Translation from the Bulgarian

Art. 1. In the budget of the municipality shall be paid the following:

local taxes:

a) real property tax;

b) inheritance tax;

c) gift tax;

d) property transfer tax;

e) tax on the transport vehicles

f) other local taxes regulated in a Law.

local fees shall be:

a) garbage;

b) use of market places, auction places, pavements, squares, street lanes;

c) use of kindergartens, day schools, vacation centres, hostels, social care centres and other forms of social service;

d) holidays or medical treatment in a resort;

e) extraction of aggregates;

f) technical services;

g) administrative services;

h) dog fees;

j) purchase of grave plots;

k) safeguard and protection of agriculture plots;

l) other local fees determined in a Law.

Art. 2. For all other services provided by the municipality, with the exception of those under Art. 1, the Municipal Council shall determine a price.

Art. 3. (1) The fees may be simple or proportionally calculated and are paid through a bank, cash or through purchase of municipal fiscal stamps.

(2) The Minister of Finance may specify the cases when the fees shall be paid through purchase of fiscal municipal stamps or cash.

Art. 4. (1) The amounts of the local taxes shall be determined by the Municipal Councils within the limits provided in this Law.

(2) The decisions of the Municipal Councils shall and the Mayors' ordinances under this Law shall be publicly announced within seven days.

Art. 5. (1) The fees for [performance of] activities which have been paid to the Republican and have been later passed off to local budgets, or vice versa, shall be collected in the amounts determined as state or municipal fees, as the case may be, and shall be paid to the [corresponding] budget which secures the performance of the that activity.

(2) In cases when the Municipal authority shall be bound to perform an activity or issue a document for which a fee is payable, the full amount of the fee collected, or part of it, shall be paid to the local budget.

Art. 6. The tax returns under this Law shall be filed by the taxpayers or their representatives in a format which has been approved by the Minister of Finance and published in the State Gazette.

Art. 7. The local taxes shall be collected by the tax administration authorities, while the fees shall be collected by the municipal administration, unless otherwise provided in this Law.

Art. 8. Any taxes and fees under this Law which have not been timely paid shall be collected with interest computed in accordance with the provisions of the Law for Determining the Interest for Taxes, Fees and Similar State Receivables and other state receivables following the provisions of the Law for Collection of State Receivables.

Art. 9. (1) The tax value shall be updated in accordance with the Attachments to this Law no later than September 30 of the preceding year when the index of real estate market prices is increased with more than 20 per cent accrued for the period since their last update.

(2) The index under para 1 shall be determined by the National Statistics Institute.

CHAPTER TWO

LOCAL TAXES

Title One

REAL PROPERTY TAX

Art. 10. (1) Real property tax shall be levied on the buildings, courtyards and land parcels, located within the territory of the country, as well as agricultural land and forests with appurtenances thereto, for the area which is regulated.

(2) Agricultural land and forests shall not be subject to tax.

Art. 11. (1) Taxpayers shall be the owners of taxable real property.

(2) The owners of buildings which have been constructed on a land parcel, belonging to the state or municipality, shall pay tax for the plot as well.

(3) In case of real rights to use granted, the taxpayer shall be the user.

Art. 12. (1) Whenever the real rights for ownership or use are held by more than one person all of them shall be proportionally liable for this tax, according to the share they own.

(2) Each of the co-owners or co-holders of the real rights to use, as the case may be, shall be allowed to pay the tax for the whole property.

Art. 13. The tax shall be paid regardless of whether the real property is used or not.

Art. 14. (1) In the case of newly constructed or otherwise acquired real property the owner or user, as the case may be, shall within two months of the occurrence of the event in question, inform the Tax Office of where the property is located [i.e. for the locality in which the property is situated] by filing an annual tax return for taxation of real property.

(2) In case of change of any circumstance, significant for determining the amount of the tax, the taxpayers shall notify the Tax Office following the procedures and deadlines under para 1.

Art. 15. (1) The tax shall be due for the newly constructed buildings or parts of buildings as of the beginning of the month following the moth during which those were completed or occupation is taken.

(2) In the case of transfer of property the recipient shall be liable for the tax as of the beginning of the month following the change of ownership or way of use, except in cases when the tax has been paid by the person transferring the property.

Art. 16. (1) In the case of partial or full destruction of buildings, as well as in the cases of real property turning from taxable into non-taxable, or vise versa, the taxpayers shall advise the Tax Office of where the property is located within the deadlines determined in Art. 14 para 1.

(2) In the cases under para 1 the obligation for payment of the tax shall be terminated, or shall arise, as the case may be, as of the beginning of the month following the change.

Art. 17. Legal entities, sole proprietors and other persons who have the obligation to keep books of accounting, shall file annually a real property tax return no later than February 1 each year for each real property separately, in the Tax Office where it is situated.

Art. 18. The tax authority shall check the returns filed. It may request additional data about the taxable property, compare the data reported in the return to that in the accounting books, architectural and construction plans, regulation plans and [other] documents, on the grounds of which the property is used or owned, and, when necessary, measure the property with the help of the Technical Service authority within the municipality.

Art. 19. (1) The tax shall be determined on the basis of the tax value of the real property under Art. 10 at January 1 in the year for which it is due.

(2) The tax value of the property acquired during the course of the year shall be determined at the first day of the month following the month of acquisition [of that property].

Art. 20. The tax value of real property belonging to individuals shall be determined according to Standards, as shown in Attachment 1, depending on the type of property, location, surface area, type of construction, depreciation, and the taxpayers shall be notified about that value.

Art. 21. (1) The tax value of the real property of companies which are booked in as fixed assets under the Accountancy Law shall be the properties book value.

(2) Whenever accounting data is lacking the tax value shall be determined by the tax authority at the expense of the taxpayer. In those cases the tax authority may use licensed valuers.

Art. 22. The tax shall be determined on the basis of the tax value of the real property to the amount of 1,5 per mille.

Art. 23. The tax shall be determined by a tax administration body and announced to the taxpayer or his/her legal representative following the procedures in the Tax Procedures Law.

Art. 24. (1) Exempt from tax shall be:

1) municipalities;

2) the state, except in cases when state-owned property is used by persons who are not exempt from the tax;

3) National Social Security Institute;

4) Public reading-halls (chitalishta);

5) buildings owned by other countries, occupied by consular or diplomatic representatives in the conditions of reciprocity;

6) buildings owned by the Bulgarian National Bank;

7) buildings owned by the Bulgarian Red Cross;

8) buildings used by graduate schools and by the Bulgarian Academy of Science;

9) places of worship of the legally registered religious beliefs in the country

10) parks, sports grounds, playgrounds and similar properties for public use;

11) buildings which are monuments of culture;

12) museums, galleries, libraries;

13) buildings, exclusive of residential buildings, used [immediately] for the purposes of operating the public transport;

14) agricultural buildings of agricultural producers which are used for agricultural activity;

15) [prefabricated] temporary constructions used for assisting the construction of a new building or equipment until the latter is completed and occupation is taken;

16) buildings which have been duly announced to be endangered from ruin or in bad sanitary condition;

(2) Exempt from tax under subparas 4,6 and 7 of para 1 shall be under the conditions of subpara 2, while the exemption under subparas 8, 10, 11 and 12 shall be applied if the property is not used for performance of economic activity.

