The Ministry of Finance proposes a clear order for parents to benefit from tax relief for children. Until now, parents without parental rights have also benefited from such benefits, without notifying the parent with the right to receive the relief, which is to the detriment of the child himself. The change is part of a package of tax laws that the finance department is publishing for public discussion.
"The purpose of the change is to explicitly determine the sequence of use of the tax benefits by both parents, while at the same time protecting the rights of the parent who has been granted the exercise of parental rights,", the finance department explains.< /p>
According to the proposed changes in the Personal Income Tax Act, the same provisions will also apply in cases where the parents are not married. There is also an explicit provision for the recovery of tax relief used in violation of the law.
Special attention in ZKPO is given to the synchronization of Bulgarian legislation with the requirements of the Organization for Economic Cooperation and Development (OECD). Bulgaria is about to become a member of the organization. For this reason, the law proposes changes related to the application of the tax regime for multinational and large national groups of enterprises. The goal is to prevent the tax base from shrinking due to the companies' operations in different countries, BNT reported.