| GENERIC TAX NAME |
Corporate income tax |
| Tax name in BG |
Корпоративен данък |
| Tax name in English |
Corporate Income Tax |
| 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 |
| The profit and income accruing to any resident or non-resident legal person, including any public-financed enterprise. |
| Basis of assessment |
| The taxable profit shall be a positive quantity computed on the basis of the financial result (accounting profit or loss), arrived at as the difference between income and expenses before assessment of taxes for the account of the profit and adjusted according to the procedure established by the Corporate Income Tax Act. |
| Tax due date |
| Corporate income tax for any relevant year shall be remitted on or before the 31st day of March in the next succeeding calendar year after deduction of the amounts of tax advanced payments already made. |
| Deductions - allowances - tax credits - exemptions |
Exemptions:
-The licensed special purpose investment companies;
-Any transactions with shares in public companies, any marketable rights attaching to shares in public companies and any units of collective investment schemes in transactions effected on a regulated Bulgarian securities market;
Deductions:
-Any taxable person shall be allowed to retain 100 per cent of the corporation tax due there from on the manufacturing activities carried on thereby, including processing of materials supplied by customers; this deduction is for companies investing in regions with high unemployment rate where the certain conditions are simultaneously fulfilled
-Any social and health insurance fund, any public-financed scientific research enterprise and any public higher school, which has been established by statute, and any state-owned and municipal school included in the system of public education shall be allowed to retain 50 per cent of the corporation tax
-Any agricultural producer which is a legal person shall be allowed to retain 60 per cent of the corporation tax on unprocessed plant and animal produce, inter alia from apiculture, sericulture, freshwater fisheries in man-made reservoirs and hothouse horticulture excluding floriculture.
-Any cooperative and any enterprise formed thereby, which is affiliated to a national cooperative union, shall be allowed to retain 60 per cent of the corporation tax due there from for the period ending on the 31st day of December 2010.
-The Bulgarian Red Cross shall be allowed to retain 100 per cent of the corporation tax due there from. |
| Tax collector |
-Any taxable person shall make monthly prepayments of corporation tax on the basis of one twelfth of the annual taxable profit for the last preceding year as declared.
-Any monthly tax prepayment shall be assessed for the period commencing on the 1st day of April and ending on the 31st day of December on the basis of the taxable profit for the last preceding year and, for the period commencing on the 1st day of January and ending on the 31st day of March, on the basis of the taxable profit for the year before the last preceding year.
-Any taxable person which has shown a tax profit of a negative or nil value for the last preceding year, shall make quarterly tax prepayments of the cumulative taxable profit accruing thereto for the relevant period of any current year. |
This file was last updated on 2008/08/14.
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