| GENERIC TAX NAME |
Withholding tax on dividends and income of foreign persons |
| Tax name in BG |
Данък в/у дивидентите и доходите на чуждестранни лица |
| Tax name in English |
Withholding tax on dividends and income of foreign persons |
| Tax in force since |
1998/01/01 |
| Legal base |
Promulgated in issue 105 of the State Gazette of 22 December 2006 and effective as from 1 January 2007and 110 of the State Gazete of 21 December 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 |
| Any resident or non-resident legal person, including any public-financed enterprise, as well as to any resident or non-resident association which is not a legal person (unincorporated association). |
| Tax object |
1. Any dividends and any portion of the residual distribution of company assets upon winding-up, as distributed by any resident legal person or unincorporated association in favour of any resident natural person, any resident legal person which is not a merchant (including any municipality), or any non-resident person, shall attract a final tax withheld at source.
2.The gross amount of income derived from:
-any interest, inter alia any interest included in payments arising from a financial lease;
-any copyright and licence royalties;
-any technical assistance fees;
-any income derived from use of movable or immovable property, and any payments arising from an operating lease, franchising agreement or factoring contract which have their source inside the Republic of Bulgaria;
-any compensations under management contracts;
-any remuneration received in the capacity of member of a management body or a supervisory body of a Bulgarian legal person |
| Tax due date |
| The payers of final taxes withheld at source shall be obligated to withhold the taxes due and to remit the declared taxes to the state budget on or before the last day of the month next succeeding the quarter of the charge. If there is tax treaty between Republic of Bulgaria and the foreign country the tax is paid quarterly and the tax return is submitted quarterly, if there is no tax treaty between the two countries the tax has to be paid monthly before the last day of the month next succeeding of the month of the charge. |
| Deductions - allowances - tax credits - exemptions |
| No tax shall be withheld at source on any income accruing from transactions in shares in public companies, marketable rights attaching to shares in public companies and units of collected investment schemes transacted on a regulated Bulgarian securities market. |
| Tax collector |
| The tax due shall be credited to the territorial directorate of the National Revenue Agency at the place of registration. |
| Economic function |
Capital income: corporations
Capital income: income of self-employed |
This file was last updated on 2008/08/14.
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