Europe, Middle East and Africa Tax Facts 2012 - Crowe Horwath ...

BULGARIA
INCOME TAX RATES 2012
Individuals
6
Taxable Income (BGN) Tax Rate (%)
All income – fl at rate 10
Companies
Taxable Income (BGN) Tax Rate (%)
All income – fl at rate 10
VALUE ADDED TAX (VAT)
Standard rate - 20%
Reduced rate - 9% for accommodation provided by hotels and similar establishments
Zero rate – export, international transport of goods and passengers, other supplies
listed in the VAT Act.
CAPITAL GAINS TAX (CGT)
Individuals
Tax rate 10% - gains from immovable property, sale of fi nancial assets.
Exempt capital gains – disposal of shares quoted in a regulated stock market in the EU/
EEA, one residential property per year (for BG residents and EU/EEA nationals), up to
two immovable properties per year (at least fi ve years holding).
Companies
Tax rate 10% - gains from immovable property, sale of fi nancial assets.
Gains or losses from the disposal of shares quoted in a regulated stock market in the
EU/EEA are not taxable.
LOSSES
Loss set-off is possible. The losses can be carried forward for a maximum of fi ve years.
TREATY NETWORK
68 countries.
WITHHOLDING TAX
Dividends: exempt for companies resident in Bulgaria, EU or EEA
5% elsewhere unless reduced with relevant treaty
Interest: 10% unless reduced with relevant treaty; 5% (following the provisions of
EC Interest and Royalties Directive (2003/49/EC)
Royalties: 10% unless reduced with relevant treaty; 5% (following the provisions of
EC Interest and Royalties Directive (2003/49/EC)
CONTACT:
Georgio Kandilarov
georgio.kandilarov@tpa-horwath.bg
TPA Horwath OOD
28, Todor Alexandrov Bld., fl . 5
Sofi a BG - 1000
Bulgaria
Tel: +359 2 981 66 45 Fax: +359 2 981 66 46
www.tpa-horwath.com
Europe, Middle East and Africa Tax Facts 2012
Last updated: May 2012