The Bulgarian tax regime can be classified in two main categories - direct (corporate income tax, personal income tax and withholding taxes) and indirect (VAT and excise duties) taxation.
In 2011, standard corporate tax in Bulgaria is 10%. A special tax rate is applicable for companies dealing in shipping as well as companies engaged in games of chance and gambling.
The Personal income tax rate is 10% on taxable income. The individuals, considered Bulgarian tax residents are the ones that have stayed in Bulgaria for more than 183 days in 12-month period. Certain types of income from sources in Bulgaria and payable to non-resident legal entities or individuals are subject to withholding taxes. The withholding tax rate is 7% on dividends and liquidation quotas and 15% on the other types of taxable income. The withholding tax rate may be reduced under an applicable double tax treaty.
The standard VAT rate is 20%. Zero rate of VAT applies to exports of products, certain eligible exports of services, as well as to some other transactions. Excise duties are levied on goods and services listed in the Excise Duties Tariff.
Local taxes are regulated by the Local Taxes and Fees Act, the most important being the Immovable Property Tax, Transfer Taxes and Inheritance tax.
Sources of income
The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical decisions.