As of January 2025, several changes to the Corporate Income Tax Act have come into force. The most notable amendments include:
- A reduction in the corporate tax rate for micro-enterprises, which now stands at 8% instead of 10%, applicable to companies with annual turnover below BGN 200,000.
- Stricter rules on deducting representation expenses, with a new cap of 0.5% of total revenue.
- Tax treatment of digital assets: Companies holding cryptocurrency assets are now required to declare them separately in the annual tax return, along with realized gains or losses.
- Changes in depreciation rules: Some intangible assets, such as software licenses, now fall under a new depreciation category.
- This category allows for shorter amortization periods.
Accountants are encouraged to review their clients’ financial statements and projections to ensure compliance with these new regulations.
English 
German