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With corporate profits tax in Bulgaria are levied on corporate entities in the exercise of their business. The tax base for determining the corporate profit tax is the tax that is determined by Bulgarian CIT Act as a positive financial result.
Corporate tax is declared by filing an annual tax statement by taxpayers or their representatives authorized by the competent territorial directorate of the National Revenue Agency (NRA).
The model declaration is approved by the Minister of Finance and published in Bulgarian State Gazette.
ANNUAL STATEMENT FOR CORPORATE TAX shall be filed at that the National Revenue Agency, to which the taxpayer is registered.
Taxable persons
Persons liable for income tax are:
– Local entities – companies;
– Local unincorporated companies and insurance funds established pursuant to Art. 8 CSR Act;
– Foreign legal entities when conducting business in the country through a permanent establishment;
– Unincorporated foreign companies when doing business in the country through a permanent establishment
Corporate tax is not paid by those subject to alternative tax for the activity mentioned explicitly in the CIT.
These are the organizers of gambling and those operating from ships operation.
Taxable persons who are subject to corporate tax, and accordingly submit an annual tax declaration are local entities and foreign entities doing business in Bulgaria through a permanent establishment.
To these two categories should be added and unincorporated associations and insurance funds, which art. 2, para. 2 CIT creates a legal fiction, they are treated as legal persons, although they are not separate entities.
The provisions of CITA are defined and the concepts of local and foreign persons. According to Art. 3 CITA, local entities are:
– Legal entities established under Bulgarian law, ie registered in Bulgaria;
– Companies incorporated under Council Regulation (EC) ? 2157/2001 of the Council concerning the European companies created under the regulation, and cooperatives established under Regulation (EC) ? 1435/2003 of the Council, where their headquarters is in the country and entered in the Bulgarian register.
Foreign legal persons of the opposite argument are those who are not local.
The importance of the division, as well as other tax laws related to the fact that local entities are subject to an annual tax on the profits from all sources in Bulgaria and abroad – ie they act the principle of taxing worldwide income, while foreign entities are taxed only on profits earned through a permanent establishment in Bulgaria.
The tax period for determining the corporate income tax, according to Art. 21 CIT is the calendar year, and for newly established taxable persons, the tax period covers the period from the date of their establishment until the end of the year.
Rate of corporation tax is 10 percent according to Art. 20 CIT. The specific amount determined by multiplying the tax base the tax rate.
The declaration shall be filed:
– In the office of the NRA for registration;
– By registered mail;
– Electronically via electronic signature
Taxpayers under CITA submit their statement within the order CITA along with necessary documents.
When these obligations, they are administrative prosecution. A person who fails to state or misstates any particulars or circumstances in the tax return, do not submit or not submit it on time, and these circumstances lead to the determination of tax due to a smaller size or exemption, suffer a penalty. It is double the amount for repeated breaches of legal rules. Administrative and criminal responsibility of the person who does not submit an annual declaration to the application.
The refusal of ownership is an explicit statement of the owner of this right, which he clearly expressed his desire to terminate possession, use and disposition of certain personal property.
The ownership refusal of property is explicit and formal act, dressed in writing with a notarized signature, subject to registration in the Bulgarian Property Registry. It does not end effect of favoring a third party as it is done in foreign help.
Since the Bulgarian legislation has not yet entered the Institute of insolvency of individuals refusing an inheritance is a way to get rid of the creditor’s harassment.
In our practice we encounter unfair playing creditors as well and debtors.
With the declaration of intention to renounce ownership of property, it falls into the category of so-called orphan assets.
Specific legal regime is established in respect of stray farmland: Bulgarian Law provides that agricultural land does not belong to citizens, legal persons or the state is a municipal property.
The refusal of ownership of property is made by written statement with notarized signature of the holder of that right.
To become effective, it should be recorded in the Land Registry. The withdrawal of the waiver of the property is eligible for such registration (Art. 100, para. 2 Bulgarian Ownership Law).
There are specific situations of ownership refusal of movable property. The lack of a comprehensive legislative regulation in this area is dictated by the variety of situations that may arise in practice.
There is no requirement refusal of ownership of chattels to be done by a formal act.
It is possible implication of the owner to express their intention to refuse, and abandoned property, in the absence of a statutory form of reality in terms of transfer of ownership of movable property.