(3) Paragraphs 1 and 2 shall be applied for parts of real property as well.

Art. 25. (1) For property used as a main residence the tax shall be due with a 50% reduction.

(2) For property used as a main residence of an impaired person of the first or second category of disability the tax shall be due with a 75% reduction.

Art. 26. (1) Citizens shall file a tax return in the Tax Offices according to their place of residence in which the tax value of the properties, owned by them [and located] within the territory of the country, shall be stated.

(2) Individuals not having a permanent place of residence in the Republic of Bulgaria shall file a return under para 1 in the Sofia Regional Tax Administration Office.

(3) Whenever the aggregate amount of the values of such properties exceeds 100,000,000 BGL, additional tax shall be due to the amount of 3 per mille on the excess of this value.

Art. 27. The individuals shall claim their right to exemption from taxation or to a tax relief by filing a tax return before the deadlines provided in Art. 14 para 1.

Art. 28. (1) The tax on real property shall be paid in four equal instalments within the following deadlines: March 31, June 30, September 30 and November 30 of the year for which it is due.

(2) To those who have prepaid the whole of the year s tax within the first deadline, a discount of 5 per cent shall be made.

(3) The property tax shall be income for the local budget of the municipality on the territory of which the property is located, while the additional tax shall be payable to the local budget of the municipality where the taxpayer is registered; in case of Art. 26 para 2 - [it shall be payable to] the Sofia Regional Tax Administration budget.

 

Title Two

INHERITANCE TAX

Art. 29. (1) Inheritance tax shall be levied on property, situated within the country or abroad, inherited by will or by law, by Bulgarian citizens, as well as the property of non-residents within the territory of the country.

(2) The property of persons deprived of citizenship shall be taxed as such of Bulgarian citizens, whenever their permanent place of residence is on the territory of the country.

Art. 30. (1) The inherited property shall include the movable and immovable property possessed by the deceased, as well as real rights on such property, other real rights, claims and liabilities at the moment of establishment of the inheritance, unless otherwise provided in a law.

(2) Property received from a third party under an agreement with the deceased in case of death of the deceased, shall be taxed as inherited property.

(3) Para 2 shall not apply if the agreement has been concluded in discharge of an obligation envisaged in a Law.

Art. 31. The inheritance tax shall be paid by heirs by will or (if there is no will) those whom the Law provides shall inherit, as well as by the heirs by will [receiving a whole real property].

Art. 32. (1) When an inheritance is established, the taxpayers under the preceding article or their legal representatives shall be obliged within six months to file a tax return in the Tax Office of latest residence of the deceased; if the latter has resided abroad, the tax return shall be filed in the Tax Office of where the larger part of his/her property in the country is located.

(2) In cases when the heir by law or by will is not a spouse, dependent, parent, brother or sister, the six-month period for filing shall begin from the moment of learning of the fact of the establishment of an inheritance.

(3) For property of people [who have been] declared missing by Court, a tax return shall be filed by those who appear as their heirs at the moment of receiving the last news from those declared missing. In such cases the six-month period for reporting shall begin at the moment of accession to the property.

(4) Whenever the heir is a person [who has been] conceived at the moment of establishing the inheritance, and that person is born alive, the period for reporting under para 1 for his/her legal representatives shall begin from the day of his/her birth.

(5) A return which has been filed within the deadlines by one of the heirs shall be valid for all the rest of the heirs.

(6) In the return the taxpayers shall describe the inherited property according to type, location and value.

(7) Inherited property which has become known to the taxpayers after the expiration of the deadlines under the preceding paragraphs shall report it within one month from discovering the event. In those cases the tax shall be re-calculated.

Art. 33. (1) Inherited property, with the exception of exempt property, shall be determined and valued in BGL at the moment of establishment of the inheritance, as follows:

1) real property - based on the tax value in accordance with Attachment 2;

2) foreign exchange and precious metals - according to the Central Bank's rate;

3) securities - according to their market value and in cases when the market value cannot be established without considerable difficulties, those shall be valued according to their nominal value;

4) transport vehicles - according to their insurance value;

5) the remaining movables and real rights - according to their market value;

6) enterprises and equity interest in commercial partnerships or co-operatives - according to their market value; whenever establishing the market value leads to considerable difficulties or requires considerable expenses, according to the accounting data.

(2) The liabilities of the deceased shall be also be valued in accordance with the provisions of para 1.

(3) The rights and obligations of the deceased, which were not established shall be reported, but shall be taken into consideration at the time of calculating the total inherited property after their amount is determined. In such cases the amount of the tax shall be re-calculated.

(4) Upon request by the tax authorities or by the interested party the insurers shall issue a verification stating the insurance value of the property within seven days.

Art. 34. (1) The assets of the taxable inherited property as determined under Art. 33 shall be reduced by:

1) the amount of the liabilities of the deceased, determined in good title, at the day of establishment of the inheritance, on the condition that no exempt property shall be acquired against these liabilities. Liabilities to creditors shall not be subtracted, whose receivables have been redeemed [o the part of the deceased] but which do not comply with the deadlines under Art. 32;

2) the rights and claims granted to state or municipalities by the heirs, following the established procedures and within the 6-month deadline under Art. 32;

3) funeral expenses amounting to no more than 6 average monthly wages for the country, determined at the moment of establishment of the inheritance;

4) reliefs envisaged in the law.

Art. 35. (1) The taxable inherited property shall be divided into inherited shares where each heir is allocated a share under the Inheritance Law.

(2) The inherited shares shall be increased or decreased, as the case may be, with the value of the property inherited by will, valued in accordance with the provisions of Art. 33.

Art. 36. (1) The tax shall be determined separately for each heir under this Law or by will, in accordance with the following tables:

1) For spouses and heirs of direct descent

Table 1

2) For heirs of a collateral line

Table 2

i) For other heirs

Table 3

Art. 37. The tax shall be determined for each heir under this Law or by will separately by means of a Notice of Assessment which may be appealed within the deadlines designated in the Tax Procedures Law.

Art. 38. (1) Exempt from tax shall be:

1) property of people who have died for the Republic of Bulgaria or [died] while discharging official duties, or in production accidents or natural disasters;

2) property inherited by the state, the municipalities, the Bulgarian Red Cross, the Public Reading Halls and to other legal entities which are not traders;

3) usual and common household furnishings;

4) minor agricultural/farm equipment;

5) libraries and musical instruments;

6) objects of art the author of which is the deceased, any of the heirs or their relatives of direct descent without limitation while for the collateral line, up to the fourth generation;

7) the pensions which have not been received by the deceased;

8) property located abroad and belonging to Bulgarian citizens for which inheritance tax has been paid;

(2) In cases when two people have died at the same time or immediately after each other and one of them is the heir of the first one, tax shall not be due for the inherited share acquired by the deceased heir.

(3) Exemptions under para 1 subparas 3, 4 and 5 shall be allowed on the condition that the property is inherited by relatives of the direct descent, a spouse, brothers or sisters.

Art. 39. Whenever the deceased has inherited real property then 40 per cent of the taxable value shall be included in the total inherited property, if it has been acquired up to one year before his/her death; 50 per cent, if acquired up to two years before the his/her death or 60 per cent, if acquired up to three years before his/her death.

