The child tax relief under Art. 22g of the Bulgarian Personal Income Tax Act (PITA) remains one of the most popular financial relief mechanisms for working parents with minor children residing in Bulgaria.
In this guide, STATUM explains who qualifies, the deductible amounts, and the procedure to claim your tax refund.
1. Eligibility Criteria
To qualify for child tax relief in Bulgaria, the parent or guardian must satisfy the following conditions:
- The child is an EU/EEA or Bulgarian resident;
- The child has not reached 18 years of age by the end of the tax year;
- The child is not placed in full state-funded institutional care;
- The claiming parent has no outstanding public debts (unpaid taxes, traffic fines) subject to forced collection.
2. Deductible Amounts
The tax relief functions by reducing your total annual taxable income base:
- For one minor child;
- For two minor children;
- For three or more children.
The actual cash refund equals 10% of the deductible amount (matching the flat Personal Income Tax rate).
3. How to Claim Your Tax Refund
Working parents in Bulgaria can claim this tax relief through two methods:
- Through your primary employer during year-end tax reconciliation (between Nov 30 and Dec 31);
- By filing an Annual Income Tax Return (Art. 50 PITA) directly with NRA by April 30th.
4. Get Professional Assistance from STATUM
If you have questions regarding your annual tax return or earn income from freelancing, rental properties, or foreign dividends, STATUM advisors in Sofia and Varna are ready to assist you.