The contract for sponsorship has no explicit rules, but is widespread in practice.
The sponsorship contract in general could be defined as a contract under which the sponsored person receives economic aid from the sponsor for the implementation of sports, cultural, scientific or other activity for which undertakes to promote the sponsor by promoting its name, brand, business or its products.
Sponsorship can be geared to support a specific event, such as: concerts, exhibitions, sporting event, the issue of literary work, and so on.
Parties to the sponsorship is person providing economic assistance to any entity to support a particular activity or event – sponsor and the person who undertakes to cooperate in exchange for sponsor advertising – sponsored.
Sponsor may be a legal person (in practice most sponsors have different associations, foundations, banks, commercial companies) or adult individual.
Minors can be sponsored, but can not be sponsors.
Sponsored could be as an individual and legal entity.
The sponsorship contract is concluded with agreement between the parties, which need not be dressed in writing reality.
Parties to the sponsorship is person providing economic assistance to any entity to support a particular activity or event – sponsor and the person who undertakes to cooperate in exchange for sponsor advertising – sponsored.
Given that no explicit rules on sponsorship contracts, the parties themselves determine their rights and obligations, without prejudice to the mandatory rules of law and morality.
Usually by contract for sponsorship sponsor agrees to provide economic assistance to the sponsored person to implement an activity or event, sponsored and undertook to promote and popularize the name (company), business or products of the sponsor.
In all cases, the consideration that due to the sponsored person is not equivalent to the property provided by the sponsor economic assistance.
Depending on the availability or absence of an international element contracts for commercial sale are:
- a contract for sale within the trade agreement
- foreign sales.
International sale is when one of its elements it is connected with the legal order of another state or country. Uniform regulation of international sales is contained in the Vienna Convention (IC) of the United Nations on Contracts for the International Sale of Goods.
This Convention applies to contracts for sale of goods between parties whose places of business in different States in this consists its international character.
If the country has more than one place of business of such shall be the place that is most closely connected with the contract and its implementation, taking into account the circumstances that were known to the parties or were considered by them any time before or at the conclusion of the contract.
If the country has no fixed place of business, reference is made ??to his habitual residence (Art. 10 BK).
The international nature of the sale has a subjective side, it must be known at least in any of Contractors in the contract, any other transaction between them, either by outward from each side information before or at the conclusion of the sale.
If in a contract or information exchanged between the parties does not indicate that their places of business in different countries, this fact, though objectively there is not taken into account (Article 1, item 2 BK).
Following prerequisites for the implementation of the Convention at the time of the contract place of business of the parties is located in the State Party or a State not party, but whose rules of private international law lead to application of the law Contracting State.
Vienna Convention applies both to civil and commercial sales in nature.
From the field are excluded however sales of goods bought for personal, family or household use, unless the seller before or at the conclusion of the contract didn’t knew or should not have known that the goods were bought for such use.
Excluded as well are:
- sales by auction, based on execution or otherwise by law;
- sales of stocks, shares, security bonds, securities and money;
- of ships, vessels, vehicles, hovercraft or aircraft;
- Electricity.
The last prerequisite for application rules of the Vienna Convention is not the parties expressly excluded its operation or may not be derogated from its rules by special stipulations in the contract.
Convention mainly regulates the contract of sale thereof and the resulting rights and obligations of the seller and the buyer.
Otherwise expressly provided therein, it not relates to the validity of the contract as a whole or its individual provisions as well as the effect which the contract may have on the ownership of the merchandise sold.
Bulgarian Attorney has the pleasure to offer as an additional service on-line registration of companies in Bulgaria for foreign investors. The package of services includes 100% all legal procedures necessary for the registration of a company in Bulgaria on a very competition start up costs, namely:
* registration of the business in the trade register;
* tax-statistic registration of the company;
* social insurance registration of the company;
* opening of a bank account on the name of the new company;
* preparation of the company’s seal;
* we are using our own money for the company’s capital;
* unlimited nominal company’s office for free – the office of our legal department will be used as official business address of the new company;
Start up costs for the registration of a business is 430 euro in total, including all state fees and lawyer’s remunerations.
No hidden fees. No annual payments.
N.B.! The registration of the company will be made through internet so your personal presence in Bulgaria will not be necessary.
