How come income tax is so low in Bulgaria? Where do funds come from for public and social infrastructure? I pay 38% income tax in Australia, and even so nothing’s is free (education and health care is very expensive here)
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Posted by al0678
8 Comments
VAT + social security and added tax on things like tobacco.
Australia is a first world country, and massive exporter of raw and produced goods.
Bulgaria is a brealy emerging market being completely cucked by the Eurozone.
Who said anything about public or social infrastructure… what’s that anyway
You are always welcome
Up to 19000 euro a year your income tax is lower than in Bulgaria. Everyone here pays 10% even if his income is less than 6000 a year. There are also other taxes, not just income tax. You have separate healthcare tax and social security tax. Overall tax burden is not that different.
Austria/Australia again. Not that different – anyone in Australia that earns 40000AUD or less is paying the same or less income tax than people in Bulgaria.
You use the money in Austria. Vienna is the best city to live IN THE WORLD for the past 3-4 years.
We’d be lucky if the government spends something on cities outside of Sofia, Plovdiv and Varna.
Also something like 30% of out economy is in the gray sector, so increasing the tax would just drive this even further. Another reason is that we’re trying to get people to invest in Bulgaria with a lower tax rate.
The tax income for 2024 is budgeted to be 43 billion leva with 18 billion coming in from VAT, 7 billion coming from personal taxes and 6 billion from corporate taxes. The rest is 6.5 from duties and about 5 from “others”.
Pretty much everyone thinks that if taxes are raised – they’ll just be stoled from the politicians, so it’d be a tough thing to get through.
You don’t pay 38% income tax in Austria.
Oh, Australia. Sorry. 😀 Many if not most countries have something like a non-taxable level. In Bulgaria there is no such thing. You earn 20 dollars worth a year? You pay 2.
Part of the reason why there is a 10% tax is this: the same 10% is taxed EVERYTHING ELSE, so there is no tax machinations necessary. (you know the situatuions wehere you would decrlare company income as personal and vice versa to get into a lwer tax bracket… no such thing, you just pay 10% on anything and everything.
And yes, Bulgaria is one of the countries with least development, because of the past and because its incomes are still low. They are 10-20-40 years behind many other countries in the EU.
20% VAT and property taxes
also you get taxed regardless of how much you make
in australia your first 18k arent taxed at all
in bulgaria the average salary leads to about 20k AUD so if we had the same taxation as Australia half the people wont be paying any taxes
in fact, 99% of bulgarians are making below the 45k AUD tax rate.
so to answer your quesion. Bulgaria makes money by screwing over the poor