Taxation of Bulgarian companies
Bulgarian companies have a low tax rate: they pay 10% tax earnings (or corporate tax). This 10% rate is the lowest corporate tax rate among EU countries.
Companies whose taxable earnings for a year is less than 300,000 leva (approximately EUR 150,000) do not have to pay a tax down payment (tax advance) for the current financial year.
Companies that have made a taxable earnings of between BGN 300,000 and BGN 3,000,000 (i.e. between EUR 150,000 and EUR 1,500,000) must pay quarterly advances in corporate tax. These advances are calculated on the basis of the previous year's taxable earnings (in principle each quarter 1/4 of the corporate tax due under the previous year).
Companies that have made taxable earnings of more than BGN 3,000,000 (i.e. above EUR 1,500,000) must pay monthly tax advances equal to 1/12 of the corporate tax due under the previous year.
