The income tax exemption introduced in 2014 for those working on a minimum wage contract turned out to be accompanied by a series of restrictions. By law, these taxpayers have the right to recover in 2015 the full amount of the income tax paid in advance by the employers.
An Instruction from the National Revenue Agency makes it clear that the relief will not be available if the worker received tax-free income outside of his remuneration. Any income that is not paid by an employer is not income from employment relations and, regardless of its amount, deprives the person of the right to use the tax relief. This means that the relief cannot be used by persons receiving income of up to BGN 4,080 per year, who, however, in addition to income from employment relationships, have received income from: another economic activity, for example, a civil contract, activity as an agricultural producer, crafts, etc. .n.; rent; sale of property, incl.
when the income from the sale of property is non-taxable according to the State Income Tax Act; dividends, regardless of their amount. For example, a person can work half-time under an employment contract and receive a monthly remuneration of BGN 180 and at the same time receive BGN 10 under a civil contract. The presence of income that is not income from employment relationships automatically deprives the person of the right to use the tax relief.
Also, the relief cannot be availed of in the presence of any: sums received under the Family Child Benefit Act, as well as maintenance sums received from persons entitled under the provisions of the Family Code, notwithstanding that this are non-taxable income within the meaning of Art. 13, para. 1, item 17 of the Income Tax Act; benefits and supplements from social assistance received on the basis of the Act on the Integration of Persons with Disabilities, the Act on Child Protection, the Act on Family Benefits for Children or on another statutory act, as well as benefits and unemployment benefits received on the basis of a statutory act, regardless of the fact that these are tax-free incomes within the meaning of Art. 13, para. 1, item 15 of the Income Tax Act. For example, a person receives unemployment benefits based on the minimum wage for half a year and works for half a year on an employment contract under the Labor Code with remuneration equal to the minimum wage. The presence of unemployment compensation, regardless of the fact that the compensation is non-taxable income, deprives the person of the opportunity to use the tax relief; interest income, not only on deposits, but also on savings and current accounts. Persons in employment relationships with an annual income that does not exceed 12 minimum wages, who receive their salary on a current account in a bank, regardless of the null interest and regardless of its non-taxability in 2014 according to Art. 13, para. 1, item 8 of the Personal Income Tax Act, are excluded from the possibility of using tax relief because they have income other than income from employment relationships – the interest, in all probability in an amount measured in pennies, is charged and paid to him by a bank, not his employer; benefits for temporary incapacity for work. They are non-taxable income on the basis of Art. 13, para. 1, item 6 of the Income Tax Act, but insofar as they are paid by the National Income Tax, they are obviously income that is not income paid by an employer. pension income – working pensioners cannot use the relief, regardless of the fact that pensions are non-taxable income on the basis of Art. 13, para. 1, item 6 of the Income Tax Act; income from the rent of agricultural land – the rent is tax-free income, but it is not income from labor relations; income from the transfer of secondary raw materials.
The relief will be used for the first and last time for income earned in 2014 – the year in which it was introduced. However, it cannot be used through the employer in the annual equalization of incomes. He has no obligation to refund the currently withheld advance tax. The relief is availed only by submitting the annual tax return under Art. 50 of the Income Tax Act for 2014. The tax will be reimbursed by the National Revenue Agency on the basis of the annual tax return submitted in 2015 under Art. 50 of the Personal Income Tax for income acquired in 2014, on a personal account specified by the person.