Art. 40. (1) The tax shall be paid within two months from delivering the Notice of Assessment, where the amount of tax has been determined.

(2) In cases of inheriting a sole proprietorship, equity interest in an limited liability company, [or] stocks and shares representing more than 50 per cent of the capital of a commercial partnership, the tax due may be paid within one year from the establishment of the inheritance [but] with the legal interest which shall be charged as of the expiry of the two month period under para 1.

Art. 41. (1) Amounts in bank accounts of deceased individuals shall be paid to their heirs after submission of a Verification from the tax office, stating that those have been reported in the inheritance tax return and the tax has been paid. In cases when the tax has not been paid it shall be deducted and transferred to the account of the respective tax office while the heirs shall be paid only amounts up to the means remaining in the account of the deceased.

(2) Para 1 shall not apply in cases of payment of proceeds on life insurance policies, signed by the deceased to the benefit of third parties.

(3) Transfer of registered shares and other securities, belonging to people who are deceased or declared missing, shall be done based on a Verification form issued by the tax office where the inherited property is located and established, in which form it is stated that the said securities have been included in the tax return and the inheritance tax due on them has been paid.

Art. 42. (1) The mayors of municipalities and regions shall send to the tax office a list of the people inhabiting in that location who have passed away during the preceding month no later than the 15^th day of the following month.

(2) In the list under para 1 they shall include the full name of the person, the date of his/her death, the Personal Identity Number, as well as data about his/her heirs: children, spouse, parents.

Art. 43. The banks, insurance companies and other commercial partnerships, as well as all other persons which are deposit-holders or have debts on securities, money or other property which may be part of an inheritance, which they know of that has been established, shall have the obligation to send a description of the property to the tax office where the inheritance is established prior to the payment, transfer or surrender [of the property].

Title Three

GIFTS AND PROPERTY TRANSFER TAX

Art. 44. (1) Tax shall be levied on property acquired as gift or real property acquired through purchase, as well as limited real rights on real property and on motor vehicles which have been purchased.

(2) Gifts tax shall be levied on any property acquired for no consideration, as well as on forgiven loans.

(3) Para 2 shall not apply if the transfer is subject to covering a liability as provided in a Law.

Art. 45. (1) The tax shall be paid by the successor in title to the property under Art. 44, and in cases of property exchange, by the person acquiring the more expensive possession, unless otherwise agreed. In cases when it has been agreed that both parties shall be liable for the tax they shall share the tax liability. Whenever the parties have agreed that the tax shall be paid by the one transferring the property, the other party shall be the warrantor.

(2) In cases when the successor in title to the property is abroad the taxpayer shall be the person transferring the property.

Art. 46. (1) The base for determining the tax shall be the value of the property in BGL at the moment of transfer.

(2) The property shall be valued as follows:

1) real property and limited real rights on such property - according to their market value or a value determined by a government or municipal authority while in cases when such value is lower than the tax value, according to the latter, complying with Attachment 2;

2) other property - under Art. 33 para 1 items 2, 3, 4 and 5.

Art. 47. (1) In cases of gifted property, as well as in cases of Art. 44 para 2 the tax shall be calculated, based on the value of the property transferred, to the amount of:

1) 0,5% for gifts between relatives of direct descent and between spouses;

2) 0,7% for gifts between brothers and sisters, and to nephews/nieces;

3) 5% for gifts between other persons, apart from those indicated in subparas 1 and 2.

(2) In cases of purchased property the tax shall be 2 per cent of the value of property transferred, while in property exchange [the tax shall be calculated] on the basis of the more expensive property.

(3) In cases of a partition, when the share of the property is increased, the tax shall be determined on the basis of the increased portion.

Art. 48. (1) Exempt from tax shall be:

1. property acquired by:

a) The state and the municipalities;

b) Bulgarian healthcare, edifying, cultural and scientific budget organisations, as well as social care centres;

c) The Bulgarian Red Cross;

d) The organisations of and for the handicapped, represented on a national scale;

e) Funds for supporting victims of natural calamities and for preservation and restoration of historical and cultural monuments;

2. Gifts for [medical] treatment of Bulgarian citizens, as well as technical means of assistance to the disabled;

3. Humanitarian aid to handicapped people of the first or second category of impairness, as well as socially disadvantaged citizens;

4. Gifts to legal entities which are non-profit organisations [received] in connection with their main activity;

5. Usual gifts;

6. Property transferred for no consideration in execution of an obligation, streaming from a law;

7. Gifts to the benefit of Public Reading Halls;

8. Property acquired in accordance with the provisions of the Law for Transformation and Privatisation of State and Municipal Enterprises;

9. In-kind contributions to the capital of a commercial partnership, co-operative or legal entity which is a non-profit organisation.

(2) Whenever property received under para 1 is transferred to third persons, the tax not collected shall become due, if evidence is provided to prove that the property transfer does not directly serve the purposes for which the respective organisation referred to in para 1 has been established, or which have been indicated as grounds for the exemption.

Art. 49. (1) The tax shall be paid in the tax office where [the property is] located before the property transfer, while in the remaining cases, in the tax office of the place of residence, or headquarters, as the case may be, of the taxpayer.

(2) In the cases of Art. 44 para 2 the persons acquiring property shall file a tax return for the purposes of taxation within one month from the acquisition.

Art. 50. Judges, notaries, regional governors, municipality mayors and other officials shall perform the transaction or action leading to the acquisition, granting, change or termination of real rights, after they have established that the tax due under this Chapter has been paid.

Art. 51. (1) Judges responsible for entries of real rights transferred, granted, altered or terminated shall inform the respective tax office within seven days, while the Ministry of Interior and the other competent authorities shall within seven days inform about motor vehicles registered, de-registered or stopped from motion.

(2) The terms under para 1 shall begin from the day following the entry [in the Court register] or the registration, de-registration or stopping from motion of a vehicle, as the case may be.

Section Four

TAX ON TRANSPORT VEHICLES

Art. 52. Tax for transport vehicles shall be levied on:

1. Transport vehicles, registered or subject to registration for use on public roads and highways in the Republic of Bulgaria;

2. Ships listed in the registers of the Bulgarian harbours;

3. Aircraft listed into the State Civil Aircraft Register of the Republic of Bulgaria when in possession of Bulgarian legal persons or individuals;

Art. 53. The tax shall be paid by the owners of transport vehicles.

Art. 54. (1) The owners of transport vehicles shall report the transport vehicles they own in the Tax Office where is their permanent place of residence or headquarters, as the case may be, within one month of the date of acquisition.

Art. 55. (1) For automobiles the tax shall be determined depending on the volume and power of the engine as indicated in the vehicle's registration:

up to 50 horsepower incl. - 100 BGL per hp;

up to 75 horsepower incl.- 200 BGL per hp;

up to 100 horsepower inlc.- 300 BGL per hp;

up to 150 horsepower incl. - 1000 BGL per hp;

more than 150 horsepower incl. - 2000 BGL per hp.

(2) For automobile trailers the following tax shall be paid:

trailers with carrying & loading capacity - 2000 BGL;

camping caravans - 5000 BGL.

