By claiming a profit tax rebate you can buy a new technique!

Only 9290 farmers have benefited from the relief for four years

Farmers, as sole proprietors or firms for the production of unprocessed agricultural produce, are entitled to state aid for the purchase of new buildings or agricultural machinery - "Aid for investments in agricultural holdings through the assignment of corporate tax", writes Fermer.bg.

The Ministry of Agriculture, Food and Forestry (MZHG) explained in detail the possibility of using this aid by publishing on its website "State Aid Guidelines" Aid for investment in agricultural holdings through the assignment of corporate tax ". According to these rules, a total of BGN 455 million will be allocated for the programming period 2014-2020.

The Law on Corporate Income Taxation  sets in Article 189b the tax relief framework, which constitutes State aid to farmers.

According to the law, corporate tax is remitted to the amount of 60% to taxable persons registered as farmers for their tax profits from the production of unprocessed plant and animal products.
To make use of the discount, several conditions must be met at the same time.
The first is the remitted tax to be invested in new buildings and new agricultural machinery. They must be acquired by the end of the year following the year for which the discount is granted.
Purchase must have taken place under market conditions and the farmer must continue to operate for a period of at least three years after the year for which he received the rebate. This must be explicitly declared in annual tax returns each year until the expiry of the three-year period.
In addition, the tax deducted must not exceed 50% of the present value of the assets acquired as of the grant date. The value of these assets may not exceed € 500,000.
The guidelines published by the Ministry of Agriculture and Foods state that the recipient of the aid is directly entitled to the tax relief.
Bulgarian authorities do not exercise ex-ante control and do not accept additional documents, "the document says.
The ministry adds that receiving the aid under the scheme depends on compliance with the requirements of the CITA, the implementation of which is subject to ex-post control by the National Revenue Agency (NRA). If any of the applicable conditions are not met, the tax deducted is subject to refund together with the relevant interest.
The Personal Income Tax Act (PITA) states in Article 48: "The tax on the annual tax base for business income as a sole trader shall be assigned to 60% of persons registered as farmers for the annual tax base of production of unprocessed plant and animal products under the Corporate Income Tax Act for the assignment of corporate tax in the form of a tax relief representing State aid for agricultural Holders. "

For the four years in the period 2010-2013, the remitted tax to farmers amounted to a total of about BGN 210 million. Of these, almost BGN 125 million were concessions for agricultural companies under the Corporate Income Tax Act and about 85 million - for farmers who are taxed under the Personal Income Tax Act. Official data shows that a total of 9290 farmers benefited from the rebates.
 
"It is envisaged that during the period including tax years 2014-2020, the maximum budget will be 455 million BGN for the implementation period," notes the MAF Guidelines.
 

Source: Fermer.bg