A Basic Overview on Bulgarian Taxation System!

Bulgaria is known to be a country in EU that offers the best taxation opportunities and schemes for both businesses as well as individuals. The taxes in Bulgaria follow a flat system in which the residents are taxable on their worldwide income. The Bulgarian companies, unlike companies in other parts of the EU, are subject to a flat tax rate of 10%; Also, the personal income tax follows a flat rate of 10%. 

However, the main sources of taxes in Bulgaria are the Corporate Tax, the Withholding Tax, the Alternative taxes, the Personal Income tax, and the Value Added Tax. Like the Taxation, payroll Bulgaria is also known to be simpler than what it is in other parts of the EU. And the best part is that there are professional services available in Bulgaria that help new and existing businesses to handle taxation, payroll, accounting, finance, company registration, legal and likewise. 

If you too wish to set up a business in Bulgaria, then you need to know more about Corporate tax; the following entities are required to pay the Corporate tax;

• Bulgarian legal entities- commercial enterprises
• Bulgarian unincorporated companies;
•  Foreign entities trading in Bulgaria via a branch;
• Foreign unincorporated entities trading in Bulgaria through a branch;

In addition, there are the local taxes that are collected by the municipalities and include- Immovable property tax, Vehicle tax, and Inheritance tax.

A useful advice to entrepreneurs is that by hiring a professional accounting service and outsourcing relevant tasks to the professional team, things can certainly work out in a more streamlined, efficient and fruitful manner.