contribution - State
Tax name in BG Държавно обществено осигуряване (задължителни вноски)
Tax name in English State social security (obligatory contributions)
Tax in force since 01/01/2000
Legal base
Social Insurance Code /Promulgated State Gazette, No. 110/17.12.1999, effective 1.01.2000; … last amended, SG No. 113/28.12.2007, effective 1.01.2008
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 social insurance contributor shall be any natural person, legal person or unincorporated association, as well as any other organization obligated by law to make social insurance contributions for other natural persons.
-A self-insured person shall be any natural person obligated to make social 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 are due shall include all kinds of remuneration and income from labour, but depends of the minimum and the maximum monthly / yearly amount of the income determined by the Public Social Insurance Budget Act for the relative year

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
The public social insurance contributions, which are paid for the account of the social insurance contributors, shall be remitted simultaneously with the payment of the remuneration due or of a part of the said remuneration.
The contributions for self-insured persons shall be remitted in person or through contribution payment centres on or before the 10th day of the month succeeding the month wherefore the said contributions are due.
Registered agricultural producers and tobacco producers, who perform only farming activity and are insured only against disablement by general sickness, old age and death, may remit the contributions due there from on or before the 31st day of March of the year succeeding the calendar year wherefore the said contributions are due.
Social insurance contributions for persons working without entering into an employment relationship shall be remitted by the social insurance contributor on or before the 10th day of each month succeeding the month wherefore the said contributions are due.
Social insurance contributors shall remit social insurance contributions each month separately by making transfers from their accounts to the respective account of public social insurance and supplementary compulsory retirement insurance upon payment of remunerations, including advance payments. The social insurance contributions due on payments upon termination of the insurance or upon leave other than the regular payment of wages or advance payments shall be remitted together with the first succeeding social insurance contributions due.
The portion of social insurance contributions which is for the account of the insured persons herein shall be remitted upon payment of their remunerations and shall not be deducted from advance payments with the exception of cases when only advance payment has been made for the respective month.

Deductions - allowances - tax credits - exemptions

Tax collector
The National Revenue Agency.

Rate
(1) Contribution rates for public social insurance funds shall be set as follows:

1.26.5 per cent plus the contribution under Item 8 (see below): for persons working under Work Category III conditions, who are insured against all social insurance risks;

2.29.5 per cent plus the contribution under Item 8 (see below): for persons working under Work Category I and II conditions, who are insured against all social insurance risks;

3.29.5 per cent plus the contribution under Item 8 (see below): the career servicemen under the Defence and Armed Forces of the Republic of Bulgaria Act and the civil servants under the Ministry of Interior Act and the Implementation of Penal Sanctions Act and the investigating magistrates under the Judicial System Act , who are insured against all social insurance risks;

4.25.5 per cent plus the contribution under Item 8 (see below): for persons insured against all social insurance risks except unemployment; if such persons work under Work Category I and II conditions, the social insurance contribution shall be 28.5 per cent plus the contribution under Item 8;

5.22 per cent plus the contribution under Item 8 (see below): for persons insured against disablement, old age and death and against employment injury and occupational disease; if such persons work under conditions of Work Category I and II, the social insurance contribution shall be 25 per cent plus the contribution under Item 8 (see below);

6.25.5 per cent: for persons insured against all social insurance risks, except employment injury and occupational disease and unemployment;

7.22 per cent: for persons insured against disablement, old age and death;

8.from 0.4 to 1.1 per cent: for employment injury and occupational disease, determined by the Public Social Insurance Budget Act for the respective year, by groups of principal economic activities.

(2) The income on which contributions are due shall include all kinds of remuneration and income from labour. The Public Social Insurance Budget Act shall determine:

1.the maximum monthly amount of the contributory income during the calendar year;

2.the minimum monthly amount of the contributory income during the calendar year for self-insured persons;

3.the principal economic activities and occupation groups for which minimum monthly contributory income is introduced for the calendar year by activity and group of occupations, as well as the minimum contributory income for them.

(3) Social insurance contributions for factory and office workers and the contractors under contracts for management and control of commercial corporations and the persons performing work and receiving income from elective office, as well as the ministers holding a spiritual title of the Bulgarian Orthodox Church and other registered denominations under the Religious Denominations Act shall be due on the greater of the gross monthly remunerations as received and the minimum contributory income and on the lesser of the maximum monthly amount of the contributory income and the gross monthly remunerations as received. Social insurance contributions for factory and office workers and the co-operative members, who perform work and receive remuneration at the co-operative; the co-operative members, who work at the co-operative without entering into an employment relationship, shall not be insured against unemployment and the contractors under contracts for management and control of commercial corporations and persons who perform work without entering into an employment relationship and who receive a monthly remuneration equal to or exceeding one minimum wage less the expenses allowed for standard deduction, unless insured on different grounds during the relevant month and the persons who perform work without entering into an employment relationship and who are insured on different grounds during the relevant month, regardless of the amount of the remuneration received shall be divided between the social insurance 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

(4) Gross remuneration for the contractors under contracts for management and control of commercial corporations and persons who perform work without entering into an employment relationship and who receive a monthly remuneration equal to or exceeding one minimum wage less the expenses allowed for standard deduction, unless insured on different grounds during the relevant month and the persons who perform work without entering into an employment relationship and who are insured on different grounds during the relevant month, regardless of the amount of the remuneration received, on which social insurance contributions are due, shall be determined after deduction of allowable expenses.

Social insurance contributions for civil servants and the judges, prosecutors, investigating magistrates, executive judges, recording magistrates, and judicial officers and the career servicemen under the Defence and Armed Forces of the Republic of Bulgaria Act and the civil servants under the Ministry of Interior Act and the Implementation of Penal Sanctions Act shall be due on the lesser of the gross monthly remunerations received related to such relations and the maximum amount of the contributory income, and shall be at the expense of the state budget or the judiciary budget, respectively.

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

Tax revenue


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