Advance Tax Payments Bulgaria 2026 | Rules & Deadlines

Q: What is the difference between determined and paid advance payments?

Interest under Art. 89 CITA is calculated on determined (declared) payments, not on amounts actually paid. If you declared a low estimated profit but paid more, interest is still calculated on the declared amounts.

Who is required to make advance payments under CITA

The obligation to make advance corporate tax payments is set out in Art. 83–91 of CITA. Taxable persons under Art. 2(1) of CITA — commercial companies, cooperatives and other legal entities carrying on economic activity — must make advance payments based on their estimated taxable profit for the current year.

The criterion determining the type of advance payments is the amount of net sales revenue for the year preceding the previous year (the “base year”). For advance payments in 2026, the base year is 2024.

Exempt from advance payments (Art. 83(2) CITA):

Taxable persons whose net sales revenue for the base year does not exceed BGN 300,000 (approximately EUR 150,000)
Newly established entities — for the year of establishment and the following year (except those established as a result of corporate transformation under the Commerce Act)

Types of advance payments

Type	Condition (net sales revenue for the base year)	Frequency	Calculation
Monthly	Over BGN 3,000,000 (≈ EUR 1.5M)	Every month	Estimated annual profit ÷ 12 × 10%
Quarterly	BGN 300,001 to BGN 3,000,000 (≈ EUR 150K–1.5M)	Every quarter	Estimated annual profit ÷ 4 × 10%
No advance payments	Up to BGN 300,000 (≈ EUR 150K)	Not required	—

Entities established through corporate transformation must make quarterly advance payments in the year of transformation and the following year (Art. 83(3) CITA).

Entities exempt from the obligation may voluntarily make quarterly payments. In such cases, the penalty interest under Art. 89 of CITA does not apply to them.

How to calculate advance payments

Monthly advance payments (Art. 86 CITA)

Monthly advance payment = (Estimated taxable profit for the year ÷ 12) × 10%

Example: A company with net sales revenue for 2024 of BGN 4,000,000 estimates its taxable profit for 2026 at EUR 300,000 (≈ BGN 586,800). The monthly advance payment is: 586,800 ÷ 12 × 10% = BGN 4,890/month.

Quarterly advance payments (Art. 87 CITA)

Quarterly advance payment = (Estimated taxable profit for the year ÷ 4) × 10%

Example: A company with net sales revenue for 2024 of BGN 500,000 estimates its profit for 2026 at EUR 50,000 (≈ BGN 97,800). The quarterly advance payment is: 97,800 ÷ 4 × 10% = BGN 2,445/quarter.

Declaration and payment deadlines

Declaration (Art. 87a CITA)

The type and amount of advance payments for the current year must be declared between 1 March and 15 April of the current year using the prescribed form under Art. 87a CITA.

Monthly payment deadlines (Art. 90 CITA)

Period	Deadline
January – March	By 15 April of the current year
April – November	By the 15th day of the respective month
December	By 1 December of the current year

Quarterly payment deadlines (Art. 90 CITA)

Quarter	Deadline
Q1 (Jan – Mar)	By 15 April
Q2 (Apr – Jun)	By 15 July
Q3 (Jul – Sep)	By 1 December
Q4 (Oct – Dec)	No advance payment is due

Upon filing the annual tax return under Art. 92 CITA, any difference is settled by 30 June of the following year.

Amendment of advance payments (Art. 88 CITA)

If it becomes clear during the year that the estimated profit differs significantly from the original declaration, an amendment is available:

An amendment declaration may be filed by 15 November of the current year
The amendment takes effect from the date of filing — it cannot be applied retroactively
Both increases and decreases are permitted

This option is of considerable practical importance, as an accurate estimate protects against penalty interest.

Penalties for underpayment (Art. 89 CITA)

If the annual corporate tax due exceeds the total declared advance payments by more than 25%, penalty interest is charged on the excess above 25%.

Formula for monthly payments

A = B − (C + 0.25 × C)

Where: A = amount subject to interest; B = annual corporate tax due; C = total declared monthly advance payments.

Formula for quarterly payments

A = 0.75 × B − (C + 0.25 × C)

Where: A = amount subject to interest; B = annual corporate tax due; C = total declared quarterly advance payments.

Interest is calculated for the period from 16 April to 31 December of the respective year, in accordance with the Act on Interest on Taxes, Fees and Other Similar State Receivables. The interest rate is the BNB base interest rate + 10 percentage points.

