Bulgaria tax news 2025
February 2025Here's a summary of the most important tax news so far:
1. Introduction of SAF-T (Standard Audit File for Tax)
What it is: Bulgaria is introducing SAF-T, an international standard for the electronic exchange of tax data between taxpayers and tax authorities.
This is a significant step towards digitalization of tax administration.
When it takes effect: The SAF-T requirement comes into force on January 1, 2026, for large enterprises.
By 2030, it will apply to almost all enterprises, with minor exceptions.
Who it affects: Initially, large enterprises will be required to submit SAF-T files.
Over time, the scope will expand to include most businesses.
What businesses need to do: Businesses should prepare for the SAF-T implementation by assessing their systems, data, and processes.
They may need to invest in new software or technology to comply with the new requirements.
2. No Major Tax Rate Changes Expected (for now)
Current rates retained: Based on current information, no significant changes to major tax rates (VAT, corporate income tax, individual income tax) are expected in 2025.
Focus on compliance: The government's focus seems to be on improving tax collection and compliance, rather than introducing major tax rate changes.
3. Potential Updates to VAT Regulations
Ongoing adjustments: VAT regulations are subject to periodic updates and amendments.
Businesses should stay informed about any changes to VAT rules, particularly regarding reduced rates, exemptions, and reporting requirements.
Specific sectors: There might be specific updates related to VAT in certain sectors, such as tourism or agriculture.
It's important to monitor news and announcements relevant to your industry.
4. Focus on Digitalization
Continued push: The Bulgarian tax authorities are likely to continue their push towards digitalization of tax processes.
This includes promoting electronic filing of tax returns, online payments, and other digital initiatives.
Benefits: Digitalization aims to simplify tax compliance, reduce administrative burden, and improve efficiency for both taxpayers and the tax authorities.
5. Monitoring EU Tax Developments
EU directives: Bulgaria, as an EU member, needs to align its tax laws with EU directives.
Businesses should be aware of any new EU tax regulations that may impact their operations in Bulgaria.
Where to Stay Informed:
National Revenue Agency (NRA) website: The NRA website is the primary source for official tax information and announcements.
Ministry of Finance website: The Ministry of Finance website provides information on tax policy and legislation.
Reputable news sources: Follow tax and business news from reliable sources that cover developments in Bulgaria.
Tax and legal firms: Consulting firms specializing in Bulgarian tax law often publish updates and analyses on tax law changes.
Key takeaway:
The most significant tax news in Bulgaria for 2025 is the introduction of SAF-T, which will require businesses to adapt their systems and processes for electronic tax data exchange.
While no major tax rate changes are currently expected, businesses should stay informed about potential updates to VAT regulations and the ongoing push towards digitalization of tax administration.
Bulgaria Corona Tax Relief
April 2020The deadline for filing 2019 annual tax reports and paying the tax due was postponed till June 30,2020 for companies and individuals.
Individuals paying their due taxes and filing reports before May 31, 2020 will get a 5% deduction of their tax dues.
Bulgaria Norway Double Tax Treaty
January 2016The 2014 double tax treaty, DTA, between the two countries applies from
January 1, 2016 . The tax withholding rates according to the DTA will be 5%/15% on dividends, depending on the percentage of holding by the recipient company , 0%/5% on payment of interest and 5% on royalties.
Bulgaria Tax Rates 2013
June 2013There are no significant changes in the Bulgarian 2013 taxation compared to 2012.
In 2013 both the corporate income tax rate and the personal income tax rate are flat at 10%.
The Bulgarian social security rates are 17.8% -18.5% for employers and 12.9% for employees.
The standard V.A.T. rate in Bulgaria is 20% with a reduced 9% V.A.T. rate.
V.A.T. on Hotel Accommodation
February 2011Starting April 1, 2011 the Bulgarian V.A.T. on hotel accommodation will increase from the current 7% to 9%.
Bulgaria Tax Evaders
July 2010According to the NAP, National Revenue Agency of Bulgaria about 60%-70% of the retailers and 80% of the small shops owners evade reporting their real income.
The NAP will connect VAT registered taxpayers by September 2011 and other retailers by March 2012 to a distant internet connection to the NAP, ensuring better control over their real income.
Bulgaria Tax Rates 2009
March 2009There are no significant changes in 2009, compared to 2008.
The Bulgarian corporate income tax rate for 2009 is 10%. Individuals too pay a flat 10% tax on their income.
The standard V.A.T rate in 2009 is 20%. There is also a reduced V.A.T rate of 7%.
From 1.1.2009 the double taxation tax agreement with the U.S. is in effect. The tax treaty relates to maximum tax withholding rates for payments between the two countries. The treaty sets measures regarding tax avoidance as well.
2008 Income Tax Rates -Bulgaria
January 2008From 1.1.2008 Bulgaria has a new 10% flat tax rate for individuals, replacing the 10%-24% tax rates in 2007.
The Bulgarian 10% corporate tax rate for 2008 remains the same as in 2007.
The VAT rate in 2008 is 20%, the same as in 2007.
Bulgaria USA Tax Treaty
February 2007Bulgaria and the USA signed on 23.2.2007 the first tax treaty between the 2 countries.
Bulgaria Corporate Tax
January 2007From 1.1.2007 the new Bulgarian corporate tax rate is 10% ,compared to the previous tax rate of 15%.
The new tax rate is one of the lowest in the EU.
Bulgaria Property Tax
January 2006From 1.1.2006 Bulgaria property tax will increse by 30% in Sofia and other major cities in Bulgaria.
Bulgaria Income Tax
January 2005From 1.1.2005 the new Bulgaria corporate tax rate is 15%(previous rate-19.5%).
The top marginal tax rate for individuals in Bulgaria is 24%(2004-29%).
Bulgaria Income Tax
January 2004From 1.1.2004 the new corporate income tax rate in Bulgaria is 19.5%(previous rate-23.5%)
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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