When is the corporation tax return due in Bulgaria?
The Bulgarian corporate income tax return (Form 1) and final tax payment are both due by 31 March of the year following the tax year. An early payment discount of 1% applies if you file and pay by 31 January. Companies with prior-year tax above BGN 30,000 must also make advance quarterly instalments.
Detailed Explanation
Bulgaria's corporate income tax is filed on a calendar-year basis (1 January to 31 December). The key deadlines and obligations are:
Annual CT return: 31 March
The corporate income tax return, filed using Form 1 (Godishna danachna deklaratsiya), must be submitted electronically to the National Revenue Agency (NRA) by 31 March of the year following the tax year. The final tax payment (the balance after any advance instalments already made) is also due by 31 March.
Form 1 is filed via the NRA's e-portal using a Bulgarian qualified electronic signature (QES). Large companies and companies with turnovers above certain thresholds are legally required to file electronically. Smaller companies may file on paper but electronic filing is strongly encouraged and is the default in practice.
Early-payment discount: 1%
If a company files its Form 1 return and pays the full tax liability by 31 January (two months earlier than the main deadline), it receives a 1% discount on the CIT amount, subject to a maximum discount of BGN 1,000. For companies with modest tax bills, this saving is modest but worth capturing. For a company with BGN 50,000 CIT due, the maximum discount of BGN 1,000 applies (capping the benefit at BGN 1,000).
Annual accounts filing: also 31 March
The annual financial statements (balance sheet, profit and loss account, notes) must be filed with both the NSI (National Statistics Institute) and the BRRA (Bulgarian Registry Agency) by 31 March. These are separate from the NRA tax filing. The NSI filing is via the NSI's online portal; the BRRA filing is via brra.bg. Late filing of accounts with the BRRA incurs fines.
Advance CIT instalment obligations
Companies with a prior-year corporate income tax liability above BGN 30,000 must make advance instalment payments during the year:
- Quarterly instalments: companies whose prior-year CIT was between BGN 30,000 and BGN 300,000 pay quarterly advances. The quarterly amounts are due by 15 April, 15 July, 15 October, and 15 December.
- Monthly instalments: companies whose prior-year CIT exceeded BGN 300,000 pay monthly advances, due by the 15th of each month.
The instalment amount for quarterly payers is calculated as one-fourth of the prior year's CIT. For monthly payers, it is one-twelfth.
The 20% safe harbour rule
If the sum of your advance instalments is at least 80% of the actual current-year CIT liability (i.e., you paid advances equal to at least 80% of what you end up owing), no underpayment interest is charged on the shortfall. This means you can underpay by up to 20% of the actual liability without penalty. This is the safe harbour. If your advances fall below 80% of the actual liability, underpayment interest accrues on the shortfall at 0.05% per day from each instalment due date.
New companies and companies with no prior-year liability
New companies in their first year have no obligation to make advance instalments, because there is no prior-year tax to base them on. Companies that had no CIT liability in the prior year (due to losses or nil profit) are also not required to make advance payments for the current year.
What if my profit is much higher than last year?
If you expect current-year profit to significantly exceed last year's, the instalment amounts based on last year's CIT may leave you with a large balance payment in March. While the 20% safe harbour protects you from interest up to a 20% shortfall, a much larger underpayment will attract interest. You can voluntarily increase advance payments beyond the statutory minimum to manage this.
Source: nra.bg
Real-World Examples
Small company filing by 31 January for the 1% discount
An EOOD has a CIT liability for 2025 of BGN 8,000. The owner files Form 1 and pays by 31 January 2026. The 1% discount is BGN 80. Net payment: BGN 7,920. The discount is modest but the filing is also completed two months early, reducing administrative pressure in March.
Medium company making quarterly advance instalments
An OOD had a 2024 CIT liability of BGN 60,000. In 2025, it must make quarterly advance instalments of BGN 15,000 each, due by 15 April, 15 July, 15 October, and 15 December. Total advances paid: BGN 60,000. The 2025 actual CIT turns out to be BGN 70,000. The company pays the BGN 10,000 balance by 31 March 2026. Because BGN 60,000 of advances represents 85.7% of the BGN 70,000 actual liability (above the 80% safe harbour), no underpayment interest applies.
New company with no instalment obligations
An EOOD is registered in February 2025. It is in its first year of operation and has no prior-year CIT liability. No advance instalments are due during 2025. The first corporate tax return (for the 2025 tax year) is due by 31 March 2026. If the 2025 CIT liability is above BGN 30,000, quarterly advance instalments will apply from 2026 onwards.
Common Mistakes to Avoid
- Missing the 31 March deadline for both the Form 1 return and the final tax payment: late payment of CIT attracts interest at 0.05% per day from the due date.
- Not making advance instalment payments when prior-year CIT exceeded BGN 30,000: the NRA automatically calculates interest on underpaid advances if they fall below the 80% safe harbour.
- Forgetting that annual accounts must also be filed with BOTH the NSI and the BRRA by 31 March, separate from the NRA tax filing: missing these filings incurs separate fines.
- Assuming the 1% early-payment discount applies to the full tax amount: it is capped at BGN 1,000, so for large companies the effective saving is much less than 1% of total CIT.
Frequently Asked Questions
What is the penalty for filing the corporate tax return late in Bulgaria?
Late filing of Form 1 attracts a fine of between BGN 500 and BGN 3,000 for first-time offences. Repeat offences carry higher fines of up to BGN 6,000. Late payment of the tax due also accrues interest at 0.05% per day from the due date of 31 March.
Do I need to make advance corporate tax instalments in my first year of trading?
No. New companies with no prior-year CIT liability are exempt from advance instalments. The instalment obligation arises only when the prior-year CIT exceeds BGN 30,000 (quarterly) or BGN 300,000 (monthly).
What is the 20% safe harbour for advance CIT instalments?
The safe harbour means that if your total advance payments are at least 80% of your actual CIT liability for the year, no underpayment interest is charged on the shortfall. Only the gap between your advances and the final balance is payable in March, interest-free. If advances are below 80% of actual liability, interest accrues on the difference.
Can I file and pay the corporate tax return early to avoid the March rush?
Yes, and if you file and pay by 31 January you receive a 1% discount (capped at BGN 1,000). There is no penalty or disadvantage to early filing. Many Bulgarian accountants recommend filing in January or February to avoid year-end processing pressure.
What is Form 1 (Godishna danachna deklaratsiya)?
Form 1 is the standard Bulgarian annual corporate income tax return. It is filed electronically via the NRA's e-portal and covers the full calendar-year taxable profit calculation, advance instalments paid, deductions, and the final tax balance due. All Bulgarian-resident companies must file it by 31 March.
Practical Tips
- Put 31 January and 31 March in your accounting calendar at the start of every year: the January date for the early discount opportunity, and the March date as the hard deadline for Form 1 and final payment.
- If your profit is growing significantly year-on-year, consider voluntarily increasing your advance instalments above the statutory minimum to avoid a large March balance payment and any potential underpayment interest above the 20% safe harbour.
- Remember that annual accounts must be filed with both the NSI and BRRA by 31 March as well: co-ordinate all three filings (NRA tax return, NSI statistical accounts, BRRA public accounts) at the same time to avoid missing one.
- Use the NRA's e-portal with your QES: paper filing is permitted for small companies but electronic filing is faster, provides immediate confirmation receipts, and reduces manual data-entry errors.
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