site.btaParliament Approves at First Reading Tax Exemption for Religious Organizations’ Rental Income

Bulgaria’s Parliament Thursday approved at first reading two draft amendments to the Corporate Income Tax Act submitted by the Council of Ministers.

One of the bills provides for the exemption from taxation of income earned by religious organizations from renting out or otherwise granting the use of immovable property located in Bulgaria.

In addition, in connection with the implementation of the National Recovery and Resilience Plan, the bill introduces a more favourable tax depreciation regime for electric vehicles by allowing an annual depreciation rate of 50%. The measure is proposed to apply to electric vehicles acquired on or after January 1, 2026. According to the explanatory notes, the change is also intended to help prevent the imposition of financial sanctions by the European Commission for unsatisfactory progress in meeting this target under the plan.

The second bill amending the Corporate Income Tax Act provides for technical adjustments related to Bulgaria’s transition from the lev to the euro as of January 1, 2026. These changes aim to clarify the source used for determining the exchange rate of the euro against other currencies. It is envisaged that the reference exchange rate of the euro against the respective currency will be published on the website of the Bulgarian National Bank.