iCalculator™ BG: Bulgaria Tax Calculators

Welcome to iCalculator™ BG, your comprehensive suite of free tax calculators for Bulgaria. iCalculator™ has provided free tax calculators for Bulgaria since 2019. Since those early days we have extended our resources for Bulgaria to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Bulgaria Tax Calculator and salary calculators within our Bulgaria tax section are based on the latest tax rates published by the Tax Administration in Bulgaria. In this dedicated Tax Portal for Bulgaria you can access:

Bulgaria Tax Calculator 2023/24

The Bulgaria Tax Calculator below is for the 2023 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Bulgaria. This includes calculations for

1. Employees in Bulgaria to calculate their annual salary after tax.
2. Employers to calculate their cost of employment for their employees in Bulgaria.

Taxation in Bulgaria is characterized by its comprehensive framework, designed to accommodate both individuals and corporate entities. The country has made efforts to align its tax system with European Union directives, making it investor-friendly while ensuring compliance with international standards.

Personal Income Tax

Bulgaria applies a global income tax system for individuals, taxing income from various sources such as employment, business activities, and investment. Taxpayers are required to file annual tax returns and pay any due tax. The administration of personal taxation emphasizes simplicity to facilitate compliance.

Corporate Tax

Companies registered in Bulgaria are subject to corporate tax on their worldwide income. This includes profits from business activities, capital gains, and certain types of passive income. Firms must adhere to strict reporting standards, including annual financial statements and tax returns.

Value Added Tax (VAT)

Value Added Tax is a consumption tax charged on most goods and services in Bulgaria. Businesses act as tax collectors, charging VAT on their sales and remitting it to the authorities. They can also recover VAT paid on business-related purchases, with precise record-keeping being essential for accurate VAT compliance.

Excise Duties

Excise duties in Bulgaria apply to a specified range of goods considered to be harmful or luxurious, such as alcohol, tobacco, and fuel. These duties are collected at different stages of production and distribution. Businesses dealing with excisable goods must be registered and maintain detailed accounts.

Property Taxes

Property tax is imposed on real estate ownership in Bulgaria. This local tax is calculated based on the property's tax assessment value and is payable annually. Property owners must declare any changes in property status to ensure accurate tax assessment.

Withholding Tax

Bulgaria imposes a withholding tax on certain types of income paid to non-residents, such as dividends, interest, royalties, and technical service fees. Payers of such incomes are responsible for withholding and remitting the tax to the Bulgarian tax authorities.

Social Security Contributions

Both employers and employees are subject to social security contributions, which fund the national social security system. These contributions are mandatory and cover pensions, health insurance, and employment-related benefits.

Transfer Tax

Transfer taxes are levied on the transfer of certain rights and properties, such as real estate and vehicles. The tax base and the compliance procedures for these transfers are stipulated by national legislation.

Tax Compliance and Administration

The National Revenue Agency (NRA) is the principal body responsible for tax collection and enforcement of tax laws in Bulgaria. Taxpayers must ensure accurate and timely filing of tax returns, payment of due taxes, and adherence to documentation and record-keeping requirements. The NRA provides guidelines and assistance to taxpayers to promote compliance and understanding of the tax system.

In summary, Bulgaria's tax system encompasses various types of taxes, each with its own set of compliance requirements. The emphasis on regulatory adherence and the simplification of procedures reflect Bulgaria's commitment to creating a transparent and efficient tax environment.