(3) For motorcycles:

a) up to 125 cubic cm incl. - 2500 BGL;

b) up to 250 cubic cm incl. - 5000 BGL;

c) up to 350 cubic cm incl. - 7000 BGL;

d) up to 490 cubic cm incl. - 12 000 BGL;

e) up to 750 cubic cm incl. - 18 000 BGL;

f) above 750 cubic cm incl. - 22 500 BGL;

(4) For tricycles the tax shall be determined according to total weight:

a) up to 400 kg incl. - 2000 BGL;

b) more than 400 kg - 4000 BGL.

(5) For buses the tax shall be determined depending on the number of seats:

a) up to 22 seats incl. the seat of the driver - 50 000 BGL;

b) more than 22 seats incl. the seat of the driver - 100 000 BGL.

(6) For trucks and lorries, the tax shall be 5000 BGL for each commenced tonne of carrying & loading capacity.

(7) For trailers and semi-trailers the tax shall be 1 000 BGL for each commenced tonne of carrying & loading capacity.

(8) For traction engines, usual type or power tractors, the tax shall be 50 000 BGL.

(9) For specialised building-and-construction machinery (concrete carriers, concrete pumps, etc.), power cranes, specialised trailers for transportation of heavy or extra large loads, etc., the tax shall be 50 000 BGL.

(10) For power cranes with lifting capacity of more than 40 tonnes, specialised trailers for transport of heavy or extra large loads with lifting capacity of more than 40 tonnes the tax shall be 50 000 BGL.

(11) For tractors in cases when registered for use on public roads and highways the following tax shall be paid:

a) of horse power from 15 to 25 incl. - 5 000 BGL;

b) of horse power up to 50 incl. - 7 000 BGL;

c) of horse power above 50 - 10 000 BGL.

(12) For other self-propelled vehicles when registered and in motion, the tax shall be 25 000 BGL.

(13) For power sledges the tax shall be 50 000 BGL.

Art. 56. (1) For ships listed in the small craft registers in the Bulgarian harbours or listed in the municipality registers of ships used on inland rivers without outcome to the Black Sea or the Danube River, up to 40 gross tonnes weight, the tax shall be 500 BGL per gross tonne or part thereof.

(2) For ships listed in the large craft registers in the Bulgarian harbours a tax of 500 BGL per gross tonne shall be collected when up to 40 gross weight plus additional 50 BGL for each gross tonne above 40.

(2) For jets the tax shall be 50 000 BGL.

Art. 57. For civil aircraft, tax shall be paid as follows:

for aeroplanes in use and with a valid flight licence, as well as for ......... the tax shall be 200 BGL for each commenced tonne maximum weight at take-off;

para planes - 10 000 BGL;

delta planes - 10 000 BGL;

power-driven delta planes - 15 000 BGL;

free balloons - 25 000 BGL;

gliders - 25 000 BGL.

Art. 58. (1) Exempt from tax shall be the transport vehicles of:

government and municipal bodies and budget organisations which do not perform business activity;

diplomatic representatives and consular's at the conditions of reciprocity;

the Bulgarian Red Cross when used for the purposes of the organisation;

automobiles of handicapped people in the registration license of whom there is a note "disabled";

(2) For transport vehicles which will not be used, the tax shall not be collected provided that the owner has submitted the registration license of the vehicle [in the Road Traffic Control Office] before the end of the preceding year.

(3) In cases of transfer of ownership over a transport vehicle the new owner shall not pay the tax, if the previous owner has already paid it for the period until the end of the calendar year.

Art. 59. (1) For transport vehicles of power of the engine up to 100 horsepower incl. which are equipped with catalyzers the tax due shall be collected with 50 per cent reduction.

(2) For buses and trucks with eco-engines, meeting the Euro1 and Euro2 Standards, the tax due under Art. 55 paras 5, 6 and 8 shall be collected with 50 per cent reduction.

(3) For buses used for public transport of passengers on regular routes within the cities and in high mountainous areas, rarely populated and border regions, the tax shall be 10 per cent of the amount determined under Art. 55 para 5, on the condition that [the buses] shall not be used for other purposes.

Art. 60. (1) The tax shall be payable in two equal instalments in the following deadlines: no later than March 31 and no later than September 30 of the year for which it refers. To those paying up the full amount of the tax within the first deadline a 5 per cent discount shall be made.

(2) For transport vehicles acquired during the current year, the tax shall be paid within a month to the amount of 1/12 of the annual tax for each month following the acquisition of the vehicle by the end of the year, including the month of acquisition.

(3) Whenever a vehicle which has been stopped is put back into motion the tax shall be paid under para 2.

(4) For acquired non-functioning transport vehicles the tax shall be paid following the procedures and within the deadlines under para 2 from the moment when they are set back in motion.

(5) For destroyed motor vehicles the tax paid shall not be refunded.

(6) Payment of the tax shall be a precondition for setting [vehicles] in motion and for performing regular annual technical tests of the vehicle.

Art. 61. The tax shall be paid to the budget of the municipality where the vehicle is registered.

Chapter Three

LOCAL TAXES

Title One

GARBAGE FEE

Art. 62. The fee shall be paid for the collection, transport and rendering harmless of garbage in depots or other facilities, as well as for maintaining clean the publicly used terrains in the inhabited locations.

Art. 63. (1) For property located away from regions where garbage disposal is organised, a fee shall be collected for use of garbage depots and for maintaining clean the publicly used terrains.

(2) The fee under para 1 shall be determined following a Municipal Council Decision in percentage of the fee under Art. 66, depending on the quantity of garbage and the expenses for maintaining the garbage depots.

Art. 64. (1) The fee shall be paid by the taxpayers under Art. 11 simultaneously with the payment of the property tax.

(2) For municipal property used or rented by other parties, the fee shall be paid by the user or inhabitant, as the case may be.

Art. 65. (1) In cases when the fee is determined depending on the quantity of garbage the persons under Art. 64 shall file a tax return in the Tax Office of where the property is located, no later than October 30 of the preceding year. For property acquired in the course of the year the return shall be filed within 30 days of the date of acquisition.

(2) The type and number of the garbage containers to be used during the year shall be reported in the tax return, with respect to the frequency of disposal of the garbage, announced in advance by the municipality.

(3) In cases when the company has failed to file the return on time, or has reported a lower number of the respective type of garbage containers, or does not throw its garbage in the appropriate containers, it shall pay the annual fee based on the tax value under Art. 20 and 21. From the annual amount due the prepaid portion shall be deducted and interest shall be charged on the difference in accordance with the payment deadlines.

Art. 66. (1) The fee shall be determined as an annual payment for each inhabited location through a Municipal Council Decision, based on approved needs assessment, including the necessary expenses for:

1. ensuring containers for keeping the garbage: garbage bins, containers, etc.;

2. collection of garbage and its transport to depots or to other installations and facilities for rendering it harmless;

3. building, maintenance, operation and closure of garbage depots or of other installations and facilities for rendering it harmless and innocuous;

4. cleaning up streets, squares, alleys, parks and other terrains within inhabited locations, which are designed for public use.

(2) The fee shall be collected by the tax administration.

