New changes are planned for cash payments, and there will be new requirements for employers

The government approved the draft Law on Amendments and Supplements to the Tax-Insurance Procedural Code.

In order to increase the transparency of payments and limit the sector of the “gray” economy, the Law on the Limitation of Cash Payments envisages a reduction of the threshold of amounts admissible for making cash payments from BGN 10,000 to BGN 5,000.

As a result of negotiations with the representative organizations of the restaurant industry, the Act on the Limitation of Cash Payments proposes to introduce a requirement for employers from this sector who offer services in establishments categorized as two, three, four or five stars to pay the remuneration of employees must pay by bank transfer. Also, in the Law on Tourism for the same group of persons there are regulated requirements to ensure that the customers of their establishments must be able to make payments also through a terminal device poe.

The changes in the DOPC propose the introduction of a financial incentive for persons who submit information containing specific facts and circumstances that were not known to the revenue authorities and lead to the establishment and collection of additional obligations for taxes, mandatory insurance contributions and interest on them, in connection with hidden and/or undeclared taxable transactions, income, profits and assets. It is proposed that the amount of remuneration for the individuals is 10 percent of the additional revenues for the budget collected due to the disclosures. A lower threshold of the amount collected as a result of the submitted information is foreseen as a condition for the operation of the remuneration payment regime. This threshold is BGN 100,000. This will prevent the submission of information for the purpose of resolving interpersonal conflicts or competitive commercial conflicts.