Bulgaria, a real attraction in the European Union

dgsrtehsg 10There are two levels for collecting taxes in Bulgaria: state and local. It´s been said that the most important are collected on federal level, including taxes related to security, incomes, value added and corporate. On the other hand, local level includes property taxes and other fees.

It is important to say that all profits earned in Bulgaria are taxed on a rate of 10 % approximately; and benefits obtained by employment are subject to several contributions for social security. It is supposed that employees pay 12,9 % and employers a 17,9 %.

Bulgaria´s Corporate Tax (1995-2016)
Corporate Tax in this country reaches the 10 %. From 1995 till last year, it average was 20,39; getting its highest point in 1997 (with the 40,20 %) and the lowest in 2007 (10 %). Meanwhile, value-added tax applied at a rate of 20 % on all services and goods.

The National Revenue Agency (NRA) is the one that manage state taxes, and the power to collect them (all taxes, imposts, duties and excises) lays over the National Assembly.

Tax law

Like any other country, Bulgaria tax legislation conceives all the principles for functioning and establishment of tax system. This regulatory frame imposes taxes for both, individuals and legal entities. There are three groups of taxes to distinct: local taxes and fees (succession tax), indirect (value-added tax) and direct taxes (income tax, corporate tax).

The value-added tax

In Bulgarian tax law, the value-added tax (VAT) is regulated by the Value Added Tax Act (VATA). This is an indirect tax monthly payable for the supplies of services or goods in an intra-European Union (EU) acquisition.

As in the rest of the EU countries, in Bulgaria the VAT model follows the one imposed in the zone. It means that personal expenses are taxable by applying the invoice method. According to it, stages of the production of services or goods are chargeable with this tax, so as the final prices of them.

Finally, a taxable person is anyone who develops an economic activity —whatever its results or purposes been —, as well as anyone who performs intra-European Union supplies of new vehicles of transportation.