Bulgaria: Domestic Corporate Taxation
Calculation of Taxable Base
Other than partnerships that are not incorporated, all companies (business entities) must pay corporate income tax. Company expenses, including entertainment and gifts and bonuses to staff, are taxed at 25%. Genuine costs incurred to maintain the company’s revenue and profitability are generally allowed. Losses may be carried forward up to five years. Tax-deductible depreciation methods are prescribed by legislation.
Municipal tax of 10% is charged but can be deducted from the tax base before calculating corporate income tax liability.