Delchev & Partners will provide advice on any tax issue including:
Corporate Income Tax
Bulgarian corporate income tax is calculated on the basis on the company's accounting result adjusted for tax purposes.The complexity of Bulgarian corporate taxation is due to the introduction of accounting standards very closely following international ones. International accounting standards will be mandatory for all Bulgarian companies from 1 January 2005.
Withholding Tax
Bulgarian withholding taxation arises upon payment of certain cross-border incomes by a Bulgarian company to a foreign beneficiary e.g. payment of dividends, royalties, interest, technical services, etc. The withholding tax is often overlooked by investors, which may create serious taxation issues.
Local Taxes and Fees
Most of the local taxes and fees are associated with the ownership or transfer of ownership of real estate.
VAT
Bulgaria introduced VAT in 1994. Presently VAT is based on the Value Added Tax Act in effect from 1 January 1999.
A new VAT Act comes into force on January 1, 2007 upon Bulgaria's accession the EU.
Personal Income Tax
The modern Bulgarian personal income taxation was introduced by the Personal Income Tax Act effective from 1 January 1998. Bulgaria has rather low rates of personal income taxes, so generally it might be advantageous for certain foreign individuals to become Bulgarian tax residents.
