At the end of last year, the 48th National Assembly adopted changes in The Personal Income Tax Act.
With the change, tenants are obliged from 2023 yes declare any amount paid by them annuities, with the current threshold of BGN 5,000 being dropped. The introduced change aims to track all rental income in the country. The statement is submitted annually by February 28 of the year following the year of payment of the income.
However, this turns out to be too much for farmers who pay amounts below BGN 5,000 to multiple owners. In this regard, the management of The National Association of Grain Producers (NAG) prepare position to the Ministry of Finance with a request to change this threshold. The opinion was announced by the chairman of the NAZ Iliya Prodanov nand the last meeting of the parliamentary agricultural committee held on May 31, 2023. The aim is to inform the deputies of the 49th parliament about the difficulty and to undertake corrections in this text of the law.
Given the fragmentation of agricultural lands, the small size of landed properties and, above all, the problematic nature of land relations caused by the unsettled and complex property relations between a large number of tenants, owners of agricultural lands, NAZ considers that for the implementation of this legal requirement, it will be necessary on the part of the farmers, significant financial resources for the construction of technical collateral, as well as additional human resources.
“The volume of information that farmers have to declare when filling in the personal data for each co-owner of land is administratively overwhelming not only for farmers, but also for their accountants,” believes Iliya Prodanov.
According to him, to meet the new requirement, farmers will have to invest in new software. “This, in turn, requires time and additional funds,” Prodanov told the deputies. Therefore, the members of the association request assistance from the people’s representatives to amend this requirement.
“We could probably reduce the threshold from BGN 5,000 to BGN 2,500 at first, so that it does not represent such a burden, but farmers should know that in the future they will be obliged to disclose all rents paid by them”. said MP Irena Dimova. She recalled that the change was introduced by the previous parliament.
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