Art. 67. The amount of the fee shall be determined as follows:

For residential property and country residences [or estates] which are owned by citizens, as well as residential property of enterprises - proportionally on the basis of the tax value, according to Attachment 1 or in BGL depending on the quantity of garbage;

For non-residential property - in BGL, depending on the number and type of garbage containers. In cases when the type and number of containers used for each property cannot be established, the fee shall be determined proportionally, based on the tax value.

Art. 68. (1) In cases when during the course of the year the Municipal Council alters the amount of the fee for reasons of considerable change in the volume of expenses for performing the activities under Art. 66, the new amount of the fee shall be collected from the beginning of the quarter following the Municipal Council's Decision.

(2) The increased amount of the fee determined under para 1, shall not be collected by persons who have pre-paid it for the relevant period.

Art. 69. (1) The fee shall be paid in four equal instalments within the following deadlines: no later than March 31, June 30, September 30 and November 30 of the year for which it refers.

(2) To those who have prepaid the fee for the whole year within the first deadline a 5 per cent discount shall be made.

Art. 70. (1) For newly acquired real property the fee shall be collected from the beginning of the month following.

(2) In cases when occupation is taken before the final completion of a building, the fee shall be due from the beginning of the month following the month when occupation has been taken.

(3) For buildings which are subject to destruction the fee shall be collected including for the month in which occupation has been terminated.

Art. 71. The fee under Art. 62 shall not be collected for:

real property where services are not provided and for this purpose the municipality shall advise the Tax Office. The borders of the regions where garbage disposal is organised shall be determined by means of a Municipality Mayor's Order and shall be publicly announced before the end of the preceding year.

real property which shall not be used during the whole year and by end of the preceding year a tax return is filed to that effect by the owner or user in the Tax Office where the property is located.

Title Two

FEES FOR [licensing trade on] MARKET PLACES, AUCTION PLACES, SIDEWALKS, SQUARES, STREETS, FAIRS AND TERRAINS FOR OTHER PURPOSES

Art. 72. The fee shall be paid for use of sidewalks, squares, streets, places where markets are organised (both open and covered), auction places, fairs and terrains for other purposes, which are municipal property.

Art. 73. (1) The fee shall be paid by individuals and legal persons depending on the zone in which the terrains listed in Art. 72 are located.

(2) The zones under para 1 shall be determined by the Municipal Council.

Art. 74. (1) For use of markets for purposes of trading with agricultural produce the fee shall be determined as follows:

per sq. meter:

a) daily - from 200 to 900 BGL;

b) monthly - from 3000 to 15 000 BGL.

for sales from a wagon per day - from 600 to 3 000 BGL;

for sales from a motor car per day - from 1 200 to 5 000 BGL;

for sales from a truck or trailer per day - from 3 000 to 12 000 BGL.

(2) For use for purposes of trading with industrial goods the fee shall be collected of an increased amount - from 2 to 5 times higher than the amount of the fee under para 1 subpara 1.

Art. 75. For use of sidewalks, squares, streets or other terrains for performance of commercial activity in the open, as well as for placing stalls, chairs, shopwindows, kiosks, a fee shall be collected per sq. meter daily to the amount 200 - 800 BGL.

Art. 76. For use of places where fairs and public celebrations take place, the fee for sales of goods shall be collected per sq. meter daily to the amount 300 - 1 500 BGL.

Art. 77. For use of places where panoramas, shooting galleries, power-activated seesaws and others are installed, a fee shall be collected per sq. meter daily to the amount 100 - 300 BGL.

Art. 78. For use of sidewalks, squares, streets and other municipal terrains for placement of construction materials, a monthly (or for part of the month) fee shall be collected per sq. meter:

in cities with population of more than 100,000 citizens:

a) first zone - from 400 to 900 BGL;

b) second zone - from 350 to 800 BGL

in cities with population of less than 100,000 citizens:

a) first zone - from 350 to 800 BGL;

b) second zone - from 250 to 600 BGL;

c) in villages - from 200 to 500 BGL.

Art. 79. (1) The fees shall be collected when the permission for use is issued for the period indicated in it.

(2) In cases of use of the particular place for more than one month, the fee shall be paid on a monthly basis.

(3) The fees under this Title shall be paid in the determined amounts, regardless of how long during the day or during the month, as the case may be, is the place used.

Art. 80. The municipal authority issuing the permission for use may revoke the permit in cases when it is not used for the said purpose, or when the person to whom it was issued does not use it personally, or whenever public needs should require.

Title Three

FEES FOR KINDERGARTENS, DAY SCHOOLS, VACATION CENTRES, SOCIAL CARE CENTRES AND OTHER FORMS OF SOCIAL SERVICE

Art. 81. (1) For use of kindergartens, day schools and physiological wards in Mother and Child social care centres, the following fees in percentage of the monthly wage for the country shall be collected on a monthly basis by the parents or guardians:

weekly - 20 - 60 per cent;

all-day-long - 10 - 40 per cent;

half-day-long - 5 - 20 per cent.

(2) The fees shall be determined within the indicated range according to the income per member of the family.

Art. 82. (1) The fee shall not be collected for:

children whose parents fall within the 1^st and 2^nd category of impairness, children whose parents are unknown, children whose parents have fallen victims of production accidents or national calamities, children whose parents have lost their lives in discharge of official duty;

children with heavy chronic diseases, indicated in a list approved by the Minister of Healthcare, who have been accommodated in asylums or undergoing group treatment.

the third and each following child in families of many children. The parents shall pay half the amount of the fee for the first child and a quarter of the amount of the fee for the second child.

(2) In cases of non-attendance of the children the fee shall not be collected, provided that the parents have informed the Director of the children's institution in advance.

Art. 83. (1) The fee shall be paid with a 50 per cent reduction for orphans or children with only one parent, or children whose parents are regular students or whose parents undergo their regular military service.

(2) In cases when two children of the same family are accepted in the same or different children's institutions, the fee for the second child shall be collected with a 50 per cent reduction.

Art. 84. (1) A fee shall be collected per day for the usage of school children vacation centres to the amount of 2 - 4 per cent of the minimum monthly wage for the country.

(2) The reliefs envisaged in Art. 83 shall be applied also for the determining the fees for use of school children vacation centres.

(3) The fee under para 1 shall not be collected for children falling under Art. 82 para 1 subparas 1 and 2.

Art. 85. (1) School children using hostels shall pay a monthly fee to the amount of 10 to 25 per cent of the minimum monthly wage for the country.

(2) The fee under para 1 shall not be collected for children falling under Art. 82 para 1 subparas 1 and 2.

Art. 86. (1) The individuals taking advantage of social care homes or other forms of social care shall pay a monthly fee to the amount corresponding to the real sustaining per person.

(2) A real sustaining of a person shall include the monthly expenses for food, accommodation and clothing, detergents and sanitary materials, transport expenses for provision of food, as well as the corresponding part of the common expenses for heating and electricity, water supply, drainage and garbage disposal, with the exception of the allowances especially provided for electricity, fuels and water supply for household purposes, washing and clothing, which are allocated to social care institutions by governmental and non-governmental organisations, or by individuals and legal persons.

Art. 87. (1) The fee due shall be withheld from the personal income of the individual.

