In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The fiscal year begins on January 1st and ends on December 31st of the same year.
- Accounting Standards
International accounting standards were established in Bulgaria at the beginning of 2003. The standards apply to banks, insurance, social well-being and investment companies as well as unidentified companies. Bulgarian accounting standards are now in agreement with the standards of the International Accounting Standards Board.
- Accounting Regulation Bodies
National Assembly of the Republic of Bulgaria
Ministry of Finance
- Accounting Reports
The balance sheet is presented into accounts with liabilities composed of constant capital and debts, because there is a distinction between long and short-term debts.
The profit and loss account gives priority to the repository of the global production and leaves the choice of the costs classification either by nature or by function.
- Publication Requirements
Companies have to publish annually a balance sheet, a profit and loss account and an appendix.
- Professional Accountancy Bodies
Institute of Certified Public Accountants of Bulgaria , in Bulgarian
- Certification and Auditing
The external control of accounts must be confided to a body of certified experts (auditors) chosen by the company. Wolftheiss, PricewaterhouseCoopers, Kambourov & Partners, KPMG, Ernst & Young.
- Accounting News
Ministry of Finance
- Nature of the Tax
VAT (value added tax)
- Tax Rate
- Reduced Tax Rate
A 9% rate applies to the service of accommodation provided by a hotel-owner. A zero tax rate applies to exports and to transactions exempted from VAT under international agreements.
- Other Consumption Taxes
Bulgaria applies excise duty to alcohol, tobacco and cigarettes, money games, leather; tea and coffee, petroleum, gasoline, second-hand vehicles, and electricity.
For further information on excise duty consult the EU comparison table.
Learn more about Service Providers in Bulgaria on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
The standard rate applied is 10%.
- Capital Gains Taxation
Capital gains are included in the taxable income of a company and taxed at the normal corporate income tax rate. Quoted shares sold on the Bulgarian Stock Exchange are exempt. Unrealised capital gains or financial assets are taxable only in the case of financial institutions.
- Main Allowable Deductions and Tax Credits
Expenses are deductible for depreciation, net operation losses, payment to foreign affiliates, interest that follow the thin capitalization rules. A tax credit or exemption may apply under a tax treaty, and if no treaty relief is available, Bulgaria grants a unilateral domestic tax credit.
- Other Corporate Taxes
Fringe benefits tax; social and health security contributions; property tax; transfer tax; tax on expenses for entertaining (ceremonial expenses) and on expenses related to operation of means of transport; withholding tax on dividends, interest, royalties, capital gains and technical services fees payable to foreign residents.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
||Eastern Europe & Central Asia
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Individual income tax
- Allowable Deductions and Tax Credits
Donations are deductable up to 5%, freelancers, civil contractors, notary officers, physicians, dentists or other private practitioners may deduct 25% from their gross income; royalties are subject to 40% statutory deductions; rental income is subject to 10% statutory deductions; mandatory social security contributions borne by individuals are tax deductible in full; voluntary pension and unemployment contributions, as well as health insurance and life insurance contributions are also deductible up to certain limits; donations to certain organisations are also deductible up to defined limits; young married couples may deduct interest on mortgage loans for the first BGN 100,000 of the loan under certain conditions.
- Special Expatriate Tax Regime
Expatriates have no special tax regime.
Learn more about Taxes and Accounting in Bulgaria on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
Broadly speaking, Judiciary is independent in Bulgaria; though the human rights groups claim that the judicial system suffers from problems like perceived unwillingness to prosecute crimes against ethnic minorities; charges that the government denies.
- Equal Treatment of Nationals and Foreigners
The judicial system in the country broadly guarantees a fair trial to a foreign national.
- The Language of Justice
The judicial language in the country is Bulgarian.
- Recourse to an Interpreter
Having an interpreter is always possible.
- Sources of the Law and Legal Similarities
The main source of the law is the constitution adopted in July 1991; having civil and the criminal laws based on Roman law. Bulgaria accepts compulsory ICJ jurisdiction.
- Checking National Laws Online
Lex: database on Bulgarian law (in Bulgarian only)
Learn more about Lawyers and Legal in Bulgaria on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Kwintessential, Advice on business etiquette in Bulgaria
- Opening Hours and Days
Banks are open from Monday to Friday, from 9:00 to 17:00.
Public services are open Monday to Friday 8:30 to 17:00 with a one hour break from midday to 13:00.
The working week is 5 days Monday to Friday from 8/9 a.m. to 17:30 with a break from 12:00 to 13:00.
Shops are open every day including public holidays from 9:30 to 19:00.
|New Years Day
|St George's Day and Bulgarian Army Day
|Bulgarian Education and Literature Day
|National Revival Day Bulgaria
Periods When Companies Usually Close
||June and July
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Last Updates: December 2014