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Corporate Tax Compliance & Advisory in Bulgaria
Bulgaria charges a flat 10% on corporate profit — one of the lowest rates in the European Union, and the reason most of our clients incorporated here. The rate is simple. What is not simple is the tax base: which expenses survive scrutiny, how related-party transactions are priced, and when withholding obligations are triggered on payments abroad.
The 10% rate, and what sits underneath it
Corporate income tax is levied at 10% of taxable profit, which is accounting profit adjusted by the Corporate Income Tax Act. Those adjustments are where money is won and lost: entertainment costs carry a separate expense tax, some provisions are not deductible until realised, and expenses without proper documentation are simply disallowed.
Dividends distributed to individuals are taxed at 5% withholding. Distributions to EU parent companies are generally exempt under the Parent-Subsidiary Directive, provided the holding conditions are met and documented — which they often are not.
Deadlines you cannot miss
The annual corporate tax return is filed between 1 March and 30 June of the following year, with the tax payable by the same 30 June deadline. Companies above the turnover threshold must also pay advance instalments during the year — monthly or quarterly depending on prior-year revenue — and underpaying them triggers interest.
We calculate advance instalments deliberately rather than mechanically. Overpaying ties up your cash for a year; underpaying costs interest. The correct figure depends on where your year is actually heading, which is a conversation, not a formula.
Cross-border questions we handle often
Payments of interest, royalties, management fees or service fees to non-residents can trigger Bulgarian withholding tax, often reduced or eliminated by one of Bulgaria's double tax treaties — but only if the treaty relief is claimed correctly and in advance.
If you are a foreign owner drawing income from a Bulgarian company while living elsewhere, tax residency becomes the central question. We map where you are actually taxable before you structure the payments, not after.
Frequently asked questions
Is corporate tax in Bulgaria really 10%?
Yes — 10% flat on taxable profit, with no progressive brackets and no separate municipal or regional corporate surcharge. The effective rate can differ from 10% because some accounting expenses are disallowed for tax purposes, which raises the taxable base above your accounting profit.
When is the Bulgarian corporate tax return due?
The return is filed between 1 March and 30 June of the year following the tax year, and the tax is payable by 30 June. Annual financial statements are separately published in the Commercial Register by 30 September.
How are dividends from a Bulgarian company taxed?
Dividends paid to individuals are subject to 5% withholding tax in Bulgaria. Dividends paid to qualifying EU corporate shareholders are generally exempt. Your own country may still tax the dividend when it arrives, depending on the applicable treaty and your personal residency.
Will the National Revenue Agency audit a small company?
Routine desk checks are common — mismatched VAT figures, unusual expense ratios or large refund claims all attract attention. Full audits of small companies are less frequent, but they do happen, and the outcome depends almost entirely on whether your documentation was in order before the request arrived.
Related services
Accounting & bookkeeping
Monthly bookkeeping, ledgers and statutory reporting — handled in English, on a fixed fee.
VAT registration & filings
Registration, monthly returns, VIES and Intrastat — including voluntary registration strategy.
Annual statements
Year-end accounts prepared, filed and published in the Commercial Register on time.
Free consultation
Questions about corporate tax?
Book a free 30-minute call. We will look at your situation, tell you what is required and what it costs. No obligation, and no pitch if you do not need us.
30 minutes · English and Bulgarian spoken · no obligation