Corporate tax revenues to remain in the municipalities with high unemployment rates

georgi.velev@klassa.bg

The revenue collected from the corporate tax levied on investors in low-income municipalities should remain in the local budgets and should not be infused into the state treasury. This idea for the promotion of investments in Bulgaria is currently being discussed by the Ministries of Economy and Finance, stated yesterday Minister of Economy, Energy and Tourism Traicho Traikov. He explained that the idea was for the ​​corporate tax revenue to remain in the municipalities' treasuries three years after the investments.

For the moment, this idea has the oral approval of Finance Minister Simeon Djankov, explained Traikov. He added that the scheme would be based on almost the same principle as the granting of concession when the municipality receives half of the concession revenue, while the remaining part of the proceeds are poured into the state treasuries. Currently, around 100 Bulgarian municipalities have higher unemployment rates and the business entities fail to pay the due corporate tax.

The proposal was made upon the submission of the amendments to the Investment Promotion Act. The Economic Ministry plans to add an additional criterion to the current incentives for investment attraction - job creation. It will be involved in the assessment for the issuance of certificates of "A" and "B" investor classes. The other change concerns the certificates of low-grade investments, which will be issued by the municipalities and not by the MEET and the Bulgarian Investment Agency. The documents will be again issued for particular priority economic sectors involving the processing industry, logistics, high-tech manufacturing activities and services. Regarding the Class B certificates, which will be issued by the Mayor of the respective municipality, the local municipalities will have the option to determine the thresholds and the criteria for the document issuance, as well as to apply the relevant incentive measures.

The third type of certificate for priority investment projects will be issued by the Council of Ministers, following a proposal of the Minister of Economy, Energy and Tourism.

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