# What is Advance Corporate Tax Payments?

Country: Bulgaria

Bulgarian companies pay Corporate Income Tax in quarterly advance instalments based on prior-year profit. Due dates: 15 April, 15 July and 1 December, with no Q4 instalment. Final balance reconciles in the annual CT return, paid by 30 June.

## 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 €40,000 pays €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 €1,534 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: 1 December
- Q4: no instalment

Note: the last quarterly instalment, for Q3, is due on 1 December, 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 under Article 92 CITA is filed between 1 March and 30 June following year-end, and the balance is paid by 30 June. 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.

Source: https://nra.bg/en/businesses/taxes/corporate-tax

## Related terms

- [Corporate Income Tax (Bulgaria)](https://accounts-os.com/bg/glossary/corporate-income-tax-bulgaria)