Annual declaration of income from a civil contract

Annual declaration of income from a civil contract

Question:
Hello!

My father is a pensioner with TELK for disability, and recently also by seniority and age. He works on a civil contract and has earned an amount of BGN 6,000-8,000. Does he owe taxes and insurance since he is a pensioner and does he have to submit an annual tax return?
Thanks in advance!

Answer:
Hello,
Your father must submit an annual tax return for the income from citizens contract. From the received income, he has the right to use a tax relief for TELK, if it is more than 50%. It is in the amount of BGN 7,920.00, which is deducted from the tax base (income minus 25% by law - recognized expenses). If the tax base is lower, no tax will be owed. However, he will owe health insurance contributions in the amount of 8% on all income received, deducted by the legally recognized expenses (25%).
All this is valid only if the person has no income from an employment contract.
We hope we have been helpful!
Greetings!