In Bulgaria
income of any individual is subject to a flat income tax rate of 10% in 2013.
Exemptions
are granted to taxpayers with specific types of income.
The
standard rate of tax for a Bulgarian corporate tax in in 2013 is 10%.
An
individual in Bulgaria is liable for tax on his income as an employee as well
as on income as a self-employed person. In the case of an individual who
answers the test of a "permanent resident" of Bulgaria, tax will be
calculated both on his income earned in Bulgaria and overseas.
A foreign
resident who is employed in Bulgaria pays tax only on his income in Bulgaria.
To be
considered a Bulgarian resident, the requirements must be met of residency in
Bulgaria of at least 183 days in any calendar year, and occasionally also if
residency is less than 183 days, if the individual has a home in Bulgaria that
is his main residence, he will be considered a Bulgarian resident.
An employer
is obligated to deduct the income tax payable as well as national insurance,
immediately each month from a salary paid to an employee.