Tax on corporate income
All companies and partnerships (including non-incorporated partnerships) are
liable to corporate income tax. Corporate income is taxed at the rate of 10%. In
addition to the corporate tax there is a municipal tax at 0 %. The municipal tax
is deductible from the taxable base for corporate income tax. Thus the aggregate
tax rate (including corporate and municipal tax) for annual taxable income up to
BGN 50,000 is 28%, whereas for income above that aggregate tax rate is 34.3%.
Bulgarian resident entities are taxed on a worldwide basis. Other entities
are taxed on their Bulgarian-source income. Non-business organizations
(including governmental) are taxed for their business activities.
Taxation of company expenses
Entertainment and representative expenses, sponsorships and business gifts,
that do not bear the trade-mark of the donating company, are subject to 25%
taxation. Expenses representing bonuses to staff, benefits in kind, as well as
expenses for maintenance, repair and exploitation of cars are taxed at 20%.
Taxpayers are natural and legal persons who are owners of immovable
property, e.g. buildings. Property tax rate is 0,15%. If the owner is a company,
the tax base is the book value of the property.