The Bulgarian Flat Tax is No Longer What It Was
The Bulgarian Flat Tax is No Longer What It Was

Summary/Abstract: The idea of a flat tax dates to the middle of the last century. At the end of the 20th and the beginning of the 21st century it finds practical realization in many countries of Central and Eastern Europe (including Bulgaria). However, our tax is unique because it is proportional. The flat personal income tax in other countries is progressive. This article is dedicated to the application of this specific tax technique in Europe and in our country. The article is structured in three parts. Part one presents the pioneering theoretical ideas for flattening the multi-rate structures of the personal income tax and the practice of so-called flat tax in Central and Eastern Europe (mainly in the Member States of the European Union) in recent decades. Part two examines the specific model of flat personal income tax in Bulgaria – proportional taxation of personal income from 01.01.2008. Part three examines the effect of the introduction of a de facto tax- free threshold for families with minor children in Bulgaria in 2021.

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