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February 22, 2021

Amendments in the tax law provisions introduced by LAS AMADSE

In the State Gazette, issue 14 dated 17 February 2021 the Law on Amendment and Supplementation of the Act for the Measures and Actions During the State of Emergency Declared with Decision Dated 13 March 2020 of the National Assembly and Overcoming of the Consequences Thereof (LAS AMADSE) was promulgated. By means of the Transitional and Conclusive Provisions of the LAS AMADSE, amendments to the Corporate Income Taxation Act (CITA), to the Individuals’ Income Taxes Act (IITA) and to the Local Taxes and Charges Act (LTCA) have been adopted. The amendments are effective from 17 February 2021.

1. Amendments to the CITA and IITA


  • Taxation of online betting with corporate tax

Until now, the organizers of gambling games subject to a state charge under Art. 30, para. 3 and para. 4 of the Gambling Act (GA) were exempted from corporate tax for this activity. According to the amendments adopted, online betting for which such charge is due under Art. 30, para. 4 of GA, fall out of the scope of Art. 176a of CITA, respectively this activity shall become subject to corporate tax.


  • Definition “jurisdictions with preferential tax regimes”

The provision of item 64 of § 1 of the Additional Provisions of CITA regarding the definition “jurisdictions with preferential tax regimes” is specified and the scope of the new definition shall include also “the countries/territories included in the EU list of non-cooperative jurisdictions for tax”. The addition was made because until now the protective measures were applied to the national list of jurisdictions with preferential tax regimes according to Order № ZMF-1303/21.12.2016, which, however, does not fully coincide with the EU list.


  • Extension of the deadline for using the tax relief for farmers

The deadline for using the tax relief provided in art. 189b of CITA, representing state aid for farmers, has been prolonged until 31 December 2022, including for the corporate tax for 2022 (a new § 74a of TCP of VATA has been introduced). The change is in line with the extended deadline for implementation of Regulation 702/2014 aiming to maintain the existing state aid for farmers until the adoption of the EU reform of common agricultural policy.


In accordance with this change, the respective provision in the Individuals’ Income Tax Act has been amended. The deadline for using the tax relief under Art. 48, para. 6 of IITA, representing state aid for farmers, shall be prolonged until 31 December 2022, including for the tax on the annual taxable base under Art. 28 of IITA for 2022 (new provision § 81a of TCP of VATA).


  • Rules for advance payments for newly established companies in 2020

An explicit provision has been introduced (§ 78a of TCP of VATA), which regulates that newly established in 2020 taxpayers do not make advance payments for corporate tax under CITA in 2021. From the rule are excluded newly established entities which are result of reorganization of a company under the Commercial Act, which shall make quarterly advance payments for corporate tax in 2021. The change aims to avoid contradictory interpretation of the current rules provided for in the provisions of Art. 83, para. 2, item 2, art. 118 and Art. 147 of CITA.

2. Amendments to the LTCA

  • In force as of 20 April 2019, the text of Art. 22 LTCA has been amended. The change was made in connection with the announcement of the provision of Art. 22 for anti-constitutional with DCC, prom. SG, no. 32 from 16.04.2019


  • The other amendments in LTCA aim at linking the deadlines for entry into force of the provisions of the LTCA on the new rules for determining the municipal waste charge with the announcement of the results of the National Population and Housing Census in 2021 (as result of postponement of the census due to the epidemic emergency situation caused by COVID-19).

3. Increase in the unpaid leave days, which in 2021 are considered as length of contributory service

In Art. 9, para. 2, item 3 of the Social Security Code (SSC) it is provided for the length of unpaid leave of up to 30 working days in one calendar year to be considered as length of contributory service. This time shall be reflected in the Declaration form № 1.

The regulations in force in 2020 provided for an increase of these days to up to 60 working days, and with the current amendments to LAS AMADSE in 2021 the days of unpaid leave, which will be considered as length of contributory service, are increased to 90 working days.


This material is not exhaustive, is only of general nature and does not represent a specific advice or consultation. Should any additional questions arise, please do not hesitate to contact us at tel.: 02/943 37 00, fax: 02/943 37 07, е-mail: or at: 38, Oborishte Str., Sofia 1504.

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