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Bulgaria: Personal Taxation

Rates of Income Tax

For employed individuals, income tax is levied at a flat rate of 10%. Employers are required by law to deduct income tax and national insurance contributions at source from the employee’s salary. The 10% flat rate is also applicable to income from royalties, interest and capital gains. There is a 5% tax on dividends.

Sole traders or other small trading entities are taxed by way of a final annual tax of 15% on income derived from Bulgarian sources, provided income is less than BGN50,000 for the previous year.

There are no personal tax allowances in Bulgaria, with the exception of disabled people who have an annual allowance of BGN7,920 (as at 2012).




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