What is Corporate Income Tax (Bulgaria)?
Bulgarian Corporate Income Tax is a flat 10% on company profits — the lowest in the European Union (tied with Hungary at 9%). Applied uniformly to all Bulgarian-resident companies regardless of size. Filed annually via Form 1010A with the National Revenue Agency (NRA).
Current Rate (Calendar year (1 January – 31 December))
10% flat
Example
A Bulgarian OOD with BGN 500,000 taxable profit pays BGN 50,000 (€25,565) Corporate Income Tax. CT return filed by 31 March of the following year via the NRA portal.
How Corporate Income Tax (Bulgaria) works in Bulgaria
Bulgaria's flat 10% rate is one of its main attractions for founders and entrepreneurs. There is no separate state, local or surtax — the 10% is the headline number and the all-in number for company tax.
The corresponding personal income tax is also a flat 10%, and dividend withholding is 5% — making the combined effective burden for a founder distributing all profit approximately 14.5%, well below most EU and OECD jurisdictions.
Bulgarian Corporate Income Tax is always filed on a calendar year basis — there is no option to elect a non-calendar accounting period for tax purposes (unlike most EU countries).
Related terms
Bulgarian VAT is a 20% standard rate (with a 9% reduced rate on books, baby food and tourism services). Mandatory registration at BGN 100,000 (€51,000) annual turnover. Returns filed monthly via the NRA portal, due by the 14th of the following month.
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.
An OOD (Ограничена отговорност дружество) is a Bulgarian limited liability company with two or more shareholders. Minimum share capital BGN 2 (€1). Owners are not personally liable for company debts beyond their share capital. Most common entity type for SMEs in Bulgaria.
Bulgarian companies must prepare annual financial statements under Bulgarian Accounting Standards (or IFRS for larger entities) and file them with the Trade Register by 30 September following the financial year-end.
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