(2) For individuals to whom service is provided through the social care system, an amount for personal expenses shall be left [at their disposal] no less than:

20 per cent of their personal income for those accommodated in homes for mentally disordered or with psychic diseases;

30 per cent of the personal income of those accommodated in old people's homes, institutions for people with physical disabilities and damaged sensitivity;

40 per cent of the personal expenses of those accepting other forms of social care service at home or in daily care homes;

50 per cent of the personal expenses of those above 18 years of age, accepted for education in professional training centres, and of children above 16 years of age accommodated in children's institutions.

(3) In cases when the remaining part of the personal income is not sufficient to cover the fee, the difference shall be covered by the municipal budget where the social care centre or other form of social service is operating.

(4) For individuals paying child support of minor children, the amount for personal expenses and the means for paying the real amount of the support shall be determined after the deducting the allocated child support.

(5) The fee shall not be collected from individuals deprived of personal income or savings.

Art. 88. (1) The fee shall not be collected for children under 16 years of age, accommodated in social care institutions or day-care social centres, as well as for children under 18 years of age studying in professional training centres.

(2) The fee shall not be collected from individuals accommodated temporarily in distribution centres or asylums within the social care system.

(3) The fee shall not be collected for children facing health and social problems, while accommodated in settlements for short-term recovery vacation.

Art. 89. For orphans and semi-orphans below 18 years of age without personal income, accepted to study in social professional training centres, means for personal expenses shall be provided to the amount of 50 per cent of the base minimum income.

Art. 90. Individuals accommodated in private boarding-houses or social care centres shall pay the amounts negotiated.

Art. 91. A fee per day shall be collected for accommodation in sobering houses or institutions to the amount of 5 to 10 per cent of the minimum monthly wage for the country.

Art. 92. The fees under this Chapter shall be charged and collected by the officials in the respective institutions no later than the 10^th day of the month for which they are due.

Title Four

RESORT FEE

Art. 93. The fee shall be paid for use of a resort.

Art. 94. The fee shall be paid by the individuals staying in the resorts for purposes of holidays or medical treatment simultaneously with their [temporary] address registration.

Art. 95. (1) The fee shall not be collected by individuals travelling on a business trip, for children under 8 years of age, school children under 18 years of age, regular students or retired people.

(2) For individuals travelling on a business trip, regular students and retired people it shall be written down the data verifying their quality as such travelling on business, students or pensioners.

Art. 96. The resort fee shall be determined as follows:

for resorts of national importance - 300 - 1500 BGL per person, per day;

for resorts of local importance - 100 - 300 BGL per person, per day.

Art. 97. (1) The fee shall be collected by the individuals and legal persons providing accommodation.

(2) The fee shall be paid by means of fiscal stamps in cases when:

address registration is not performed by filling in an address card;

individuals are not subject to address registration.

Title Five

FEES FOR EXTRACTION OF AGGREGATES

Art. 98. The fees shall be paid for extraction of aggregates, including such extracted from the bottom of water reservoirs.

Art. 99. (1) The fees shall be paid by individuals or legal persons extracting aggregates.

(2) The persons to whom a concession has been granted, including extraction of aggregates from the respective pit, shall not be liable for the fees under this Title.

Art. 100. The fees shall be determined separately, for each the type of aggregate, based on the gross volume extracted, established in accordance with:

the registers of production which are mandatory to keep for each pit;

the quantity specified in the temporary or one-time given permits for extraction of aggregates.

Art. 101. The amount of the fees shall be determined as follows:

for riverside and aggregated sands, gravel and coarse rubble - from 50 to 150 BGL/cubic meter;

for quartz sands used in the glass industry and sand used for cleaning metal objects - from 150 to 400 BGL per tonne;

for sand-and-clay materials used for production of bricks, tiles and cover, mortars, plasters and renders - from 30 to 120 BGL per 1 cubic metre;

for clay to be used for:

a) earthenware, argillaceous soil and fuller's earth - from 100 to 300 BGL per 1 cubic metre;

b) stoneware and ceramics - firm 150 to 400 BGL per 1 cubic metre;

for moulding soil - from 50 to 200 BGL per 100 cubic metre;

for stone of sedimentary, eruptive, fine aggregate and other rocks from 50 to 150 BGL per 1 cubic metre;

for common stones of limestone, marbles, conglomerates, etc. for mortars and renders - from 100 to 300 BGL per 1 cubic metre;

for limestone, malms and calcites for producing lime - from 40 to 120 BGL per 1 cubic metre;

for limestone, malms, clay and sand materials for producing cement - from 50 to 150 BGL per 1 cubic metre;

for stones used for the production of:

a) paving blocks - from 80 to 240 BGL per 1 cubic metre;

b) steam-rollers, mill stones, grindstones - from 300 to 900 BGL per 1 cubic metre;

c) plinths and footings, drip-stones, steps, etc. made of fine aggregates, malms, marbles and of sedimentary rocks - from 100 to 300 BGL per 1 cubic metre;

d) plinths and footings, drip-stones, steps, etc. made of granites, syenites, basalt, diorites, riolites, etc. hard eruptives - from 150 to 450 BGL per 1 cubic metre;

e) slabstones for sidewalks and roof slabs - from 50 to 150 per square metre.

Art. 102. The fees shall be paid:

on a monthly basis - in cases of Art. 100 subpara 1;

before the extraction of the aggregates - in cases of Art. 100 subpara 2.

Art. 103. The fees shall be paid to the local budget of the municipality where the aggregates are extracted.

Section Six

FEES FOR TECHNICAL SERVICES

Art. 104. The fees shall be paid for technical services provided by the municipality, covering the activities relating to regional regulation and set-up, architecture, construction, infrastructure, cadastres of inhabited and uninhabited locations.

Art. 105. The fees for technical services shall be paid by individuals and legal persons, [who are] using those services at the time of posing their request.

Art. 106. The state and municipal bodies, budget organisations and the Bulgarian Red Cross shall be exempt from payment of fees for technical services.

Art. 107. The amount of the fee for technical services shall be determined as follows:

For issuing a layout of a real property - from 2000 to 5000 BGL;

For issuing a layout of a real property with pre-regulated infrastructure - from 5000 to 10 000 BGL;

For verification of schemes from issuing of which a six month period has elapsed - from 500 to 2000 BGL;

For determining the construction line and level of construction:

a) of buildings, per square metre - from 20 to 50 BGL;

b) of fences, per linear metre - from 20 to 50 BGL;

For issuing verifications of facts and circumstances on the regional regulations and inhabited locations' regulation - from 1000 to 2000 BGL;

For verification of copies of documents and copies of regulation plans and/or relevant documents - from 1000 to 5000 BGL.

Art. 108. A fee for technical services shall not be paid for:

Additions to (amendments in) an approved cadastral plan;

Letter to Court demanding issuing of a writ of execution for collecting receivables appearing from an effective value;

Proving construction sites inadequate for use, jeopardised by self-ruin or harmful with respect to hygiene and sanitation in cases when a specialised committee so establishes;

Expropriation of real property for construction purposes and compensating those entitled;

Amendment and repeal of an existing Order for Expropriation and Compensation, as well as for a new appraisal of expropriated real property;

Determining the compensations for sellable property which is part of a land plot, according to the regulation plan, as well as [compensations for] public use utilities;

Providing oral consultations on the cadastral, regulation and urban planning condition of real property;

Providing preliminary information on issues related to technical services.

