Company tax in the EU – Bulgaria
The company tax rate for Bulgaria is 10%.
When you set up your business entity, you should ensure that you do the following:
- Keep accounting records
- Prepare a company tax return
- Corporation tax must be paid by March 31st of the following calendar year. You must submit your annual tax declaration and pay the taxable amount owed (after the deduction of advance payments). You can benefit from a 1% rebate of annual company tax owed if you make an online payment, provided this amount does not exceed BGN 1 000;
You do not need to submit an annual activity report if you meet both of the following conditions:
1. you have not operated throughout the year, and
2. you have not reported revenue or expenditure for the year, in accordance with accounting legislation.
What profits do you pay company tax on?
Taxable profits include the money your company or association makes from:
- doing business;
- selling assets for more than they cost (chargeable gains);
- commercial activity or lease of property, etc.
If your company is based in Bulgaria, it pays company tax on all its profits from Bulgaria and abroad.
If your company isn't based in Bulgaria but has an office or branch there, it only pays company tax on its profits from its activities in Bulgaria.