Expanded scope and non-taxable amount of food voucher expenses for 2022

On 4 March 2022, the State Gazette No. 18 promulgated the State Budget Act of the Republic of Bulgaria for 2022[i], which introduced changes to food vouchers under the Corporate Income Tax Act as follows:

• Firstly, the scope of the so-called "food vouchers" has been expanded, so they can also be used to pay for household utilities, such as electricity, heating, natural gas and water, activities carried out by cultural organizations under the Law on the Protection and Development of Culture, and film projections under the Film Industry Act.

• In addition, the tax non-chargeable amount of social expenditure on food vouchers is increased from BGN 80 BGN to BGN 200 monthly. The taxable amount for the purposes of determining tax on expenses for the calendar month is the excess of those expenses over BGN 200, including the amount of food vouchers already provided, for each of the months to which they relate for each employee. Where the conditions for non-charging the food vouchers amounts with tax on social expenditure are not fulfilled, the taxable base is the total amount of the accrued expense for the calendar month.

1 § 1, Para 2 to 8 et seq. of the Transitional and Final Provisions of the State Budget Act of the Republic of Bulgaria for 2022