Art. 109. (1) The deadlines for providing technical services which are not determined in a legislative act, shall be determined by means of a Municipal Council decision, but may not exceed one month.

(2) In cases of nnon-compliance with the deadline under para 1 the amount of the fee shall be reduced by 1 per cent per day, considered as of the first day of delay, but [the reduction] may not exceed 30 per cent of the total amount of the fee.

Section Seven

FEES FOR ADMINISTRATIVE SERVICES

Art. 110. (1) For services provided with respect to the social status of the citizens the following fees shall be collected:

For issuing of certificatory letter for heirs - 800 BGL;

For issuing of certificatory letter for identity of names - 500 BGL;

For issuing of certificatory letter to evidence the non-issuing of a birth or death certificate - 500 BGL;

For issuing of duplicates of birth certificates, marriage certificates and reissuing of an extract copy of a death certificate - 800 BGL;

For issuing of a letter certifying a Bulgarian citizenship - 1000 BGL;

For issuing of certificatory letter of the marital status - 800 BGL;

For issuing of a letter certifying family connections - 1000 BGL;

Drafting the papers for acquisition of right of residence - 600 BGL;

Verification of an Invitation form for visits of foreigners in the Republic of Bulgaria - 5000 BGL;

Verification of an Invitation form for private visits in the Republic of Bulgaria by persons residing abroad, one of the parents of whom is of Bulgarian nationality - 800 BGL;

Legalisation of marital status documents for travelling abroad - 1500 BGL;

All other types of certificatory letters demanded by citizens - 500 BGL;

Copies of documents per page - 400 BGL.

(2) No fee shall be collected for the following services:

Issuing a birth certificate;

Issuing a marriage certificate;

Issuing a death certificate and providing an extract copy of it;

Notes, additions to and amendments in the documents certifying the social status of the citizens;

Constituting guardianship and appointing guardians;

Maintaining the register of the population;

Reflecting any changes in names in the registers of social status and of the population;

Issuing a certificatory letter for a hereditary pension.

Art. 111. For effective procedures for introducing people to rent municipal property a fee shall be paid as follows:

For residential property - 700 BGL;

For non-residential property - 3000 BGL.

Art. 112. For issuing a certificate of ownership on cattle for purposes of selling the cattle a fee shall be paid to the amount of 2000 - 3000 BGL.

Art. 113. For issuing permits (licences), annual fees shall be collected as follows:

Permissions for sales of tobacco products under Art. 30 para 1 of the Tobacco and Tobacco Products Act - from 2000 to 3000 BGL;

Permission for storage and retail sales of wine, alcohol and spirits:

a) for premises used for wholesale trade and the related [activities of] storage and keeping of wines, alcohol and spirits, [including] the whole surface area of the premises, regardless of what part of it is used for storage of other goods - from 300 to 350 BGL/sq.m.

b) for retail sales of wines, alcohol and spirits in the cities with population of more than 35,000, national resorts, airports, harbours and motels - from 50,000 to 100,000 BGL;

c) for commercial premises in the other cities - from 10,000 to 15,000 BGL;

d) for commercial premises in the rural locations - from 5,000 to 10,000 BGL;

e) for sales of wine and spirits in public places, depending on their category:

5 stars - from 180,000 to 200,000 BGL;

4 stars - from 130,000 to 150,000 BGL;

3 stars - from 65,000 to 80,000 BGL;

2 and 1 stars - from 30,000 to 40,000 BGL;

no category public places - from 15,000 to 20,000 BGL;

f) for temporary stalls for sales of wine and spirits during the time of fairs, public gatherings, advertisement campaigns of companies and similar, per day - 3000 BGL;

g) for issuing of other types of permits - from 2000 to 10,000 BGL.

Art. 114. The fees shall be paid by the individuals at the time of posing the request.

Art. 115. The state-owned and municipal organizations which are budget organisations shall be exempt from paying fees, with the exception of the fees under Art. 113.

Section Eight

DOG FEE

Art. 116. For registration of dogs in the cities, the owners shall pay an annual fee to the amount from 5,000 to 10,000 BGL.

Art. 117. Exempt from the fee shall be:

1. Dogs belonging to blind citizens;

2. Dogs belonging to lonely citizens of above 60 years of age;

3. Dogs used for guarding agricultural buildings and herds;

4. Specially trained dogs used in the system of the Ministry of Defence, Ministry of Internal Affairs and other budget organizations;

5. Dogs used for scientific research and for medical purposes;

6. Dogs used by the Escort-and-Rescue services in mountain areas.

Art. 118. Within three months from the acquisition of the dog the owner shall file a declaration in the municipality of permanent residence or headquarters, as the case may be.

Art. 119. (1) The fee hall be paid no later than March 31 of the year for which it refers or together with filing the declaration in the cases when the dog is acquired after this date.

(2) For dogs acquired during the current year, the fee shall be due for each month until the end of the year, including the month of acquisition, where the amount shall be one twelfth of the annual amount.

Section Nine

FEES FOR [USE OF] GRAVE PLOTS

Art. 120. (1) For use of grave plots for more than eight years, fees are collected as follows:

Up to 15 years: 1^st zone - from 10,000 to 20,000 BGL; 2^nd zone - from 8,000 to 18,000 BGL; 3^rd zone - from 5,000 to 10,000 BGL;

Eternally - the fees under subpara 1, increased five times;

For usage of family grave plots:

a) for 10 years and for each following 10-year period: 1^st zone - from 20,000 to 30,000 BGL; 2^nd zone - from 15,000 to 25,000 BGL; 3^rd zone - from 12,000 to 20,000 BGL;

b) eternally - the fees under "a", increased five three times.

For added regulated undersize grave plots - the corresponding part of the fee determined for the grave plot.

(2) For urns fees shall be collected under para1 subparas 1 and 2, reduced by 50 per cent.

Art. 121. The fees shall be collected by the respective municipal service, managing the graveparks.

Section Ten

FEE FOR SECURITY AND SAFEGUARD OF AGRICULTURE PROPERTY

Art. 122. (1) For providing security and safeguard of agriculture property the owners or users, as the case may be, shall pay an annual fee.

(2) The fee shall be determined per decar of farming land, by type of crops, as follows:

for cereals - from 300 to 600 BGL per decar;

for technical crops - from 400 to 700 BGL per decar;

for vegetables, orchards and vineyards - from 500 to 1000 BGL per decar.

(3) The fee shall be paid in two equal instalments: by March 1 and November 1 of the year for which it refers.

Chapter Four

ADMINISTRATIVE AND PENAL PROVISIONS

Art. 123. (1) Individuals not filing a tax return under Art. 14 or Art. 26, failing to meet filing deadlines, as well as incorrectly reporting data or circumstances, leading to determining a smaller amount of the tax or to exemption from the tax, shall be penalised from 10,000 to 400,000 BGL, while legal persons shall be imposed a property sanction to the amount from 100,000 to 1,000,000 BGL, if no heavier punishment envisaged.

(2) Managers or accountants of companies not filing a tax return under Art. 17 or Art. 65, failing to meet filing deadlines, as well as incorrectly reporting data, leading to determining a smaller amount of the tax or fee, shall be penalised from 20,000 to 200,000 BGL.

