In this page you can find the text of main Bulgarian Tax Acts and Laws in relation to local corporate and personal taxation. But if you do not want to drown in the huge and complicated texts presented below, please do not hesitate to contact us. Our team will be glad to help you.
The Bulgarian tax regime can be presented in two main categories:
- Corporate Income Taxation
- Personal Income Taxation
- Local Taxes and Fees
And Indirect Taxation:
- Value Added Tax
- Excise Tax
- Customs Duty
According to Corporate Income Tax Act all companies and partnerships, carrying out business in Bulgaria, are liable to corporate taxation. Foreign companies are taxed on their Bulgarian-source income.
Annual profit must be declared, at the latest, till 31 March of the year following the taxable year. The taxable year in Bulgariastarts on 1st January and ends on 31st December.
According to Income Taxes on Natural Persons Act tax liable persons are individuals, resident and non-resident of Republic of Bulgaria, and sole-trader corporate entities. Residents are considered individuals who reside in Bulgaria longer than 183 days in any twelve-month period.
Foreigners shall be liable to taxes in respect of any income acquired thereby, only from sources inside the Republic of Bulgaria.
Local taxes are paid in cash at the cash departments of the municipal administration, or by bank transfers, by means of crediting the relevant bank accounts. Local taxes cover the following main items:
- immovable property tax;
- inheritance tax;
- gift tax;
- property acquisition tax;
- motor vehicle tax;
The Bulgarian Municipalities also collect the following local fees for:
- disposal of household waste;
- use of retail markets, wholesale markets, fairs, sidewalks, squares and street roadways;
- for attendance at creches, provision of cooked take-away meals from baby-food kitchens, attendance at kindergartens, residence at public care homes, camps, dormitories, and use of other forms of municipal social services;
- technical services;
- administrative services;
- lease of grave plots;
- visitor (tourist) fee;
- dog ownership;
Any taxable person having a taxable turnover of BGN 50 000, for a period not exceeding 12 consecutive months last preceding the current month, is obligated to submit an application for registration under VAT Act. Any taxable person in Bulgaria has also the right to apply for optional voluntary registration under the conditions of this Act, without having the above turnover.
Subject to levying with excise duty in Bulgaria are:
- alcohol and alcoholic beverages;
- tobacco products;
- energy products;
- coffee and coffee extracts;
Some excise goods are subject of exempt from payment of excise duty, and in some cases the already paid duty could be restored according to the provisions Law on Excises and Tax Warehouses.
Bulgarian Customs Act is generally based on the EU Customs Code. The same procedure and regimes as those of the EU are applied: release for import, transit, customs warehousing, inward processing, processing under customs control, temporary admission, outward processing, export, temporary export, etc.
A customs agent can represent importers and exporters in fornt of the customs bodies for carrying out the customs procedures.
No customs duties are charged for exported goods.
Bulgariais a member of the World Trade Organisation and follows its rules related to the determination of origin of goods.
If you want to get some more information about the customs regime in Bulgaria you may also visit the web site of the Bulgarian Customs Agency.