We offer the following services:
- Statutory bookkeeping
- Preparation and submission of monthly VAT returns
- Management reporting
- Registration with the Tax Authorities and the Commercial Register
- Year-end Corporate Income Tax reporting
- Calculation and disbursement of payroll and all payroll taxes
- Provision of nominee and domiciliary services
BUSINESS SET UP
In Bulgaria, if you require a company, you may incorporate either:
(i) A Limited Liability Company or
(ii) A Joint-Stock Company
Both business structures have the legal requirement to keep full and accurate accounting records.
The main difference between the structures is that Joint-Stock Companies have a higher capital requirement, a minimum equivalent capital of € 25,000, compared to a minimum capital of just € 1 for a Limited Liability Company.
All Joint-Stock Companies require an audit, however Limited Liability Companies only require an audit if they exceed certain criteria for turnover, net assets and number of employees.
MAIN TAXES IN BULGARIA
In Bulgaria, companies and self-employed individuals are required to submit annual Corporate Income Tax and annual Personal Income Tax returns respectively and to pay the taxes due every calendar year. For individuals working under employment contracts, their employer is obliged to pay Personal Income Tax on employment contracts on a monthly basis.
Additionally there is VAT on goods consumed and taxes applied to other kinds of income including Capital Gains and Inheritances. A summary of the key features of the main taxes follows.
CORPORATE INCOME TAX
This is based on the profits of the business for the calendar year and should be submitted and paid by 31st March of the following year.
Taxable profits are taxed at a flat rate of 10%, with certain costs excluded from the calculation, including depreciation, entertainment and travel costs. Capital allowances are allowed on qualifying assets.
Investment and interest income, as well as gains on disposals of assets, are included in this calculation.
PERSONAL INCOME TAX & SOCIAL SECURITY
Personal income is taxed at 10% of the gross income, after the deduction of employee’s social security contributions.
Social security is taxed at approx 12.1% for the employee and 17% for the employer. The contributions are capped to the first €1,000 (approx.) earned each month and amounts above this do not attract social security.
VAT
All VAT registered entities must charge customers VAT on the sale of all goods and services at a rate of 20%.
A business is obliged to register for VAT if the turnover in a calendar year exceeds approx. €25,000 (50,000 BGN), but may voluntarily register at any time.
VAT returns need to be submitted, along with payment, on a monthly basis by the 14th of the following month.
CAPITAL GAINS TAX
This is due on any sale of assets and other items of a capital nature although there are many exemptions, including the sale of publicly-traded shares
Enquire About Our Accountancy & Tax Services
For further information, please contact us on +44 (0)208 421 7474 or fill in the form below: