economy

Taxation of Bulgarian companies

Taxation of Bulgarian companies

Bulgarian companies have low taxes: they pay an income tax (or corporation tax) of 10%. This 10% rate is the lowest corporate tax among the countries of the European Union.

Companies with taxable income in a given year less than 300 000 leva (about € 150,000) are  not required to pay a deposit of tax (advance tax) in respect of the following year.

Companies that have realized a taxable income between 300,000 and 3,000,000 BGN (that is to say between 150,000 and 1.5 million euros) must pay a quarterly advance tax. These advance taxes are calculated  on the base of  the taxable profit for the previous year (in principle each three months a quarter of the corporation tax due for the previous year).

Companies that have realized a taxable income of more than three million leva (that is to say beyond 1.5 million euros) must pay for monthly tax advances equal to 1/12 of the corporate tax due for the previous year.