Glossary
Professional Pension Fund (PPF)
A fund for supplementary compulsory pension insurance, intended for individuals working under first and second category labour conditions, regardless of their year of birth. Contributions to the PPF are made by the employer and aim to provide funds for early retirement, before reaching the standard retirement age under the state pension system. Accumulated contributions are managed by a licensed pension insurance company on a capital basis through individual accounts of the insured persons and are used to pay additional lifetime or fixed-term pensions once the individual becomes entitled to such benefits under the Social Insurance Code.
Profession - glossary for children
A type of work that a person does, usually after training or practice. Examples of different professions are doctor, teacher, hairdresser, accountant, programmer.
Profit
The positive difference between revenues and expenses of an enterprise over a specific period. In personal finance, profit may refer to the positive difference between the purchase price and the selling price of an asset.
Profit - glossary for children
The money that is left after all business expenses have been paid. It is the money earned from the activity.
Progressive Taxation
A tax system in which the tax rate increases as the taxable base grows. For example, in the case of income, the higher a person’s income, the higher the percentage of tax applied.
Property Insurance
A type of insurance under which the insurer undertakes to compensate the insured for property damage suffered as a result of an insured event specified in the insurance contract. It covers both movable and immovable property against risks such as fire, natural disasters, theft, accidents, and other perils.
Property Tax
A local direct tax paid annually by owners (or users in certain cases) of buildings, apartments, houses, plots, and other real estate located within the territory of Bulgaria. It is regulated under the Local Taxes and Fees Act. Taxpayers are the owners of real estate – both natural and legal persons – and users who hold a real right of use over the property. In cases of co-ownership of a building, each owner owes tax proportionally to their share. The tax amount is determined by an ordinance of the respective municipality, usually as a percentage of the tax valuation. Exemptions apply to properties owned by the state and municipalities, certain cultural and religious sites, as well as, under specific conditions, the sole residence of a person with more than 50% reduced working capacity.
Proportional Taxation
A tax system in which all taxpayers pay the same tax rate (also called a flat tax), regardless of the size of the tax base, such as income or other taxable objects.
Public Services
Goods and services provided or ensured by the state for the population, financed from tax and non-tax revenues, accessible to all members of society, and non-excludable when used simultaneously, providing benefits not only to the individual but also to society as a whole (e.g., defence, healthcare, education, infrastructure, social welfare).
Public Services - glossary for children
Services for everyone, such as schools, hospitals, and national defence. They are paid for with money from the taxes collected by the government.
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