Meal vouchers up to EUR 200 from 2027: what is taxed at 7% and who withholds it (draft law)
A Bulgarian bill would let meal vouchers reach EUR 200 a month, with a 7% final tax on the part above EUR 102.26. The tax on personal use of company assets would also rise from 3% to 7%.
Employers who give meal vouchers have a decision to make for 2027. A bill amending Bulgaria's Corporate Income Tax Act would almost double the maximum voucher value. The part above today's limit, however, would be taxed, and the employer would withhold the tax.
Please note: this is a bill, not a law in force. The amounts and rules may change at second reading. If adopted, the law takes effect on 1 January 2027.
What is proposed
Bill No. 52-602-01-65 was tabled in the National Assembly on 5 November 2026. It also amends the Personal Income Tax Act.
The main changes for vouchers are:
- A higher cap. The maximum value of electronic meal vouchers per employee rises to EUR 200 a month, from BGN 200 (EUR 102.26) today.
- A tax-free part. Vouchers up to EUR 102.26 a month remain tax-free income for the employee.
- A 7% final tax. The gross amount above EUR 102.26 is subject to a 7% final tax under the Personal Income Tax Act.
- Taxed under personal income tax rules. Under a new Article 205a of the Corporate Income Tax Act, social expenses for vouchers above EUR 102.26 are taxed under the personal income tax rules instead.
What the employee receives
| Vouchers per month | Taxable part | 7% tax | Net to employee |
|---|---|---|---|
| EUR 102.26 | EUR 0 | EUR 0 | EUR 102.26 |
| EUR 150 | EUR 47.74 | EUR 3.34 | EUR 146.66 |
| EUR 200 | EUR 97.74 | EUR 6.84 | EUR 193.16 |
The EUR 200 example comes from the bill's explanatory memorandum. The EUR 150 row is calculated the same way.
The tax is withheld from the voucher value, so the employee receives the net amount. For the employer, the cost is the gross value.
Budget example. A company with 20 employees that now gives EUR 102.26 a month each spends EUR 2,045.20 a month on vouchers. Raising the value to EUR 200 would bring the cost to EUR 4,000 a month. Employees would receive EUR 3,863.20 net in total, and the employer would withhold and pay EUR 136.80 in tax.
What employers would have to do
The employer withholds the tax and pays it to the state. The deadline is the 15th of the month after the month in which the vouchers are given.
In practice, that means:
- working out the taxable part for each employee every month;
- withholding the 7% tax and paying it on time;
- keeping records of which part of the vouchers is taxable and which is not.
It is not yet clear which return will be used to declare this tax, or how it will appear in the annual Article 73 report. The final text of the law should settle this.
The bill does not amend the Social Security Code or expressly settle whether the part above EUR 102.26 enters insurable income. We will update this article once the treatment is clarified.
The tax on personal use of company assets rises to 7%
The bill also raises the tax on expenses for personal use of company assets and staff (Article 216(2) of the Corporate Income Tax Act). The rate goes from 3% to 7%, and all other rules for applying it stay the same.
This affects businesses that allow company cars, phones or other assets to be used privately as well as for work.
Illustrative example. If a company's annual expenses for personal use of assets are EUR 10,000, the tax today is EUR 300. At 7%, it would be EUR 700, an extra EUR 400 a year.
What to plan in December
It is worth settling your 2027 benefits policy before the year starts. Questions to discuss:
- Voucher value. Do you stay at EUR 102.26 tax-free, or raise the value and accept a 7% tax on the difference?
- Internal documents. If the voucher value is set in internal pay rules or a collective labour agreement, plan the corresponding update.
- Payroll system. It must calculate the taxable part and the tax withheld separately for each employee.
- Company assets. Review which assets are also used privately and what the higher tax would cost.
Do not change payroll calculations until the law is adopted and published in the State Gazette. The amounts and rules may still change at second reading.
This article gives general information as of 10 November 2026 and does not cover individual cases. Check with your accountant or the National Revenue Agency before acting.