Personal income tax in Bulgaria
Income tax in Bulgaria is fixed at a rate of 10%. Individuals employed under a labor contract who don’t have other taxable incomes with local origin don’t need to take care of their own taxes. The employer is obligated to deduct the income tax from the employee’s salary and deposit it at the National revenue agency.
Freelancers on the other handle their own personal income tax. The most important parameter here is the taxable income. The income subject to taxation is only part of the personal income. The general rule is that only 80% of the income is taxed but there are exceptions like income from agriculture (40% taxable income) and income from licensing of intellectual property (60% taxable income).
For the purpose of taxation company managers can be considered either employees or freelancers.
Rights and obligations of shareholders and managers
Changes in the company
Trade representation office
Taxes for doing business in Bulgaria
Opening of a Bulgarian Trade Representative Office (TRO)
Liquidation of a Bulgarian company
Opening a company bank account in Bulgaria
Change to the company’s capital
Change of the company’s name