Income tax Bulgaria

Any income, which has its source inside the country referred to in Art. 12, paragraph 2, 3, 5 and 8 herein, accruing to any non-resident natural person, were not accruing through a permanent establishment in the Republic of Bulgaria and incomes from sources in the country referred to in Art. 12, paragraph 9 of the CITA of foreign legal persons established in jurisdictions with a preferential tax regime when they are not realized through a permanent establishment in the country, shall be subject to levy of a tax withheld at source which shall be final. The tax shall be withheld by the resident legal persons, the sole traders or the permanent establishments in the country which charge the income to the non-resident legal persons (Art. 195, paragraph 1 and 2 of the CITA). The taxable amount for assessment of the corporation tax shall be the tax profit. The rate of corporation tax shall be 10 per cent (Art. 19 - 20 of the CITA). Any person, who has acquired income from business activity, under Art. 29 of the Income Taxes on Natural Persons Act shall due in advance a tax on the difference between the taxable income and the contributions which the self-insured person is obliged to pay at his own expense for the months of the quarter during which the taxable income was gained, and if the person is not self-insured - between the taxable income and the compulsory social insurance contributions withheld by the employer. The amount of the tax due shall be calculated as the difference under Art. 43, paragraph 1 of the ITNPA shall be multiplied by 10 per cent tax rate - Art. 43, paragraph 1 and 3 of the ITNPA. The income tax of these persons shall be fixed and paid by the companies, which have charged and paid it. The advance income tax from leases, rents and payment is determined and paid up by the recipients of this income for each quarter (by the 15-th of the month following the end of the respective quarter) on the account of the Territorial Directorate of the National Revenue Agency (NRA) per permanent address of the person, who has received the lease, leasehold or rent. Taxability shall not apply to any income derived from ground rent, rent charge or from other onerous provision for use of agricultural land (Art. 13, paragraph 1, item 24 of the ITNPA).