Tax Optimization Is an Art

Corporate Profit Tax

Corporate profit tax rate

10% on restated taxable profit.

Liable entities

Companies and partnerships established under Bulgarian law.

Places of conducting business in Bulgaria of non-resident entities.

Taxable profit

Financial result adjusted for tax purposes.

Accounting Standards

IFRS or local Bulgarian GAAP (for small and medium-sized enterprises till end of 2010).

Tax adjustments

Adjustments are made for non-business related costs or expenses that are not duly documented. Interest paid is restricted under standard thin capitalization rules. Expenses for impairment of assets; dividends received from local or EU based companies are also adjusted for.

Tax depreciation rules

Maximum annual tax depreciation rates between 4% and 50%, depending on the type of asset.

Fiscal year

The tax (fiscal) year is the calendar year with no availability to opt for different reporting and accounting dates.

Further Information

For more information on Bulgarian Taxes visit our Downloads page where you will find our Quick Reference Guide on Bulgarian Tax Framework.

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