Date: 24.09.2012

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The introduction of a single tax and insurance account, stipulated in the draft amendments to the VAT Act, will reduce the administrative burden on businesses, the Bulgarian Industrial Association (BIA) stated its position on Monday in connection with the intended introduction of a single tax and insurance account in the Tax-Insurance Procedure Code (TIPC).

The positions circulated in the public space that the use of a single payment document and a single account for taxes and social security contributions would place at risk some of the insured people who might lose their insurance rights are not justified. Information about the amount of the social security income, the outstanding contributions and the tax under Art. 42 of TIPC for insured people paid in advance, is being submitted to the National Revenue Agency (NRA) each month by employers, insurers and self-insured people.

The reduced number of payment orders for effecting payment cannot lead to a change in the type and amount of information about the insured people submitted by businesses and cannot change the grounds for the payment. The payment order is a document - a form of a payment instrument and does not serve to transfer tax and social security information or to allocate money to various funds of the budget.

BIA supports the projected legislative amendments and the decisive steps of the Finance Ministry and NRA for reducing the number of documents for payment of tax and social security liabilities.