Art. 124. (1) Heirs by will or law, or their legal representatives, who fail to file an inheritance return under Art. 32, fail to meet filing deadlines or report incorrect data about the inherited property, shall be penalised from 50,000 to 500,000 BGL.

(2) The penalty under para 1 shall not be imposed in cases when no inheritance tax is due.

(3) For an offence under Art. 41 the delinquents shall be penalised from 20,000 to 200,000 BGL.

Art. 125. In cases of not reporting part of the value or when receiving property as gift or when purchasing real property, the parties shall be penalised up to the doubled amount of tax due on the part unreported.

Art. 126. In cases of non-filing a return under Art. 118 a penalty or property sanction, as the case may be, shall be imposed to the amount from 5000 to 20,000 BGL.

Art. 127. In cases of non-compliance with the provisions of this Law, save cases under Art. 13, 124, 125 and 126, the delinquents shall be penalised from 10,000 to 100,000 BGL, while legal persons shall be imposed property sanctions to the amount from 50,000 to 300,000 BGL.

Art. 128. (1) Violation Acts shall be composed by the tax authorities at the Tax Offices, while Penal Acts shall be issued by the Head of the General Tax Administration Directorate or by his designees, with the exception of delinquencies under Art. 126 where the Penal Acts shall be issued by the Mayor of the municipality on the basis of Acts composed by his designees.

(2) Establishing violations, issuing of Penal Acts, as well as their appeal and execution shall be done following the procedures of the Administrative and Penal Provisions Act.

ADDITIONAL PROVISIONS

§1. In the sense of this Law:

Enterprise shall be a legal person, sole proprietor or other person who has an obligation to keep books.

Main residence shall be the property used for accommodating a citizen and his family during the major part of the year.

Family shall be the spouses and their under-aged children who are not married.

Agricultural producers shall be individuals or legal entities producing agricultural production to be realised on the market. This is established either through the tax return or through the accounting or statistical documentation.

Market value shall be the price, without taxes and fees charged, which would have been paid for similar property or possession at the same conditions between persons who are not related. No rebate or reduction shall be included in the market price.

Related persons shall be persons under §4 of the Additional Provisions of the Value Added Tax Law.

Garbage shall be scraps of food and refuse from cleaning up the houses and the working premises with the exception of building and construction waste, explosives, flammable materials, toxic, contagious and other harmful waste materials, large size household waste as well as other refuse in the cases when their quantity or content does not allow arm s length treatment with the common garbage.

Large size garbage shall be garbage which cannot be placed in the garbage containers because of their size or weight or in the cases when those create difficulties for disposal.

Garbage containers shall be containers, bins, waste bins set in public places in which garbage is thrown, as well as the large plastic bags for the distributive gathering of the garbage.

Regular routes of buses shall be transport carried out following a pre-determined route and table.

Personal income shall be all income of the individuals with the exception of:

a) the allowance granted in addition to the pensions of handicapped people of the first category of impairment, entitled to an escort;

b) the amounts received as remuneration by individuals, accommodated in social care homes, during a therapeutic process including personal performance;

c) the allowances determined by a Council of Ministers Decree;

d) gifts for humanitarian purposes made by persons taking advantage of social care institutions and social care services.

TRANSITIONAL AND CONCLUDING PROVISIONS

§2. (1) Taxpayers under Art. 11 shall file a tax return for each real property they own in the tax office of location of the property by May 31, 1998.

(2) Citizens who have no place of residence on the territory of the Republic of Bulgaria shall file a return in the Sofia-City Tax Office.

(3) Citizens who have filed a return by March 31, 1998 shall be entitled to a 5 per cent reduction from the full amount of the property tax for 1998.

§3. (1) Citizens shall be liable for the property tax and garbage fee for 1998 as follows: 50 per cent by June 30^th, 25 per cent by September 30^th, and 25 per cent by November 30^th.

(2) Citizens who have paid the full amount of the property tax and garbage fee due for 1998 shall be entitled to a 5 per cent reduction.

(3) The additional tax for 1998 shall be paid by November 30^th 1998.

§4. This Law shall also apply, if more favourable, with respect to inheritance established before its enforcement, for which a tax return have been filed within the deadlines under Art. 32, but have not been taxed with inheritance tax.

§5. In the Inheritance Law (State Gazette, 1949, amend. SG 41/49, 275/1950, 41/1985, 60/1992, 21/1996, Decision No 4 of the Constitutional Court from 1996, SG 104/1996) a new article 10a is introduced:

"Art. 10a. In cases when several individuals have died and the sequence of the deaths cannot be established, it shall be considered that the older of them has died before the younger."

§6. In the Law for Residence Construction Co-operatives (Promulg. SG 55/1978, amend. SG 102/1981, 45/1984, 75/1988, 46/1989, 21/1990, 60/1992 and 104/1996) §4 of the Additional Provisions shall be repealed.

§7. In the Cultural Monuments Law (Promulg. SG 29/1969, amend. SG 29/1973, 36/1979, 87/1980, 102/1981, 45/1984, 45/1989, 10 and 14/1990, 112/1995, 31/1996 - Decision of the Constitutional Court from 1996, amend. SG 44/1996) the following amendments shall be introduced:

1. The last sentence of Art. 25 shall be deleted.

2. The words "and local" in the first and second sentence of Art. 29 para 1 shall be deleted.

§8. In the State Property Law (Promulg. SG 44/1996, amend. SG 104/1996, 55 and 61/1997) articles 10 and 11 shall be repealed.

§9. In the Law for the Notaries (Promulg. SG 104/1996) Art. 96 para 3 shall be repealed.

§10. In Art. 15 of the Tax Procedures Law (Promulg. SG 61/1993, amend. SG 20/1996 and 51/1997) a new para 5 shall be introduced:

"(5) In determining the tax liabilities the tax base shall be rounded off to full 100 BGL to the smaller number in cases when the last two numbers are less than 50, and to the bigger number in cases when the last two numbers are above 50. The amount of the tax shall be rounded off to full 10 BGL to the smaller number in cases when the last figure is less than 5, and to the bigger number in cases when the last figure is more than 5.

§11. The Ministry of Internal Affairs, at the time of issuing a registration licence for motor vehicles, shall write down in it also the power of the engine in horsepower.

§12. This Law shall become effective as of January 1, 1998 and shall repeal the Local Taxes and Fees Law (Promulg. SG 104/1951, amend. SG 10/1952, 12 and 104/1954, 91/1957, 13/1958, 57 and 89/1959, 21 and 91/1960, 85/1963, 1 and 52/1965, 53/1973, 87/1974, 21/1975, 102/1977, 88/1978, 36/1979, 99/1981, 55/1984, 73/1987, 33 and 97/1988, 21 and 30/1990, 82/1991, 59/1993, 40 and 87/1995, 14/1996 - Decision No 3 of the Constitutional Court from 1996, SG 20/1996, 58/1996 - Decision No 9 of the Constitutional Court from 1996, amend. SG 89 and 93/1996 and 55/1997).

This Law was adopted by the 38th National Assembly on 27 November 1997 and the state seal was affixed to it.