Demystifying Basic Elements of Bulgaria Tax Policy

The truth is: there is nothing mystical about the Bulgarian tax system.

On the contrary, investors benefit from:

  • Flat income tax rate atg 10 % applies to both individuals and companies.
  • Dividends are taxed at 5 %.
  • Electronic tax administration is well established. Business taxpayers can file, view and correct their tax returns online using the implemented software system by the National Tax Authority. They can also use it to views their tax account balances and VAT returns, and submit VAT refund applications.
  • Estonian VAT legislation is based on the EC VAT Directive (2006/112/EEC).
  • The VAT rate is 20 %.
  • An option to tax is available in respect of certain exempt supplies.