Correction — September 2026. This article, published in January 2025, listed corporate tax changes that were never enacted. There is no reduced 8% rate for micro-enterprises, no 0.5% cap on representation expenses and no separate declaration line for cryptocurrency holdings. Bulgaria’s corporate income tax has been a flat 10% throughout, for companies of every size. The original text has been replaced with the position as it actually stands. We apologise for the error.
Bulgaria taxes company profit at a flat rate of 10%, one of the lowest headline rates in the European Union. The rate applies to every company registered in Bulgaria, whatever its turnover: there is no reduced band for micro-enterprises and no progressive scale.
What is actually true in 2026
- The rate is 10%, unchanged. Dividends distributed to individuals or to non-EU companies carry a separate 5% withholding tax.
- The annual return is due by 30 June of the following year, together with the annual activity report. Tax is payable by the same date.
- Advance instalments are set by your net sales revenue in the year before the previous year, not the previous year itself: none at or below EUR 153,387.56, quarterly from EUR 153,387.57 to EUR 1,533,875.64, monthly above that. Newly incorporated companies pay no instalments in their year of incorporation or the year after, unless they arose from a reorganisation.
- Two genuine reliefs arrived on 1 January 2026 with the amendments to the Corporate Income Tax Act: an additional 25% deduction for qualifying research and development spending, and 50% annual depreciation for electric vehicles acquired from that date.
- The 15% global minimum tax applies only to groups with consolidated revenue of at least EUR 750 million. A stand-alone Bulgarian company is not affected by it.
Where the confusion comes from
Proposals circulate every autumn with the draft budget, and several never become law. The 2026 budget, adopted in July 2026, kept the corporate rate, the personal rate and the dividend rate exactly where they were, and dropped the proposals to double the dividend tax and to raise social security contributions.
If you want the current figures in one place, the tax calendar lists every filing date and the good to know ledger carries the rates. For your own company’s position, talk to us.