Growing discontent of entrepreneurs forces GERB to save small businesses from high security contributions required by NRA

Lily Mircheva


"I firmly believe that we should not put at risk smaller companies where the owner is sometimes the only employee," said for Klassa, Menda Stoyanova, Chair of the parliamentary Budget and Finance Committee on the occasion of the increasing dissatisfaction of businesses by a decree of the National Revenue Agency (NRA), dated on February 25. It requires micro and small enterprises, whose managers are also owners and sole employees, to calculate their insurance contributions on a minimum ceiling of BGN 700 per month, which could be fatal for their business.
Until last year, the minimal earnings on which managers of such firms insured themselves was BGN 260. Since the beginning of 2010 the threshold was raised to BGN 420. The third wave of increase, which reached up to BGN 1200, however, was unbearable for the small businesses, and it caused a growing wave of discontent among entrepreneurs.

According to data from the National Statistical Institute, the companies that meet these conditions are about 200 000. Exactly these are actually in danger of bankruptcy. These companies are in the fields of the services, retail and small restaurants and catering establishments. According to the Chair of the Budget and Finance Committee at the National Assembly, there are no legal grounds for the owners of companies to be treated as hired workers, because the management contract has the character of a rental agreement. She promised that authorities would formulate the controversial tax issues more precisely and in favour of the small businesses.