Promulgated, State Gazette No. 118/10.12.1997

Modified, Constitutional Court Judgment No. 6/1998, promulgated, SG No. 35/1998; amended, SG No. 71/1998, No. 153/1998 (effective 1.01.1999), No. 50/1999 (effective 1.01.2000), No. 103/1999 (effective 1.01.2000), No. 111/1999 (effective 1.01.2000), No. 105/2000 (1.01.2001), No. 110/2001 (effective 1.01.2002), No. 40/19.04.2002 (effective 19.04.2002), No. 45/30.04.2002 (effective 1.01.2002); 61/26.06.2002; 118/20.12.2002 (effective 01.01.2003)


Article 22

(1) (Amended, SG No. 118/2002) The tax base of any person covered under Article 21 (3) herein, shall be determined by debiting the taxable income accruing thereto from the relevant activity with the following items:


4. (Amended, SG Nos. 105/2000, 110/2001, 118/2002) tax reliefs for donations, up to the amount of 10 per cent after the deductions under Items 1, 2 and 3;

Article 25

(1) (Amended, SG No. 111/1999, No. 105/2000, effective 1.01.2000) The tax base of any income accruing from the letting of any movable or immovable property, with the exception of any income referred to in Article 12 (4) herein, shall be determined by deducting 20 per cent expenses from the taxable income.

(2) (Amended, SG No. 105/2000, effective 1.01.2000, & No. 110/2001) The taxable income referred to in Paragraph (1) shall be debited with any relief for donations up to the amount of 10 per cent after deduction of the expenses allowed under Paragraph (1).

Chapter Thirteen


Article 28

(1) (New, SG No. 118/2002) The tax relief referred to in Item 4 of Article 22 (1) herein and referred to in Article 25 (2) herein shall be enjoyable subject to the condition that:

1. (Amended, SG No. 111/1999, No. 105/2000 & No. 110/2001) the donation is in favour of:

(a) any educational establishments and health-care facilities or organizations, where public-financed, and any medical-treatment facilities;

(b) any juristic persons, which are not merchants, with charitable, social, environmental, medical, scientific-research, educational, cultural and sports objects;

(c) any religious denominations registered in Bulgaria and in any Bulgarian municipality;

(d) any funds providing assistance to disabled persons or relief to victims of natural disasters;

(e) the Bulgarian Red Cross;

(f) any assistance to the socially disadvantaged, disabled persons, handicapped or parentless children;

(g) restoration and conservation of any historical and cultural landmarks;

(h) any cultural institutes or for the purposes of cultural, educational or research exchanges under agreements whereto the Republic of Bulgaria is a party;

(i) any non-profit corporations, registered in the Central Register of non-profit corporations for pursuit of public benefit activities;

(j) any scholarships instituted and provided for the instruction of schoolchildren and students at Bulgarian schools;

(k) any municipalities;

2. (Amended, SG No. 103/1999) the persons who have provided the donation do not have any unpaid declared state receivables or such ascertained by a tax assessment decision at the time of making of the donation.

(2) Where the donation is a non-cash asset, the value thereof shall be determined proceeding from the documents on acquisition of the gift by the donor, provided that the said acquisition occurred within three months before the date of donation.

(3) In any cases other than such covered under Paragraph (2), the value shall be determined according to the procedure established by the Local Taxes and Fees Act.

(4) Any donation covered under Item 1 of Paragraph (3) shall be deemed to be made as follows:

1. in respect of cash through receipt of a donor's certificate, of a bank transfer slip or other certifying document: as from the date of receipt of the funds by the donee;

2. in respect of movable things, immovable properties, or creation or transfer of limited real rights thereto: as from the date of receipt or of the conclusion of the transaction for transfer of the property or rights, as the case may be.