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Bulgarian Tax Rates at a Glance

Some of the main tax rates in Bulgaria at present are:

• Corporate Income Tax – 10%
• Value Added Tax Rate – 20%
1. 0% doing export;
2. 7% doing some specific tourist services
• Withholding Tax
1. 7% on dividends or liquidation quotas;
2. 10% on any income from financial assets, income from transactions in financial assets, any interest payments, including interest within payments under a financial lease contract; income from rent or other provision for use of movable or immovable property; copyright and licence royalties; technical assistance fees; payments received under franchising agreements and factoring contracts; compensations for management or control of a Bulgarian legal person; income from real estate or from transactions in real estate.
3. the withholding rates could be less these figures if there is Double Tax Treaty;
4. any dividends charged by resident legal persons in favor of a permanent establishment in another Member State shall not be subject to levy of a withholding tax.
• Tax on Expenses
1. 10% on representative expenses, sponsorships, some expenses related to usage of vehicles, some donations;
2. 10% on some social expenses.

Note: Above rates are only for your general information and if you want to apply or use them in your calculations or business, it is better to contact our specialists. They will provide you with professional help and guiding lines on this issue.