Draft Amendments Envisage Two-year Social Security Exemption for Big Investors
Draft amendments to the Investment Promotion Act envisage that investors who open new well-paid jobs and pledge not to lay off workers in the next five years will be exempt from of social contributions for two years.
Under the amendments, local or foreign investors in manufacturing or services who decide to expand their business in Bulgaria or set up a new business, investing between 2.0 and 20 million levs, depending on the type of their business and its location, will get back the full amount of social contributions they paid over the past two years, privately-owned station bTV reported.
The investors, however, should meet certain conditions regarding the number of jobs they will open, and the wages they will pay should be above the average monthly wage in the country in the respective area.
According to economy ministry estimates, if an investor opens 500 jobs, paying workers a monthly wage of 2,000 levs, he will get back from the state some 4.2 million levs in social contributions. However, in the following three years the investor will pay over 6.0 million levs in social contributions and 7.5 million levs in taxes.
The draft amendments are expected to be voted upon in Parliament in September, to become a fact in October.