What is Advance Corporate Tax Payments?
Bulgarian companies pay Corporate Income Tax in quarterly advance instalments based on prior-year profit. Due dates: 15 April, 15 July, 15 October, 15 December. Final balance reconciles in the annual CT return by 31 March.
Current Rate (Quarterly advance payments throughout the calendar year)
Computed as ¼ of prior year CT liability per quarter
Example
Acme OOD with prior year CT of BGN 40,000 pays BGN 10,000 advance on each of the four quarterly dates. Year-end annual return reconciles actual profit to advance payments.
How Advance Corporate Tax Payments works in Bulgaria
The Bulgarian advance CT system requires companies to prepay their estimated Corporate Income Tax liability in quarterly instalments throughout the year, similar to the UK's quarterly instalment payments (QIPs) and Ireland's preliminary tax. The annual CT return then reconciles the advance payments against the actual liability.
**Who must pay advance CT**
Companies with prior year taxable profit are generally required to make advances. Exemptions: - Companies with prior year CT liability under BGN 3,000 are exempt from advance payments - Companies in their first year of operation are exempt
**Calculation options**
**Prior year basis (default):** Advance payment = prior year CT liability / 4, paid quarterly. This is the simplest approach and avoids under-payment penalties if the current year turns out higher.
**Current year basis (optional):** Company estimates current year profit and calculates advances on that basis. Better if current year profit is significantly lower than prior year (avoids overpaying). Requires submitting a declaration to the NRA by 15 April of the current year.
**Quarterly due dates**
- Q1: 15 April - Q2: 15 July - Q3: 15 October - Q4: 15 December (not 28 December, which is the date the final return balance may be paid)
Note: Q4 is due 15 December, not at year-end. This means the final instalment for calendar year 2025 is due 15 December 2025, before the year has ended.
**Penalties for underpayment**
If actual CT is more than 20% above advance payments made, the underpaid portion accrues interest at the NRA base rate plus 10 percentage points (approximately 13-15% per annum in 2024-25). Staying within 20% of actual liability avoids interest charges.
**Final reconciliation**
The annual CT return (Form 1010A) is due 31 March following year-end. The return computes actual taxable income and CT. If advances exceed actual CT, the overpayment can be offset against future NRA obligations or refunded. If under-paid, the balance plus any interest is due with the return.
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