The corporate tax in Bulgaria is 10%. It is declared with an annual corporate tax declaration till 31.03 every year for the previous one. If the turn over of the company for the previous year is more then 300000 BGN, then the company has to declare and pay advance corporate tax. In April for January, February and March. In July for April, May and June. In December for July, August and September.
Advance Corporate tax prepayments
Advance payments do not:
- Taxable persons whose net income from sales for the previous year does not exceed BGN 300,000;
- The newly established taxable persons for the year of their establishment, with the exception of the newly established ones as a result of transformation under the Commercial Law.
The corporate tax advance is monthly and quarterly. They are determined on the basis of the estimated tax profit of the taxable person for the current year.
Monthly advance payments – are made by taxable persons whose net sales revenue for the previous year exceeded BGN 3,000,000.
Quarterly advance payments – made by taxpayers who are not obliged to make monthly advance payments. In particular, these are persons whose net sales revenues for the previous year are in the range of BGN 300,000.01 to BGN 3,000,000.
Deadlines for payment:
Monthly advance payments – for the months of January, February and March – until April 15, and for the months from April to December – until the 15th of the current month;
Quarterly advance payments – for the first and second quarters – until the 15th of the month following the quarter, and for the third quarter – by 15 December. No advance payment is made for the fourth quarter.
The advance contributions shall be declared with the annual tax return for the previous year.
A declaration shall also be submitted in the case of changes (increase and decrease) of the amount of the advance contributions declared with the annual tax return for the previous year. This is the declaration under Art. 88 of the CITA for changes in the advance installments and under Art. 87a, para. 2 and 3 of the CITA for the initial declaration of quarterly advance payments.
The Advance corporate payments can be changed till 15th December.
Deadlines for declaring: There is no explicit deadline for submitting the declaration for changes in advance payments, but changes in installments can only be used after their submission.
Upon the initial declaration of quarterly advance contributions, the declaration shall be submitted within the time limit for the first advance payment.
The declaration shall be submitted electronically (via the internet with an electronic signature).
Interest due on incorrectly projected advance payments
Interest will be due:
- For the monthly advance contributions, when the annual corporate tax due exceeds by more than 20% the amount of the defined advance payments;
- For quarterly advance payments, when 75% of the annual corporate tax due exceeds by more than 20% the amount of the advance payments
If the company expects to have a profit of BGN 10,000 and determine to make the advance contributions on the basis of that profit. Then the total tax for the year will be 1000 BGN, devided into 4 payments:
– Until 15th ofApril – 250 BGN
– Until 15th of July – 250 BGN
– Until 15th of December – 250 BGN
– The fourth payment is not made, it is paid with the Annual Corporate tax declaration for the next year
– Until December 15 – any adjustment can be made if the expected profit has changed.
– Interest is due if the real profit has a deference in more than 20% of the predicted profit. The is calculated with the Annual Corporate tax declaration of next year.