Yes — Fully Claimable
Can I Claim Employee Salaries & Social Insurance as a Business Expense in Bulgaria?
Yes — employee gross salaries and the employer's portion of social insurance (~19%) are fully deductible against Bulgarian Corporate Income Tax. Personal income tax (10%) and employee social insurance are deducted from gross at source.
Typical claim: Variable — typically the largest single expense
What National Revenue Agency (NRA / НАП) says
CITA allows deduction of salaries, employer social security and health insurance contributions, and other ordinary employment costs. Director compensation paid through formal payroll is fully deductible.
When you can claim
- Gross salary paid via payroll
- Employer's social insurance contributions (~19%)
- Employer's portion of supplementary pension contributions
- Statutory benefits (annual leave, sick pay employer portion)
When you cannot claim
- Excessive director compensation deemed disguised distribution
- Personal expenses of employees passed through payroll
- Wages paid to undeclared/informal workers (severe penalties)
Good to know
Pro tip: Use the official monthly Form 1 (declaration of insured persons) and Form 6 (declaration of contributions) to NRA — required by the 25th of the following month.
Related expenses
Stop guessing what you can claim in Bulgaria
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