In Bulgaria, child tax credits stand as a cornerstone of family support, crucial for fostering the well-being of children. As we enter 2024, it becomes essential to grasp the intricacies of these credits to ensure families can leverage them effectively amidst evolving tax regulations.
Exploring Child Tax Credit Provisions
For the year 2024, parents have various ways to access child tax credits, including annual, advance, and monthly options. The tax relief amounts remain consistent, providing substantial financial assistance to families with children up to the age of 18, including those with disabilities, i.e. the annual tax base is reduced::
- BGN 6000 for 1 child
- BGN 12,000 for 2 children
- BGN 18,000 for 3 or more children
- BGN 12,000 for disabled children.
Accessing Child Tax Credits
Parents can access these credits either through their employers or by personally submitting annual tax returns. Employers must receive declarations from parents between November 30 and December 31, 2024, adhering to relevant regulations.
Advance Availability of Tax Relief
A notable feature for 2024 is the advance availability of tax relief throughout the year.
Parents can opt for this option by providing a written declaration to their employer, ensuring compliance with specified conditions.
Monthly Reductions for Child Tax Allowance
Utilizing child tax allowances on a monthly basis results in reductions in the monthly tax base for employment income, providing ongoing support for families throughout the year:
- BGN 500 for one child
- BGN 1,000 for two children
- BGN 1,500 for three or more children
- BGN 1,000 for a child with 50% or over 50% type and degree of disability.
Important Considerations
It is important to note that parents on maternity leave in 2024 are not eligible for this deduction, but the tax relief can be used by the other parent. Benefits are available to one parent only. In cases when the amount of relief exceeds the sum of one parent’s annual tax bases, the other parent can claim the difference. The tax refund is not enforceable. It cannot be attached by bailiffs.
To sum it up, the benefits the child tax credits provide not only alleviate financial burdens but also underpin the government’s commitment to supporting families and nurturing the well-being of children.
For further inquiries or detailed information, please reach out to Eurofast HR and payroll experts in Bulgaria at sofia@eurofast.eu.
Hristiana Hristova
HR&Payroll Specialist
Eurofast, Sofia
sofia@eurofast.eu