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ITAP LLC

Corporate Services

Tax & Accountancy

Legal Compliance

Bank Introduction

Bulgarian tax of 10% - lowest in EU.

Accountancy, planning, tax returns and financial optimization. Compliance.

Taxes in Bulgaria

Optimize your tax load and apply the lowest EU tax rate

We will assist you to meet all legal, accounting and filing requirements by performing the necessary tasks for you. Your company bookkeeping will be held up to the highest standards and all legal requirements will be met.

If you expect significant number of transactions and volumes, we will plan together your requirements in order to determine the best legal approach and optimal cost solution. Taking advantage of the extremely low corporate tax rate of 10% in Bulgaria, you can be certain that you will benefit strongly from your Bulgarian enterprise.

We will define a detailed set of procedures covering your new company's invoicing and expensing functions in order to guarantee the seamless flow of your dealings.

Establishing efficient accounting processes with the right professionals is a critical part of success. Fair presentation of everyone's financial results, whilst optimizing taxes is key for managing a profitable and sustainable business.

We help you with regulatory requirements as well. Depending on the organization, size and the objectives of your business, it may be appropriate to allow our accounting professionals to take care of your accounting function on a turnkey basis.

You can rest assured that we maintain strict privacy and confidentiality policy and guarantee the security of your data. All electronic records are kept by us in encrypted form using industry standard AES encryption.

Outsourcing your accounting processes to us reduces the associated costs and saves you a lot of time and effort. You can focus on the core issues of your business, while we take care of your accountancy and compliance matters. High net worth individuals and actively trading Corporations can enjoy personalized tax and accountancy service in Bulgaria by our dedicated financial department.

Optimizing your tax bill

Our services include, but are not limited to the following:


More on filling your annual tax return

Local and foreign companies doing business in Bulgaria are obliged to submit an annual tax return. It should be filed by 31st of March of the following year in the territorial directorate of the Bulgarian National Revenue Agency. If the firms have not reported income or expenses during the year, they are not required to file full annual tax return, instead they submit form 1010a.

The annual tax declaration of local individuals has to include:


Private individuals who have received only employment income as well as non-taxable income or income subject to final tax are not obliged to file an annual tax return.

An important factor to determine if a person is employed or self-employed is whether the person performing the activity is a "person in the business on its own account". The individuals who are freelancers performing registered crafting activity, all sole traders, owners or partners in commercial companies, individuals, member of unincorporated associations and registered agricultural or tobacco producers are self-employed.

Monthly tax on self-employed persons for income from labor relationship is defined as taxable income charged for the month and shall be reduced by the advance payments made through the company contributions which the self-employed is obliged to make at their own expense. The amount of tax due is calculated by multiplying the difference by the tax rate of 10%.

Employment income tax is payable by individuals, who receive income from committing activities as a sole trader. According to law there are two cases:

- For individuals resident and ordinarily resident in Bulgaria - tax is due on total remuneration received in and outside of Bulgaria

- For individuals not resident in Bulgaria - tax is due on total remuneration received for duties performed in Bulgaria

To a sole trader is valid the principle of "accounting" for determining the total annual income - it is formed by the income relating to that year regardless when paid.

Income from employment is the only type of income, which is assessed not only on an annual base but also on a monthly tax base. The monthly tax base is defined as the taxable income accrued for the month is reduced by the deducted by the employer contributions required to be borne by the individual under the Social Security Code and the Health Insurance Act or any similar compulsory insurance abroad.

There are two tax rates. The monthly tax base after the reduction of its tax relief shall be multiplied by tax rate of 10 percent and for the income obtained as a seafarer - tax rate is 1%. The obligation for the determination, withholding and payment of income tax on income from employment rests entirely with the employer.


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