Personal income tax rate:

Bulgaria Personal income tax rate 10%

Accounting Services

Accounting Bulgaria


ACC offers a full range of accountancy services with an emphasis on payroll, tax consulting and annual and periodic financial statements.

ACC Bulgaria - it's that simple!

Payroll Accounting

Payroll Bulgaria
At the Accounting Competence Center in Bulgaria, we view our work as more than just a job to complete. It's an entire way of doing business.

Payroll in Bulgaria - quickly, professionally and efficiently.

Taxes in Bulgaria


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Tax planning and Tax optimization

ACC Tax Specialists bring combined experience and expertise to client assignments - we are creative, driven, diligent and enjoy solid reputations with Bulgarian government representatives based on a long history of mutual respect. These relationships, combined with extensive tax optimizartion experience allow for a unique approach to tax consulting.

GENERIC TAX NAME Personal income tax
Tax name in BG Закон за данъците върху доходите на физическите лица
Tax name in English Personal income tax
Tax in force since 01/01/2007
Legal base
Promulgated in issue 95 of the State Gazette of 24 November 2006 and effective as from 1 January 2007., amended SG No 52/29.06.2007, effective 1.11.2007 , amended and supplemented, SG No 64/7.08.2007., amended and supplemented SG No. 113/28.12.2007 and effective as from 1 January 2008. 
Type of tax
DIRECT TAXES
Personal income tax
Corporate income tax
Other
INDIRECT TAXES
VAT
Excise duty
Other
SOCIAL SECURITY CONTRIBUTION

Who Sets
the tax rate the tax base Reliefs
Central authority
Regional authority
Local authority
Social security
 
Central authority
Regional authority
Local authority
Social security
Central authority
Regional authority
Local authority
Social security

Region of application
Republic of Bulgaria.

Taxpayer
Tax liable persons shall be:
-resident and non-resident physical persons liable to taxation hereunder;
-resident and non-resident persons obligated to withhold and pay taxes hereunder.

Tax object
Income of resident and non-resident physical persons shall be subject to taxation.
Resident physical persons shall be liable to taxes on income from sources in the Republic of Bulgaria and abroad.
Non-resident physical persons shall be liable to taxes on income from sources in the Republic of Bulgaria

Basis of assessment
Taxable shall be all-source income earned by the tax liable person throughout the tax year, except for income that is non-taxable by virtue of this law.

Where the Personal Income Tax Law provides for tax deductions, when determining the taxable income from a given source, the expenses hereunder shall be considered.

Depending on the source, the types of income are as follows:

1. income from labour employment;
2. income from sole proprietor's enterprise;
3. income from other types of economic activity;
4. income from rents or any other vesting of rights or property for consideration;
5. income from transfer of rights or disposal of property;
6. income from other sources as well as income liable to final taxes hereunder.

Income may be cash and non-cash depending on the manner of payment.

Where the cash income is in foreign currency, it is recalculated in BGN under the exchange rate of the Bulgarian National Bank as of the date of acquisition thereof.

Non-cash income is valued in BGN according to the market price as of the date of acquisition thereof. .

Tax due date
In case of income from labour employment, the tax which the income payer is obligated to withhold shall be paid by the 10th day of the month following the month of withholding the tax.
The tax due on the overall annual tax base shall be paid by the 30th April of the year following the year of generating the income. (Except for persons employed under labour employment only and not filing annual tax returns).

Deductions - allowances - tax credits - exemptions
-Tax relief for persons with impaired working capacity

The amount of the annual tax base for persons with 50 or more than 50 per cent impaired working capacity pursuant to an effective decision by a competent authority shall be reduced with 7 920 BGN including the year of occurrence of the impaired working capacity and the year when the decision validity expires.

The taxable income for the month of expending labour for income from labour employment of persons with 50 or more than 50 per cent impaired working capacity shall be reduced whit 660 BGN including the month of occurrence of the impaired working capacity and the month when the decision validity expires.

-Tax relief for personal voluntary social security and insurance contributions

The annual tax bases shall be reduced by the amount of the personal voluntary additional social security contributions made during the year and totaling up to 10 per cent of the annual tax base amount as well as by the amount of the personal voluntary health insurance contributions and premium/payments under Life insurance paid during the year and totaling up to 10 per cent of the annual tax bases

-Tax relief for personal social security contributions when retiring

-Tax relief for donations
*up to 5 per cent where the donation shall be in favour of certain organisations, institutions, persons, etc. (for instance, healthcare and medical treatment establishments; cultural institutes, etc.)
*up to 15 per cent for donations in favour of culture;
*up to 50 per cent where the donation is in favour of the Medical Treatment of Children Fund Centre.

The total amount of tax relief for donations may not exceed 65 per cent of the annual tax base amount pursuant to paragraph 1.

Tax collector
-Period for and place of payment of taxes withheld by the income payer
*for labour employment, the tax withheld by the income payer shall be paid by the 10th day of the month following the month of withholding the tax.
*the tax shall be paid into the Republican budget at an account of the territorial office of the National Revenue Agency as per the place of registration of the income payer.

-Period for and place of payment of taxes by the person earning the income
*the tax due on the overall annual tax base shall be paid by 30 April of the year following the year of earning the income.
*the tax shall be paid into the Republican budget at an account of the territorial office of the National Revenue Agency as per the permanent address of the resident physical person, including the sole proprietor.

Persons filing their annual tax return by 10 February of the following year shall enjoy a discount of 5 per cent from the part of the tax to be paid under the annual tax return within that same period.

Persons electronically filing their annual tax return within the period specified in paragraph 1 shall enjoy a discount of 5 per cent from the part of the tax to be paid under the annual tax return within that same period on condition that they have not applied paragraph 2.

Comments
Annual tax table
The amount of the tax on the overall annual tax base shall be determined in line with the table below: Flat rate - 10 per cent

Tax revenue

Bulgaria Personal income tax


This file was last updated on 2008/08/14.