The MFA and the MoF are discussing choices indicated by Brussels
In an in depth reply addressed to MP Ivan Ivanov, Minister of Agriculture Georgi Tahov knowledgeable concerning the response of the European Fee concerning the request from Bulgaria tax aid for farmers – people.
As is thought, with the most recent modifications to the Private Earnings Tax Act in December 2023, Artwork. 22h, which reads: “People registered as farmers who’ve obtained a subsidy or different assist from the European Agricultural Assure Fund and the European Rural Growth Fund can profit from tax aid by lowering the quantity of the annual tax bases beneath Artwork. 17 with the quantity of the subsidy obtained through the yr, respectively assist from the 2 funds, as much as the quantity of the annual tax bases earlier than the discount, however with not more than BGN 100,000.”
This textual content was purported to enter into power on January 1 of the yr through which the EC dominated positively on this tax aid.
Georgi Tahov recounts the EC’s response, based on which the implementation of such a measure results in an electoral benefit, which might result in the appliance of state assist guidelines.
“Moreover, pure individuals finishing up an financial exercise could be certified as enterprises falling inside the scope of State assist management. Nonetheless, the particular tax reliefs for a given group of farmers would in all probability characterize operational assist, which is in precept incompatible with the inner market”, Georgi Tahov factors out.
“The Fee concludes that the measure is geared toward small producers – pure individuals and suggests as an possibility to contemplate the usage of the alternatives supplied by the help guidelines de minimis in agriculture.’
Georgi Tahovi additional writes that the Ministry of International Affairs notified the Ministry of Finance concerning the opinion of the EC on April 10 of this yr. and at this time second, the probabilities for the appliance of this kind of tax aid for farmers – pure individuals are being mentioned.
The Minister of Agriculture recollects that the state assist instrument supplied by the EC regulates each a person assist ceiling of as much as 25,000 euros for 3 finances years, and a nationwide ceiling of 63,624,050 euros. Minister Takhov specifies that the Ministry of Well being makes use of this instrument within the occasion of crises that require the intervention of the state via monetary assist.
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