What are the Business Trip Per Diems in Bulgaria?

TABLE OF CONTENTS

• Required Documentation
• Per Diem Allowance
  • Tax Implications
  • Advance Payment and Reporting
  • Summary Checklist
    
    
    

Business trips in Bulgaria are regulated by the Ordinances on Business Trips in the Country and Abroad. Below is an overview of the key requirements and allowances for domestic business trips.

Required Documentation

To receive a business trip allowance, employees must provide:

1. Business Trip Order (BTO)

   • This is the official document authorizing the trip.
   • It must be prepared in advance and include details such as destination, purpose, and duration.

2. Written Report (if required by the BTO)

   • A summary of activities performed during the trip.

3. Expense Documentation

   • Accommodation: Invoice or receipt for lodging.
   • Travel: Ticket or other proof of transportation costs. For air travel, boarding passes or flight protocols are required.
   • Daily Allowance: Included in the BTO and expense report.
   • If an advance payment was provided, an advance report must be submitted detailing how the funds were spent.
     
4. Important: All documented expenses that are work-related are non-taxable and recognized for tax purposes.

Per Diem Allowance

According to Art. 19, para. 1 of the Ordinance on Business Trips in the Country:

• Standard daily allowance: 40 BGN per day when the trip includes an overnight stay.
• Maximum allowable amount: Up to 200% of the standard rate (i.e., 80 BGN per day) as per Art. 21, para. 1.

Tax Implications

• Daily allowances up to 200% of the statutory amount are non-taxable under Art. 24, para. 2, item 5b of the Personal Income Tax Act.
• Any amount above this limit is considered taxable income for the employee.
• Undocumented or non-business-related expenses must also be added to the employee’s taxable income.

Advance Payment and Reporting

• If an advance is given, the employee must submit an advance report after the trip.
• The report should clearly describe the business transaction and include all supporting documents.

Summary Checklist

✔ Prepare a Business Trip Order before departure.
✔ Collect and submit all receipts and travel documents.
✔ Ensure daily allowances do not exceed 200% of the statutory amount.
✔ Submit an advance report if funds were provided upfront.