Tax changes in Bulgaria in 2017

There are following changes with regard to taxes in Bulgaria in  2017:

• January 2017 – companies performing exclusively innovation, research and development activities as well as related activities are exempted from payment of profit tax in first 10 years of activity. This fiscal incentive could be applied only in case the state aid legislation is observed.

• February 2017  – companies whose revenues in the previous financial year do not exceed EUR 500.000 (exchange rate valid at 31 December) and fulfil the rest of the three criteria already applicable in microenterprises case, will be held liable for payment of tax on microenterprises.  Microenterprise tax is 1% in case of companies having 1 or more employees and 3% in case of companies without employees. The microenterprise tax of 2% was repealed.

• Microenterprises which realize revenues exceeding EUR 500.000 or the percent of revenues obtained from consultancy and management activities exceeds 20% of their total revenues, will be held liable for payment of profit tax starting with the quarter when one of the above mentioned limits is exceeded.