Paying corporate tax in Bulgaria. Annual tax statement.
According to the Bulgarian Corporate Income Tax Act (CITA) all companies and partnerships carrying out business in the country, are liable to a corporate income tax at a rate of 10%.
The tax base for determining the corporate profit tax is the tax that is determined by Bulgarian CITA as a positive financial result.
Corporate tax is declared by filing an annual tax statement by taxpayers or their representatives authorized by the competent territorial directorate of the National Revenue Agency (NRA).
The model declaration is approved by the Minister of Finance and published in Bulgarian State Gazette.
Bulgarian resident entities are taxed on a worldwide basis. Please note, foreign entities are taxed on their Bulgarian-source income.
A company is considered as a Bulgarian tax resident if its registered in Bulgaria. Companies that are non-residents in Bulgaria, but operate in Bulgaria through a branch, office, agency or other form of a permanent establishment are only liable to tax on the profits generated through their Bulgarian establishment.
Important! Annual profit must be declared no later than 31 March of the year following the taxable year.
According to Art. 261, Para. 1 of the CITA, a taxable person who does not submit corporate income tax return, does not submit the return in time, does not declare or declares incorrectly data or circumstances resulting in assessing the tax due in a smaller amount or in a wrongful reduction of, retention of or exemption from tax, shall be sanctioned with a penalty in the amount from BGN 500 to 3000.
The annual tax return is submitted by the taxable entities or by their authorized representative.
The tax return is submitted:
- in the office of the National Revenue Agency (NRA) where the taxable entity is registered;
- through a licensed post services operator;
The tax is paid:
- via bank transfer
- to state budget accounts for the NRA territorial directorate where the taxable entity is registered
Deadlines for making the payment:
- Monthly advance payments: for January, February and March – until April 15th, and for the months from, April to December – until the 15th day of the current month; Monthly advance payments – they are made by taxable entities whose net sales income for the previous year exceeds BGN 3 000 000.
- Quarterly advance payments: for the first and second quarter – until the 15th day of the month following the quarter, and for the third quarter – until December 15th. No quarterly advance payment is made for the fourth quarter.
For additional information about declaring and paying the corporate tax in Bulgaria, do not hesitate to contact us.