Tax Service
Go beyond the advertised 10% income tax in Bulgaria. Learn how to get the most of the tax system for both corporate and individual income.
Accounting Services Bulgaria provides consultations and on-going support on tax matters to both individual and corporate clients. We help our customers understand the practical meaning of the regulatory framework, keep them up-to-date with legislative changes and amendments and advise them on how to protect their best interest within the legal obligations.
We provide relevant and timely information on tax types, due dates and rates and, of course, we perform all the necessary paperwork, including preparation and submission of tax-related documents, protocols and forms.
The corporate clients of Accounting Services Bulgaria get professional consultations on tax compliance, tax returns, and tax planning given the specific needs of their organizations.
You can rely on our professionalism in all areas of tax legislation, the major corporate taxes being:
- VAT
- Income Tax
- Withholding Tax
- Dividends Tax
- Tax on income from shares
- Property Tax
We also provide additional consultations for non-resident firms and industry-specific tax obligations.
Tax Environment and Incentives in Bulgaria
Bulgaria’s favourable tax environment is among the main factors that attract foreign investments. Check out the highlights.
- Key advantage is the flat corporate income tax of just 10%. There is additional corporate income tax incentive for some manufacturing activities in high unemployment regions, where the tax could be cut down to 0%.
- Standard Value Added Tax is 20% but there are tax reductions and exemptions. VAT for the Tourism sector is 9%. Supplies and services from and to VAT-registered companies in the EU is 0%. In addition, government approved investment projects that are greater than EUR 5 million and create more than 50 jobs enjoy 2-year tax exemption for equipment imports.
- Withholding tax on dividends and liquidation quotas is 5% in general but 0% for EU tax residents.
- All security payments on employees’ salaries at the expense of the company amount for 17.2%.
Overview and comparison of the tax burden in Bulgaria and key EU economies, is provided in the table below:
| Country | Standard | Standard | Individual Income Tax | |
|---|---|---|---|---|
| Vat | Corporate | |||
| Tax | ||||
| Bulgaria | 20% | 10% | Flat rate 10% | |
| Austria | 25% | 20% | Progressive rate up to 50% | |
| France | 19.6% | 33.33% | Progressive rate up to 41% | |
| Germany | 19% | 15% | Progressive rate from 14% to 45% | |
| Italy | 21% | 27.5% | Progressive rate up to 43% | |
| Portugal | 23% | 25% | Progressive rate from 11.5% to 50% | |
| Spain | 21% | 30% | Progressive rate from 24% to 45% | |
| United Kingdom | 20% | 24% | Progressive rate from 20% to 50% | |
Source: Federation of international Trade Associations: http://www.fita.org/countries/