Can I Claim Depreciation on Plant & Equipment as a Business Expense in Bulgaria?
Yes, tax depreciation under Bulgarian CITA follows specific tax depreciation rates by asset category. Computers and software: 50% straight-line. Vehicles: 25%. Buildings: 4%. Furniture: 15%.
Finn does your books in Bulgaria
AccountsOS keeps the books for Bulgaria businesses, tracks tax deadlines and handles expenses, in plain English. Ask Finn about yours, no signup needed.
What National Revenue Agency (NRA / НАП) says
Article 55 CITA prescribes maximum tax depreciation rates by asset category. Tax depreciation may differ from accounting depreciation, and the difference adjusts taxable profit each year in the annual return filed under Article 92. Corporate profit is taxed at a flat 10%. Tax depreciation applies to fixed assets that are put into use and recorded in the register.
When you can claim
- Computers and software at 50% straight-line over 2 years
- Office furniture at 15%
- Vehicles at 25%
- Manufacturing equipment, typically 30%
- Buildings at 4%, with the land value excluded
When you cannot claim
- Land, which is not depreciable
- Personal-use assets
- Depreciation beyond the cost of the asset
- Depreciation above the maximum annual tax rate for the asset category
- Assets with no purchase invoice
Good to know
Pro tip: Keep a fixed asset register with the purchase date, cost, tax category and rate for every asset. Tax depreciation starts from the month the asset is put into use. If the year shows a tax loss, the NRA allows it to be carried forward for the next 5 years and used in order, only up to the positive tax result of each year.
Important: Tax depreciation is calculated separately from accounting depreciation, and the difference adjusts the tax result in the annual return. A tax loss can be carried forward for 5 years under the NRA rules, so a large first-year write-off does not disappear if profit is low. Record every disposal, because the asset leaves the register and the remaining tax value is dealt with in the return.
Related expenses
Stop guessing what you can claim in Bulgaria
AccountsOS automatically categorises expenses with National Revenue Agency (NRA / НАП)-aware rules and tells you exactly what is claimable.
Try Free