"Why are taxes necessary?"
Historically, the role of the state has evolved over time. Its existence is absolutely necessary. First of all, it has provided people with security: external – through defense, and internal – through the order it guarantees....
"Tax system"
Taxes can be classified into several categories. They actually build a complex system through which government spending is distributed to varying degrees among individual entities (households and entrepreneurs). Why is it important to ha...
"Indirect taxes"
Value Added Tax Value Added Tax (VAT) has been part of Bulgaria’s tax system since 01.04.1994 and represents the largest source of tax revenue for the state. It is regulated by European legislation and is applied in all Member Sta...
"Direct taxes and tax reliefs"
In direct taxes, the entity that bears the tax burden (consumer or entrepreneur) is also the one who pays the tax liability to the budget. They can be different depending on the subject of taxation, for example, income or property. Direc...
"Local taxes"
Indirect taxes and the main direct taxes – the tax corporate and the personal income tax – are paid into the central budget. Both entrepreneurs and consumers pay direct taxes into local municipal budgets. They form part of th...
"Other payments to the state"
People often equate all amounts they pay to state and municipal authorities with taxes. Although a significant portion of public obligations are collected by the National Revenue Agency (NRA), they are quite different in nature, and it i...
"Income from labour"
Income plays a central role in managing personal finances. It can be in both monetary and non-monetary form. The standard of living of each person depends on it. They are decisive for both savings and investments, as well as for ...
"Passive income"
In personal finance management, income that is not related to work and time investment is perceived as passive. Passive income is revenue that is earned with minimal or no active involvement from the person receiving it. It can be genera...
"Social insurance. Pensions fund"
Social insurance is a system through which the state provides protection to citizens in the event of certain social risks. The private sector may offer supplementary insurance that complements the public system but does not replace it. D...
"Other insurance. Health insurance"
All individuals employed under employment contracts are subject to insurance contributions to the remaining funds of the state social insurance (SSI) – General Sickness and Maternity and Unemployment. Additionally, contributions to...
