Bulgaria Corporate Income Tax

Corporate income tax rate and base

Bulgaria levies a flat 10% corporate income tax on the accounting profit adjusted for tax purposes, one of the lowest rates in the EU. Large multinational groups may face a 15% effective rate under Pillar Two.

• Corporate income tax rate — 10% flat % (Corporate Income Tax Act (ZKPO))
• Tax base — Accounting financial result adjusted for tax purposes (permanent and temporary differences) (Corporate Income Tax Act (ZKPO))
• Pillar Two QDMTT effective rate — 15% effective minimum for in-scope groups (consolidated revenue > EUR 750m) % ((approx — confirm)) (Corporate Income Tax Act (ZKPO) — Pillar Two / QDMTT provisions)
• Alternative tax — maritime shipping — Tonnage-based alternative tax regime available for qualifying maritime operators (Corporate Income Tax Act (ZKPO))
• WHT on dividends — non-residents — 5% (unless reduced by tax treaty) % (Corporate Income Tax Act (ZKPO))
• WHT on dividends — EU/EEA residents — 0% (exempt under domestic law / Parent-Subsidiary Directive) % (Corporate Income Tax Act (ZKPO))
• WHT on interest — non-residents — 10% (unless reduced by tax treaty) % (Corporate Income Tax Act (ZKPO))
• WHT on royalties — non-residents — 10% (unless reduced by tax treaty) % (Corporate Income Tax Act (ZKPO))
• WHT on interest/royalties — EU associated companies — 0% where 25%+ holding maintained for at least 2 years (Interest & Royalties Directive) % (Corporate Income Tax Act (ZKPO))
• Annual CIT return deadline — Between 1 March and 30 June of the year following the tax year (Corporate Income Tax Act (ZKPO))
• CIT payment deadline — 30 June of the year following the tax year (Corporate Income Tax Act (ZKPO))
• Advance installments — monthly — Monthly advance CIT for companies with prior-year net sales revenue above BGN 3,000,000 BGN ((approx — confirm)) (Corporate Income Tax Act (ZKPO))
• Advance installments — quarterly — Quarterly advance CIT for companies with prior-year net sales revenue between BGN 300,000 and BGN 3,000,000 BGN ((approx — confirm)) (Corporate Income Tax Act (ZKPO))
• Advance installments — exemption — No advance payments for companies with prior-year net sales revenue below BGN 300,000 BGN ((approx — confirm)) (Corporate Income Tax Act (ZKPO))