Bulgaria will keep its flat tax rate of 10% on personal incomes

Bulgaria will keep its flat tax rate of 10%, Bulgarian National Assembly has decided, rejecting motions to re-introduce progressive taxation.

Members of parliament from the minority government coalition of centre-right GERB and right-wing Reformist Block have introduced draft bill for amendment of the Bank Bankruptcy Act aiming to disallow the set-offs at Corporate Commercial Bank (CorpBank) while its bankruptcy is in progress. Pursuant to the draft bill any set offs between deposit receivables and loan obligations in a bank executed after the date, on which the bank has been put under the central bank’s special supervision, shall be considered invalid.

As per the statements of one of the ruling party MP, the idea of this amendment is to try to make invalid those set-offs which infringe on the interest of the other creditors and, most of all, the Bank Deposits Insurance Fund. The latter will become CorpBank’s main creditor once it replaces the guaranteed depositors.