Bulgarian Taxes

Intra Partners tax accountants in Bulgaria is specialized in providing advisory services for personal and corporate taxation, financial and strategic planning for private individuals, domestic and foreign investors, guaranteeing a full coverage of Bulgarian and EU tax legislation.We offer a range of services to help you minimize your corporate tax exposure and relieve you of the administrative burden of complying with tax legislation in Bulgaria. We can save you a lot of time, worry, and money by handling and acting on your behalf in discussions with the tax authorities and determining the most tax effective structure for your business.

Value Added Tax

Value added tax is one of the most complex and onerous tax regimes in Bulgaria imposed on business - so complex that many businesses inadvertently overpay or underpay VAT.

The ever widening scope of VAT, the constant stream of detailed changes to the regulations, and the ever growing demands of National Revenue Agency in Bulgaria call for a trained professional eye to ensure that you do not fall foul of the regulations and do not pay the tax office more than you need to.

We believe there is no substitute for knowledge and experience and our team of highly qualified advisers can guide you through the issues whether your query relates to a single transaction or a more complex business deal.

In addition, the day to day VAT compliance in Bulgaria requires careful management and, as the rules become more complex, it can saddle your business with considerable administrative burdens.

We provide an efficient cost effective VAT service, which includes:

  • Assistance with VAT registration
  • Advice on VAT planning and administration
  • Use of the most appropriate VAT scheme
  • VAT control and reconciliation
  • Completing VAT returns
  • VAT planning in order minimize future problems with tax authorities
  • Negotiating with tax authorities in disputes and representing before VAT tribunals
  • EU Intra community VAT rules

Corporate Income Tax

Corporation tax represents a substantial part of your trading costs. Moreover, the management of tax compliance has become an increasingly complex and time consuming task in Bulgaria. With increased reporting obligations, ever changing legislation and harsher penalties for non-compliance it is becoming more important for companies to ensure that they meet their obligations to file timely and accurate tax returns.

Our clients range from start-up companies, liability limited companies to large groups. We can take care of all your tax compliance work thereby allowing you to focus on business requirements.

We are specialist Tax Advisors in Bulgaria and offer a range of services to help you minimize your corporate tax exposure and relieve you of the administrative burden of complying with tax legislation.

These include:

  • Determining the most tax effective structure for your business
  • Taking full advantage of tax opportunities and relief’s
  • Achieving the optimum revenue tax treatment
  • Making the most of tax opportunities specific to your industry
  • Acting on your behalf in discussions with the tax authorities
  • Preparation and submission of corporate tax computations and returns
  • Preparation of quarterly and annually tax calculations
  • Dealing with National Revenue Agency correspondence in Bulgaria
  • Preparation of all relevant claims to National revenue Agency in Bulgaria

Personal Income Tax

We are specialists in personal income tax and national insurance contribution in Bulgaria. We have the expertise and software to take the headache out of the form filling and compliance aspect of Self Assessment. We can provide you with practical advice on personal tax positions and opportunities available to you. We can complete tax returns, calculate any tax liability and social security’s and advises you on exactly how much to pay.

Today, more and more emphasis is being put on taxpayers in Bulgaria and everyone who is subject to taxation needs professional advice and support if they are to optimize their tax position and ensure they meet the compliance requirements. Our specialist tax team can provide you with year-round advice on all aspects of personal taxation and National Insurance Contributions in Bulgaria.

Tax returns are issued people with complex tax affairs, but also to individuals who receive:

  • Income from employment( employment contract)
  • Income from self-employment or from a partnership business
  • Rent or other income from land or property
  • Income from overseas
  • Other income which is received gross, i.e. without tax deducted at the source.

At Intra Partners we use specialised software to:

  • Complete your tax return
  • Calculate your final tax liability
  • File the return online

By giving you a competitive price and providing that you supply the relevant information within a reasonable time scale, we can take the worry away when it comes to self assessment tax returns, allowing you to concentrate on running your business.

Withholding taxes

Any Income, generated from a source in Bulgaria and paid to non tax resident individuals or companies is subject of withholding taxes.

Withholding taxes is applicable for the following types of income:

  • Interest and royalty payments
  • Income from rent or from other payments, received against providing a property for use
  • Technical assistance fees
  • Income from management contracts, from participation in management and supervisory bodies of enterprises
  • Income from sale, exchange of immovable properties
  • Income from sale, exchange or other transfers against payment of shares
  • Compensation instruments, other investment assets

The tax rate in Bulgaria for that kind of income is 10 percent. The tax shall be withheld and paid by the enterprises which are payers of the income and this kind of tax is called as withholding tax.

Subject to final tax at the source are also the incomes from dividends and liquidation shares, paid to a resident individual from source inside or outside Bulgaria or paid to a non-resident individual and which is from source inside Bulgaria. The tax rate for dividends income is 5 percent.

Local Taxes

Local taxes in Bulgaria are regulated by the Local Taxes and Fees Act and the most important is the Immovable Property Tax, Transfer Taxes and Inheritance tax.

  • Immovable Property Tax
  • In Bulgaria this tax relates to owning immovable property. Immovable property tax is levied on buildings and plots of land. Some immovable property, such as agricultural land and forest land are not subject to this tax.The tax liable persons in Bulgaria are the owners or the holders of limited real rights over immovable property.

  • Transfer taxes
  • This kind of tax in Bulgaria is connected with the fact of transferring ownership or limited real rights over properties. Transfer tax shall be levied for acquisition of any properties by donation and for acquisition against payment of immovable properties, limited real rights and motor vehicles, registered in Bulgaria.The tax rate for acquisition against payment is determined by every municipality in Bulgaria independently. The tax base is defined as the higher of: (i) the tax valuation; or (ii) the sale price for immovable properties and the insurance valuation - for motor vehicles.The tax rate for donation is determined by every municipality independently. The tax base is defined as the asset value of the transferred properties.

  • Inheritance tax
  • Inheritance tax in Bulgaria shall be levied in relation to the properties of Bulgarian citizens in the country or abroad, inherited by law or will, and the properties of foreign citizens in Bulgaria inherited by law or will. Inheritance tax shall be paid by the heirs by law or will. Inheritance tax shall not be paid by the surviving spouse and by lineal heirs without restriction. The inheritance tax rate in Bulgaria is defined by every municipality independently.

Import and Export Taxes

If your business involve import or export of goods, we can provide consultancy services concerning the application of tax and customs legislation on import and export of goods within the Community, which cover the following:

  • Customs Tariff - Tariff classification in the Combined Nomenclature
  • EU trade policy
  • Tariff measures: duties "third party" and Preferential duty
  • Non-tariff measures
  • Customs value
  • Custom tariff quotas
  • Agricultural measures
  • TARIC Consultations
  • Reglament (EC) № 1186/2009 of 16 November 2009 establishing of Community system for reliefs from customs duty / duty free /
  • Declaring procedures
  • Custom status and transit of goods
  • Customs state and releasing the goods for free circulation
  • Applying the provisions relating to exports
  • Re-export
  • Warehousing
  • Processing under customs control
  • Temporary import
  • Tax legislation on import and export of goods
  • Custom and duties obligation
  • Reclaim and remission of customs duties

Call us on 00359 2 4432519 or e-mail to info@intrapartners.net.