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Personal income tax

  Who enter into its field? Who is considered as tax resident? Rate. Which incomes are taxable? Tax declaration and payment.

Personal income tax - PIT

Who enter into its field?

• local individuals;
• foreign individuals.

Who is considered as tax resident?

• individual with permanent address in Republic of Bulgaria.
• individual with stay in Republic of Bulgaria for more than 183 days in any 12 month period;
• individual sent abroad from the Bulgarian State or its representatives or organizations, from Bulgarian entities and the members of his family;
 • individual with centre of his vital interests is in Republic of Bulgaria (determined in view of their personal and economic ties to the country, e.g. factors like family, employment, possession of property, etc.)

• 10% on the taxable income.

Which incomes are taxable?

• income from employment;
• income from activity as a sole trader;
• income from other trade activity;
• income from rent or other consideration for the provision or use of property rights;
• income from transfer of rights or property.

Taxable are cash and in-kind incomes.

Bulgarian residents are taxable on their worldwide income, while foreign individuals are taxable only on income with a source in the Republic of Bulgaria.

Tax declaration and payment:

•  The annual personal income tax return has to be submitted by 30 April of the following year (the tax year coincides with the calendar year). The tax has to be paid by the same deadline.