0 % corporate tax within Europe? Yes, it is possible!
Retention of up to 100% corporation tax in Bulgaria by taxable persons carrying out manufacturing activities solely in municipalities where the rate of unemployment for the year preceding the current year was by 25 percent or higher than the national average for the same period.
The municipalities where the rate of unemployment is 25% or more above the national average are designated annually by an order of the Minister of Finance following a motion by the Minister of Labour and Social Policy. The order is promulgated in the State Gazette.
Taxable persons can retain 100% of the corporation tax due from them in respect of the taxable profit derived by them from manufacturing activities, including the processing of materials supplied by customers, where the following conditions exist simultaneously:
- The taxable person carries out manufacturing activities solely in municipalities where the rate of unemployment for the year preceding the current year was 25% or more above the national average for the same period;
- The taxable person should have at least 10 employees for the taxable period;
- At least 30% of the employees should b a resident of this municipality.
The corporation tax retained must be invested in the acquisition of assets that form part of the initial investment made within four years after the beginning of the year for which the retention is enjoyed. The value of the intangible assets forming part of the initial investment must represent not more than 25% of the value of the tangible fixed assets forming part of the initial investment. At least 25% of the value of the assets forming part of the initial investment must be self-financed or debt-financed, and the corporation tax retained as well as other resources containing any State aid element are not treated as self-financing or debt-financing.
The ownership of these assets may not be transferred within five years after the date of their acquisition.
Innovires legal can assist you with:
- Application for a corporate name
- Preparation of company documents and company incorporation in Bulgaria
- Application for EU VAT number
- Translation of company documents
- Business accounts in a Bulgarian bank including internet banking services
- General Power of Attorney with certified translation and apostil
- Company address – domicile – in Sofia, Bulgaria
- Secretarial services
- Accounting, current VAT registration, declaring annual financial statements
- Company stamp
Learn more about the company incorporation here.
Innovires professional and experienced team will take care of the entire procedure of retention of up to 100% corporation tax of your company in Bulgaria. Please feel free to contact us.