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About Bulgaria |  Advantages Bulgaria |  Accounting and Audit |  Domicile Tax Residency
 


 

Accounting and Audit for a Company in Bulgaria



Corporate Taxation

- Tax Rate: Bulgarian companies are subject to a flat corporate tax rate of 10% on their worldwide income.
- Payment Deadline: Corporate tax must be paid annually by March 31st of the following financial year.
- Interest on Late Payment: Companies failing to pay on time may face up to 12% monthly interest.

Value Added Tax (VAT)

- Standard Rate: 20% on most goods and services.
- Reduced Rates: 9% on hotel accommodation, 0% on intra-community and international transport.
- Registration Threshold: Companies must register for VAT if their revenue exceeds 25,000 EUR per month.
- Filing Deadline: VAT returns must be filed by the 14th day of each month.

Withholding Taxes

- EEA (Including Bulgaria) to EEA: No withholding tax on dividends.
- EEA to Non-EEA: 5% withholding tax on dividends, unless exempt under a Double Taxation Agreement.
- Royalties and Interest: 10% withholding tax to EEA non-residents, unless exempt under a Double Taxation Agreement.

Financial Reporting and Compliance

- Auditing: Bulgarian companies must have their financial statements audited by a certified accountant.
- Filing Deadlines: Financial statements must be submitted annually by March 31st to the Trade Register.
- Documentation: Various documents, including articles of association and proof of revenue, must be submitted to the tax office.

Employment and Labor Regulations

- Minimum Wage: As of July 2020, the minimum wage is 311.90 EUR per month.
- Employment Contracts: Contracts should be registered at the National Revenue Agency.
- Leave and Benefits: Employees are entitled to a minimum of 20 days of annual paid leave, plus public holidays.
- Sick Leave: Employer covers 70% of wages for the first three days of sick leave; thereafter, it is covered by the National Social Security Institute.

Other Regulations

- Property Ownership: Non-EEA entities need to register a company in Bulgaria to obtain property, whereas EEA entities do not face additional conditions.
- Intellectual Property: Foreign businesses can obtain protection for patents, trademarks, etc., similar to Bulgarian nationals.

Important Deadlines

- Monthly Deadlines: Various deadlines include submission of accounting documents by the 5th, VAT declaration by the 14th, and insurance payments by the 25th of each month.
- Yearly Deadlines: Key deadlines include corporate tax filing by March 31st and submission of annual financial statements by July 31st.
This summary covers the main aspects of accounting, taxation, employment, and other regulatory requirements for businesses operating in Bulgaria.

We offer auditing services for local or foreign corporate clients in Bulgaria, voluntary and statutory audits of annual, accounts and consolidated financial statements in compliance with the international standards on auditing (ISA), reviews of financial statements.

According to law, most companies in Bulgaria must submit annual financial statements. These data are reported in electronic form or in paper. Depending on the company’s size and nature of business the law requires different amounts of data to be published.

Reporting of financial statements in Bulgaria is subject to the Accounting Act, Trading Act and other regulations. The fees for auditing or accounting depending on the documents required for submission and the turnover and starting from 250 Euro. Please contact our team to get your quote free of charge.
 
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