Example: A company declared monthly payments based on an estimated profit of EUR 200,000 (total payments EUR 20,000). The actual tax due is EUR 30,000. The excess is EUR 10,000, and the permissible deviation is 25% × EUR 20,000 = EUR 5,000. Interest is charged on EUR 10,000 − EUR 5,000 = EUR 5,000.

Advance tax for individuals under PITA

Employment income

Advance tax on employment income is determined, withheld and paid by the employer on a monthly basis (Art. 42 PITA). The tax rate is 10% on the monthly tax base — the taxable income reduced by the employee’s personal social security contributions.

The payment deadline is the 25th day of the month following the month to which the income relates.

Income from other economic activities (Art. 43 PITA)

Individuals earning income from freelance activities, civil contracts, agriculture, copyright royalties and similar activities must make quarterly advance payments.

Taxable income is determined after deducting standard expense allowances:

60% — for agricultural producers (unprocessed products)
40% — for copyright royalties, craftsmen, attorneys
25% — for other freelance professionals and civil contracts

The advance tax is 10% on the difference between taxable income and the individual’s personal social security contributions.

Rental income (Art. 44 PITA)

Advance payments on rental income are also quarterly. Taxable income is determined after deducting 10% standard expenses.

Who withholds and pays

If the payer is an enterprise or self-insured person — it withholds and pays the tax (Art. 43(4) and Art. 44(4) PITA)
If the payer is not an enterprise — the obligation falls on the individual who received the income

Payment and filing deadlines (Art. 55, 65, 67 PITA)

Quarter	Payment deadline	Filing (declaration under Art. 55 PITA)
Q1 (Jan – Mar)	By 30 April	By 30 April
Q2 (Apr – Jun)	By 31 July	By 31 July
Q3 (Jul – Sep)	By 31 October	By 31 October
Q4 (Oct – Dec)	No advance payment (unless the individual requests withholding)	—

For Q4, if the individual has requested withholding in writing, the tax is paid by 31 January of the following year.

The annual tax return under Art. 50 PITA must be filed by 30 April of the following year.

Frequently asked questions

What happens if a newly established company does not make advance payments?

Newly established companies (except those formed through transformation) are exempt from advance payments for the year of establishment and the following year (Art. 83(2)(2) CITA). No interest is charged.

How do I determine the net sales revenue for the base year?

Net sales revenue is determined under the applicable accounting standards (NAS or IFRS) — revenue from the sale of goods, products and services, net of trade discounts and VAT.

Can I avoid advance payments if I expect zero profit?

If you are required to make advance payments (net revenue exceeding EUR 150,000), you must file the declaration under Art. 87a, even with zero amounts. If you actually realize a profit at year-end, interest may apply if the underpayment exceeds 25%.

What is the difference between “determined” and “paid” advance payments?

Interest under Art. 89 CITA is calculated on determined (declared) payments, not on amounts actually paid. Therefore, if you declared a low estimated profit but paid more, interest is still calculated on the declared amounts.

Can I amend advance payments more than once?

Yes. You may file multiple amendment declarations under Art. 88 CITA, but no later than 15 November of the current year.

How is rental income taxed when the tenant is an individual?

When the payer is not an enterprise, the obligation to calculate and pay the advance tax falls on the landlord — the individual receiving the income. They must file quarterly using the declaration under Art. 55 PITA.

Is the employer required to withhold advance tax from salaries every month?

Yes. The employer is required to withhold and pay advance tax on employment income monthly, by the 25th of the following month (Art. 42(1) PITA).

Does the penalty interest under Art. 89 CITA apply to companies that voluntarily make quarterly payments?

No. Entities exempt from the obligation that voluntarily make quarterly payments are not subject to the penalty interest under Art. 89 CITA (Art. 83(2), last sentence, CITA).

Conclusion

Advance tax payments are a fundamental obligation for Bulgarian businesses and individuals. Understanding the thresholds, calculation methods and deadlines is essential for avoiding penalty interest and maintaining good standing with the NRA. The ability to amend declarations by 15 November provides valuable flexibility for adjusting estimates during the year.

The Innovires Legal team can assist you with calculating advance tax payments, filing declarations, and managing your tax obligations. Contact us for a consultation.

This article is prepared for informational purposes only and does not constitute legal advice. For specific questions regarding your advance tax payments, please consult a qualified professional. The information is current as of the publication date (28 March 2026) and may be affected by subsequent legislative changes.

Advance Tax Payments in Bulgaria — Rules & Deadlines (2026)