The National Revenue Agency (NRA) announced the start of the 2010 income tax declaration campaign on January 4 2010, Bulgarian National Television (BNT) said.

The new feature this year is that all forms of income over and above that received in 2009 in the form of salary must be reported to the NRA. This includes personal loans of more than 10 000 leva.

NRA asked for this amendment to the law because personal loans were often used by taxpayers to explain the source of their income.

According to NRA, this was the explanation given on every second inspection of people's incomes when tax inspectors register discrepancies between a person's legally declared income and his or her living standard.

Personal loans in Bulgaria amounted to about 2.7 billion leva NRA said in December 2009. Most of these loans had no interest on them and had a span of 10 years. Almost all these loans, however, were fake and conducted with the specific purpose of evading taxation.

Married couples not over the age of 35 who have taken out a mortgage loan can take advantage of tax relief.

Individuals who for the past five years have taken loans or given loans of more than 40 000 leva should also report the money to tax authorities.

Bank loans do not have to be included in income tax declarations, BNT said.

Even if an individual is not obliged by law to file an income tax declaration, he or she must do so this year.

Income tax declarations must be filed by April 30 2010. Taxes also must be paid by the same date. Those who file their tax declarations by February 10 2010 can take advantage of a five per cent discount on the tax due.

Bulgarians are subject to a 10 per cent tax on their income after Parliament introduced a flat tax rate at the end of 2007.

Declarations can be filed at NRA's offices, via postal services or online by using an e-signature.