Distributing dividends in Bulgaria
Making a decision to distribute a dividend is within the competence of the general meeting of the company. Dividend shall be paid only if, according to the adopted annual financial statement, the net value of the property reduced by the dividends to be paid is not less than the amount of the capital of the company. The Reserve Fund and the other funds, which the company obliged to form by statute or statute. The company is obliged to pay to the shareholders the dividend voted by the General Meeting. Within three months of its holding, unless the statutes provide for a longer term. On the amount to be distributed as dividend, the payer of the income shall deduct 5% of the final tax.. Where the recipient of the dividend is a sole trader, a resident natural person and a foreign natural person. The final tax is due on the gross amount of the distributed dividend determined by the decision of the General Meeting.
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