TSIPC · CITA · VATA · PITA · Updated 2026

Tax Law

We advise businesses and individuals on all tax matters — from strategic planning and VAT optimisation to representation during tax audits and appeals of tax assessments.

Key Practice Areas
Full range of tax services for your business
How the Tax Audit Works
5 stages from the order to the tax assessment entering into force

Critical Deadlines

Missing the 14-day appeal deadline makes the tax assessment final. Contact us immediately upon receiving the assessment.

Audit Order

The NRA issues an order specifying the scope, period and team. Not subject to independent appeal.

Conducting the Audit

Gathering evidence, cross-checks, explanations. Duration: up to 3 months (extendable).

Audit Report

Prepared within 14 days. Contains factual findings and legal conclusions.

Objections

14 days (extendable to 1 month) to submit objections and additional evidence.

Tax Assessment

Issued within 14 days. Appeal: 14 days to Regional Directorate → Administrative Court → SAC.

Tax Environment in Bulgaria
Among the lowest rates in the European Union
10%
Corporate Tax
(EU avg: 21.3%)
10%
Personal Income Tax
(flat, no brackets)
5%
Dividend Tax
(0% under EU directive)
20%
Standard VAT Rate
(9% for tourism)
70+
DTTs with countries
BGN 100K
VAT registration threshold
(from April 2025)
5 yrs
Statute of limitations for audits
EUR
Eurozone from 2026
Full Scope of Services
We advise international corporations as well as local companies and individuals
Corporate taxation
VAT registration and refunds
Transfer pricing
Application of DTTs
Tax due diligence in M&A
NRA representation
Appeal of tax assessments
Holding structures
Tax planning for real estate
Instalment of tax liabilities

Frequently Asked Questions

What is the corporate tax rate in Bulgaria? +

Bulgaria has a flat corporate tax rate of 10% -- one of the lowest in the European Union. The rate applies uniformly to the profits of all legal entities, regardless of their size.

When is VAT registration mandatory? +

VAT registration is mandatory when taxable turnover reaches BGN 166,000 over the preceding 12 months. There are also special grounds for mandatory registration, such as intra-Community acquisitions or receiving services from abroad.

What are the deadlines for appealing a tax audit? +

A tax assessment may be appealed administratively before the Director of the Appellate Tax Directorate within 14 days of service. The decision may then be challenged before the Administrative Court within a further 14 days.

Can I apply for tax planning as a foreign company? +

Yes, we advise foreign companies on Bulgarian tax matters including tax planning, double tax treaties (DTTs), permanent establishment issues, and transfer pricing. Bulgaria has an extensive DTT network covering over 70 countries.

What is the withholding tax rate on dividends? +

The withholding tax on dividends distributed to non-resident entities is 5%. EU/EEA companies holding at least 10% of the share capital may qualify for an exemption under the EU Parent-Subsidiary Directive.

Have a tax question or an upcoming audit?

Contact us for a confidential consultation — we respond within 24 hours.