Personal Income Tax

As with other taxes in Bulgaria, we advise and represent private individuals in all matters related to their personal income taxes. Some of our services in this field include:

• examining your sources of personal income and devising an individual tax minimization strategy
• determining whether you are subject to personal income tax in Bulgaria
• preparing your annual personal income tax declaration
• filing your tax declaration in compliance with the rules of the National Revenue Agency (NRA)
• providing legal protection and representation before NRA in case of tax audit

Personal Income Tax Act (PITA) regulates the personal tax levied on local natural persons in Bulgaria. The personal income tax in Bulgaria is only 10% flat rate. Subject to personal income tax are also individuals who are registered as Bulgarian sole traders.

PITA determines that a local natural person is an individual, irrespective of his/her citizenship, that falls either one of the following categories:

• has permanent address in Bulgaria, or
• stays in the country for more than 183 days within 12 month period, or
• whose center of main interest is in Bulgaria.

Under PITA, the following income is subject to tax: from commercial activities, leases, dividends and liquidation proceeds, salaries, including for wages for management of a company registered in Bulgaria. Sole traders are subject to 15% tax rate. The deadline for filing the annual tax declaration is April 30 of the year following the receiving of the income.

If we submit your annual tax return prior to 31 March of the subsequent year electronically, you can take advantage of 5 % discount of the amount payable under the annual tax return.