The amount of VAT in Bulgaria is 20% with some exceptions. Some deals are free of VAT /land purchase, shares purchases, etc /. Some are with VAT in smaller amount.
The taxation of the annual income of the individuals in Bulgaria is in accordance with the following progressive table:
Annual Income Taxation:
up to 2400 leva - Free of taxes
from 2400 leva to 3000 leva - 20 % for the income over 2400 leva
from 3000 leva to 7200 leva - 120 leva + 22 % for the income over 3000 leva
over 7200 leva - 1044 leva + 24 % for the income over 7200 leva
The dividends accounted from Bulgarian companies in benefit of the shareholders in the respective company will be taxed with “ final tax” which is always in the amount of 7% . This income, after the taxation with 7%, will not be included in the total income described in the table above.
The taxation of the real estate assets is 0.15% of the tax valuation per annum. The valuation is in accordance with addendum No 2 of the Law for the local taxes and fees.
Also the owners of real estate properties have to pay fee for the treatment of the trash, which fee is different for the territory of every one municipality. The fee is defined every year by the municipality’ s council.
The taxation of the real estate assets is 0.15% of the tax valuation per annum. The valuation is in accordance with addendum No 2 of the Law for the local taxes and fees.
Also the owners of real estate properties have to pay fee for the treatment of the trash, which fee is different for the territory of every one municipality. The fee is defined every year by the municipality’ s council.
The
tax
year
in
Bulgaria
is
the
year
ending
on
December
31.
A
limited
company
files
an
annual
report
by
March
31.
An
individual
must
file
an
annual
report
by
April
15.
Companies
that
finished
the
previous
year
with
a
profit
pay
12
monthly
advance
payments
in
the
following
year.
New
companies
make
4
quarterly
advance
payments.
Did You Know?
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Bulgaria Translation