Corporate tax in Bulgaria

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Corporate tax in Bulgaria
 

Corporate tax in Bulgaria is applied to the profit the legal entities generate from the business realised by them. The base for assessment of the corporate tax is the accounting profit of the tax subject, realigned for tax purposes in compliance with the legal requirements.

 

The accounting profit is defined as the difference between the profits and losses for a certain tax period. After its assessment it is subject to realignment, i.e. legally regulated sums are added to or deducted from it.

 
In Bulgaria the corporate tax is regulated by Corporate Income Taxation Act and at present its rate is 10% (art. 20 of the Act).
 
The following are subject to this tax:
 
The profit of the local legal entities (registered in the territory of Bulgaria);
 
The profit of legal entities that are not traders carrying out purchase of goods or property for the purposes of subsequent sale, sale of own production goods, place of business, agency, transfer transactions, insurance, banking and currency exchange transactions, intellectual property transactions, tourist, advertising, information and other services, purchase, development and sale of real properties, lease, and renting property;
 
The profit of foreign legal entities from a place of business in the Republic of Bulgaria;
 
No corporate tax is applied to:
 
Legal entities that are subject to taxation with an alternative tax for the respective business activity. Taxable persons that are subject to alternative taxation are defined in the Corporate Income Taxation Act. For example, these can be gambling organisations.  
 
Deadline for corporate tax contribution – 31 March of the following reporting year.
 
The submission of the tax return is made in the offices of the NRA (National Revenue Agency), by post or electronically (in this case the company needs to have an electronic signature, and in the event of payment of the tax within this period you will have a discount in the amount of 1% of the tax value). In the event of a delayed tax payment, you owe penalty interest for default in payment.
 

Should any questions arise, please refer to our specialists for consultation!

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