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 under Article 92 of the Corporate Income Tax Act with the National Revenue Agency (NRA).
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Current Rate (Calendar year (1 January – 31 December))
10% flat
Example
A Bulgarian OOD with €500,000 taxable profit pays €50,000 Corporate Income Tax. CT return filed between 1 March and 30 June of the following year via the NRA portal, with the tax paid by 30 June.
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 €51,130 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 and 1 December, with no Q4 instalment. Final balance reconciles in the annual CT return, paid by 30 June.
An OOD (Ограничена отговорност дружество) is a Bulgarian limited liability company with two or more shareholders. Minimum share capital €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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