In
2004,
standard
corporate
tax
in
Bulgaria
is
19.5%.
The
tax
is
expected
to
become
15%
in
the
year
2005.
BULGARIA
-
INCOME
TAXES
All
income
of
any
individual
is
subject
to
a
progressive
tax.
As
at
2003,
an
individual
pays
a
progressive
tax
of
15%
-
29%.
Exemptions
are
granted
to
taxpayers
with
specific
types
of
income.
The
standard
rate
of
tax
for
a
corporation
in
2004
is
19.5%.
INCOME
TAXES
An
individual
in
Bulgaria
is
liable
for
tax
on
his
income
as
an
employee
as
well
as
on
income
as
a
self-employed
person.
In
the
case
of
an
individual
who
answers
the
test
of
a
"permanent
resident"
of
Bulgaria,
tax
will
be
calculated
both
on
his
income
earned
in
Bulgaria
and
overseas.
A
foreign
resident
who
is
employed
in
Bulgaria
pays
tax
only
on
his
income
in
Bulgaria.
To
be
considered
a
Bulgarian
resident,
the
requirements
must
be
met
of
residency
in
Bulgaria
of
at
least
183
days
in
any
calendar
year,
and
occasionally
also
if
residency
is
less
than
183
days,
if
the
individual
has
a
home
in
Bulgaria
that
is
his
main
residence,
he
will
be
considered
a
Bulgarian
resident.
An
employer
is
obligated
to
deduct
the
income
tax
payable
as
well
as
national
insurance,
immediately
each
month
from
a
salary
paid
to
an
employee.
Certain
payments
are
deducted
from
taxable
income
as
detailed
below.
INDIVIDUAL
TAX
TABLE
TAXATION BRACKET
INCOME (BGL)
0
to 1,320
15%
1,321 - 1,800
22%
1801 - 3,000
26%
3,001 - 7,200
29%
7,201 and above
CAPITAL
GAIN
TAX
In
Bulgaria,
capital
gains
tax
is
paid
by
an
individual
on
the
sale
of
real
estate
or
work
vehicles
such
as
planes
or
cars
on
the
difference
between
the
sale
price
and
the
higher
of
two
calculations
-
the
market
price
of
the
asset
sold,
or
the
cost
of
purchase
linked
to
the
index.
An
individual
who
sells
one
moveable
asset
pays
tax
on
the
difference
between
the
sale
price
and
the
cost
of
the
asset
sold
on
adjusting
the
cost
to
the
rate
of
inflation.
Capital
gains
tax
for
companies
in
Bulgaria
is
added
to
the
regular
income.
REPORTING
DATES
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.
