Withholding taxes

Income, generated from a source in Bulgaria and paid to non-resident individuals is treated as taxable income and is taxed with withholding taxes. Such an Income is the following:

1. interest payments
2. income from rent or from other payments, received against providing a property for use
3. technical assistance fees
4. income from management contracts, from participation in management and supervisory bodies of enterprises
5. income from sale, exchange of immovable properties
6. income from sale, exchange or other transfers against payment of shares
7. 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 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.

Call us on 00359 2 4432519 for a VAT advise or e-mail to tax@intrapartners.net.

Intra Partners Accountancy, the Accountants for Tax Advice.