Bulgarian Tax Calculator: here is why you need help

Bulgaria has been referred to as a tax haven in recent years. This is due to a simple tax system, straightforward and without loopholes and thanks to a flat rate of 10% on corporate income. 

However, Bulgaria has also implemented certain rules and regulations that have promoted a positive business environment, making this European country a desirable destination for companies looking for a more favorable tax scheme, still benefiting from access to the European market and hoping to grow their companies and maximize their profits.

Company registration in Bulgaria is easier than in most other countries. The process remains flexible, quick, and efficient, which is part of the appeal Bulgaria offers to companies looking into settling there.

Can I do my own taxes in Bulgaria?

When talking of the tax system in Bulgaria and the flat corporate tax rate of 10%, it may sound like it’s something that can be done by anyone.

However, since we are talking about foreign companies, and possibly a non-resident looking into starting a company in Bulgaria, the most likely scenario is that this person may not be familiar with the tax system, the legal requirements, or even the language. 

Finding an accountant in Bulgaria, or even an accounting company in Bulgaria, may be your best bet as a company owner, especially if you’re looking into registering a Ltd company in Bulgaria, registering your own company, buying a shelf company, or simply investing wisely. But before we go into why you need help, let’s talk about taxes in Bulgaria in detail.

• Read also: Bulgaria Property Tax: how much is it and how it works

Taxes in Bulgaria

There are different kinds of taxes in Bulgaria, mostly classified as direct or indirect taxes. A case of the first would be income tax for individuals or corporate tax for companies. An example of the latter would be Value Added Tax or VAT.  

Let’s talk about the different taxes in Bulgaria.

Corporate tax

Companies in Bulgaria only pay a flat rate of 10% on all corporate income after deductions. This is a yearly payment that applies to Bulgarian-based companies, as well as foreign-owned companies. 

The corporate tax 10% rate is what has made Bulgaria such an attractive option for companies looking to take advantage of this tax scheme. 

However, thanks to double-taxation treaties Bulgaria has in place, foreign companies with a branch in Bulgaria, only pay corporate tax on the income generated within Bulgaria. 

Income tax

Income tax is only applicable to Bulgarian residents and it is also a flat rate of 10% on all personal income generated. There are no tax levels and the same rate is valid for all income levels on profit generated in or outside of Bulgaria by individuals. 

The same is true for self-employment taxation in Bulgaria. 

Value Added Tax or VAT

VAT is an indirect tax that applies to all products or services sold or offered within Bulgaria or in other European countries, with some exceptions.

In Bulgaria, in most cases VAT is 20%. This is a tax paid by the customer in an indirect manner, as it’s the provider company the one paying it to the VAT agency after balancing out VAT monthly, which may result in a VAT refund. 

• Read also: Bulgarian Road Tax: Info and Tips

Bulgarian Tax Calculator: a solution?

Talking about a Tax calculator may sound like a solution. After all, maybe you can do your own taxes.

The truth is that it will never replace the excellence of accounting services Bulgaria can offer, not only adding more work to those in charge of the company but also risking making mistakes that will endanger the profitability of your corporation and keep it from achieving its potential. 

So, this is why you need help. 

A tax calculator can be a useful tool to estimate how much taxes you’ll be paying with your Bulgarian registered company, but it will never replace the services of a tax advisor Bulgaria.

Find an accountant in Bulgaria

Opting for the services of an accountant in Bulgaria is, without doubt, the wiser decision for whoever is looking into opening a company in Bulgaria. 

This will allow you to focus on your business, leaving the accountancy to the experts. And if it is experts you are looking for, the answer is right here. 

Accountancy Bulgaria, an accounting company with over 30 years of experience, can offer all the services your company needs. From bookkeeping, tax reports, audits, payroll, consultancy, and even company registration. Contact them for a free consultation and get ready to leave the financial growth of your business to them.