SHOULD CIVIL CONTRACTS BE TAXED LIKE EMPLOYMENT CONTRACTS?

As a heavy blow to the middle class of self-employed persons defined Shteryo Nozharov, economic adviser at the BIA, the idea of civil contracts to be taxed as labor contracts. "It is planned to abolish the legally recognised 25% discount to reduce the taxable base, separately the social security contributions will increase by at least 5%. Thus, on an income of BGN 3,400, a worker will have to take out of his pocket over BGN 1,110 and pay it towards social security," he explained.

"In this situation, people will have a choice of either agreeing to pay such a new burden or looking for another solution. The elementary thing is - I create a company, we go to minimum wage and so the state will also lose what it has had income from so far. The other option is to sink into the grey sector," said Atanas Katsarchev, the financial expert of the trade union "Podkrepa".