Bulgaria

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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 am 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	January 1
National Holiday	March 3
Easter	April
May Day	May 1
Public Holiday	May 2
Public Holiday	May 5
St George's Day and Bulgarian Army Day	May 6
Bulgarian Education and Literature Day	May
Unification Day	September 6
Independence Day	September 22
Christmas	December 25
St Etienne	December 26

Summer vacation	June and July
Christmas vacation	December

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: 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 leave the choice of the costs classification either by nature or by function.
Publication requirements: Companies have to publish a balance sheet, a profit and loss account and an appendix.
Professional accountancy bodies: Deloitte Bulgaria
Ernst & Young Bulgaria
Certification and auditing: The external control of accounts must be confided to a body of experts (auditors) chosen by the company.
Accounting news: Ministry of Finance

Nature of the tax: VAT (value added tax)
Tax rate: 20%
Reduced tax rate: A 7% rate applies to the service of accomodation provided by a hotel-keeper. A zero tax rate applies to exports and to transactions exempted from VAT under international aggreements.
Other consumption taxes: Bulgaria applies excise duty to alcohol, tobacco and cigarettes, money games, leather; tea and coffee, petroleum, gasoline, and second-hand vehicles.
For further information on excise duty consult the EU comparison table.

Company tax: The standard rate applied is 10%. Moreover, a municipal tax is calculated on the taxable base for corporate income tax. So, the global tax rate is 28% for annual taxable incomes below BGN 50,000 and 34.3% when beyond BGN 50,000.
Capital gains taxation: Capital gains tax rate is 10%.
Other corporate taxes: Capital gains tax, Dividend tax.

Income of any individual is subject to a flat income tax rate.

10%

Allowable deductions and tax credit: There are several types of reductions or allowances applying in Bulgaria, For example, donations are deductible up to 5%,
Special expatriate tax regime: Foreign residents in Bulgaria are taxed uniquely on their Bulgarian income. In this case they must be resident in Bulgaria for less than 183 days per 12 month period.

Countries with whom a double taxation treaty have been signed: See the list of the double Taxation Agreements signed by Bulgaria.
Whithholding taxes: Dividends: 5%, Interest: 10%, Royalties: 10%

National organizations: The organisation for the protection of trademarks and patents is the Bulgarian Patent Office.
Since 1993, there is a law on copyrights and intellectual property. There is also a law on patents but it is not very reliable.
Bulgaria signed the Agreement of Paris concerning the protection of industrial property and the agreement which establishes the World Organization of Intellectual property (WIPO). Concerning patents, Bulgaria ratified the treaty of co-operation on patents.
Regional organizations: The European Patent Office

Type of property and law	Validity	International agreements signed
Patent Patents Act 1991	maximum 16 years
Trademark Trademark Law 1999	10 years. If the trademark has not been used within 5 years of the deposition then it reverts to the public domain.	Nice agreement
Design Industrial Design Law 1999	10 years renewable 3 times every 5 years.
Copyright Copyright Law and supporting rights	For the author's lifetime and for 70 years after his death	Berne convention Convention for the Protection of Producers of Phonograms against unauthorized duplication of their phonograms
Industrial Models Industrial Design Law	10 years and may be renewed 3 times in 5 years.

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 is going to join the European Union (EU) in January 2007, at the earliest. The country accepts compulsory ICJ jurisdiction.
Checking national laws online: Lex: database on Bulgarian law (in Bulgarian only)

National standards organizations: Bulgarian Standards Institute
Integration in the international standards network: The State Agency for Standardisation and Metrology (BDS) is the organisation in charge of the standardisation and ratification of laws in Bulgaria. Its purpose is to harmonise these standards with the European ones.
The standard ISO 9000, though optional is a factor of competitiveness.
The Committee of Normalisation and Metrology has the power to grant the import of some goods when the standard of the country of origin does not totally match the Bulgarian ones.
Special certificates and ratification are compulsory for household electrical appliances, mobile phones equipment, pharmaceutical and cosmetic products.
Classification of standards: Bulgaria upholds international standards and European Union Standards.
Online consultation of standards: Visit the Bulgarian Standards Institute online.
Certification organizations: Bulgarian Standards Institute

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