The corporate tax rate in Bulgaria is 10% and the tax base is the annual profit of the company. The profit is calculated by deducting the total expenses of the company from the total revenues for the financial year which coincides with the calendar year (Jaunary 1 – December 31).
On an annual basis local companies have to file corporate tax declarations and pay the respective corporate tax. In rare cases the corporate tax is due in advance but this does not apply to SMEs.
Revenues and expenses for taxation purposes?
In order to plan your corporate taxes in Bulgaria you must learn to calculate your tax profits. Not all financial operations are consdered when determining the corporate tax base. In terms of revenues those that aren’t taken into cinsideration for tax purposes are expetions, the most important one bieng dividends from other companies based in Bulgaria or the EU. Expenses that are not deductible from the tax base are more often and iclude all expenses that are not directly related to the business as well ass representative costs and some donations to third parties.
Some tax reliefs are available for the corporate taxes of the company. The more important ones include donations to non-profit entities, reliefs for early filing of taxes, and hiring unemployed people.