Resumes from the main Bulgarian tax acts and laws

Main Bulgarian Tax Acts and Laws

In this page you can find the main Bulgarian Tax Acts, Laws and Codes in relation to local corporate and personal taxation.
If you are here now we may guess following situations:
First, you are here by mistake. So, please leave this page and visit our Main page.
Second, you are professional and just want to get some info in English. Please note that these are just extracts and if you are looking for the full texts you should contact us.
Third, you really want to learn or check or else for some special legal decrees. Then enjoy.

We are presenting here the main Bulgarian tax regimes in two main categories:

Direct Taxation:

Corporate Income Taxation
Personal Income Taxation
Local Taxes and Fees

And Indirect Taxation:

Value Added Tax
Excise Tax
Customs Duty

Also there is a brief presentation of the below Acts and Codes which are an integral part of our main activity – accounting, payroll and VAT compliance services.

Accountancy Act
Independent Financial Audit Act
Commercial Act
Labour Code
Tax and Social Insurance Procedure Code

Corporate Income Tax Act also known as Law on corporate income taxation

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 Bulgaria starts on 1st January and ends on 31st December.

Law on Taxes on the Income of Natural Persons also known as Personal Income Tax Act or Income Taxes on Natural Persons Act

According to this 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 and Fees Act

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;
• quarrying;
• technical services;
• administrative services;
• lease of grave plots;
• visitor (tourist) fee;
• dog ownership;

Value Added Tax Act

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 this Act. Any taxable person has also the right to apply for optional voluntary registration under the conditions of this Act, without having the above turnover.

If you are still not VAT registered in Bulgaria please pay attention to art. 178

Art. 178. A person, tax liable under this Act, who is obliged, but does not submit application for registration or application for termination of registration in the terms established under this Act, shall be punished with fine in extend from 500 to 5 000 BGN.

One of our main businesses is VAT registration and compliance services provided to foreign companies. We have companies which can act as Accredited Representatives according to the local VAT Act.

Once VAT registered please pay more attention to art. 179 para. 1.

Art. 179. (1) A person, who being obliged, does not submit VAT return under art. 125, par. 1, the (VIES) declaration under art. 125, par. 2, the ledgers under art. 124 or does not submit them in the provided terms, shall be punished with fine, in extend from 500 to 10 000 BGN.

 

To be honest this matter is a bit complicated, if you are not in our business, and it is not so easy to understand and apply all these provisions correctly. Nothing to say that it is changing constantly. What we could suggest you – please contact us, send your query and get back to your main business. We will gladly come back to you with the needed decision.