Bulgarian Taxation Rates:
Profit Tax FLAT 10%
Dividend Tax within the EU 0%
VAT within the EU 0%
Personal Income Tax FLAT 10%
It is owned by a natural or a legal person – EOOD, the sole shareholder exercises the powers of the general meeting and the managing director or board of directors is appointed to run the company.
A private limited liability company may be founded by one person, including foreign natural or legal persons. The minimum foundation capital is Leva 2,00.
Limited Liability Company
Private Limited Company (a limited liability company) – “OOD” – it is a commercial company with share capital owned by its members whose liability is limited to the amount of the capital subscribed.
A private limited liability company may be founded by one or more persons, including foreign natural or legal persons. The minimum foundation capital is Leva 2,00.
Obtaining a Bulgarian Visa D
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| a. Applicant MUST apply at the Bulgarian Consulate in the country of his PERMANENT residency (i.e. in his HOME country).b. The immigration visa D will be issued by the Bulgarian Consulate in the applicant’s home country within a period of 1-3 months after the application is filed.
c. Upon receiving the immigration visa D from the consulate, the applicant is now free to enter Bulgaria. The immigration visa D will be activated with an immigration entry stamp upon his arrival in Bulgaria.
- NOTE: After entering Bulgaria every foreigner is obliged to register at the Local Police Office within 5 days of the date of entry if not staying in a hotel.
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Obtaining a Bulgarian Residency Permit
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| a. After accomplishing the steps to receive a immigration Visa D, the applicant then must apply for his Residency Permitat the Local Police Office.b. The Residency Permit will be issued by the Police after 14 calendar days. Cost for the permit is: 200 BGN for an up to 6 month permit or 500 BGN for an up to 12 months permit
c. The permits are valid beginning from the date of application. |
Obtaining a Bulgarian ID card
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| a. After obtaining a Bulgarian residency permit the applicant is required to apply for a Bulgarian ID card. The ID card verifies the bearer’s right to residency Bulgaria. The ID card must be carried at all times in Bulgaria and when entering or leaving the territory of Bulgaria.b. The Police Office issues ID cards in:
i. 10 working days (90 BGN)
ii. 1 month (45 BGN)
c. The ID card is valid in concurrence with the length of the bearer’s Residency Permit. Application must be made for a new card each time a person`s Residency Permit is renewed. |
Long term Residency – up to 5 years.
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| a. After 5 years of residency without interruption the foreigner can apply for long term residency. This allows a foreigner to legally reside in Bulgaria up to 5 years.b. In order to maintain permanent residency status, it is required that a person not to be absent from EU more than 6 months in a row or 10 months total during the 5 year period.
c. After 5 years of Long term residency the foreigner is eligible to apply for No Limit Long Term residency. |
No Limit Long Term Residence Permit.
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| a. After 5 years of Long term residency without interruption the foreigner can apply for no limit long-term residence permit. This allows a foreigner to legally reside in Bulgaria without time limitations.b. In order to maintain no limit long-term residency status, it is required that a person not to be absent from EU for more than 12 months in a row.
c. After 5 years of No Limit long-term residency the foreigner is eligible to apply for Bulgarian citizenship. The procedure takes about 2 years.
Our Immigrating attorneys are specialized in legal Immigration in Bulgaria.
Get in touch if you need to ask and learn more. |
The trademark as an exclusive right shall be acquired by registration in the Bulgarian Patent Office.
Rights to register belong to the first applicant.
Matter regulating trademarks contained in Marks and the geographic names Act. This law provides the conditions and the order for registration of the marks and the geographic names, the rights ensuing from it and the protection of these rights.
The provisions of this law shall be applied with regard to Bulgarian individuals and corporate bodies as well as with regard to foreign individuals and corporate bodies from states participating in international agreements party to which is the Republic of Bulgaria.
With respect to foreign individuals and corporate bodies from other states this law shall be applied under the conditions of mutuality which shall be assessed by the Bulgarian Patent Office.
Any person who in compliance with this law has the right to implement activities before the Patent Office shall be able to do so personally or by a local representative of industrial property. The persons who do not have permanent address or headquarters in the Republic of Bulgaria shall implement activities before the Patent Office by a local representative of industrial property.
The mark shall be a sign capable to distinct the commodities or the services of one person from these of other persons and could be graphically presented. Such signs could be words, including names of persons, letters, numbers, drawings, forms, and the form of the commodity or its packing, combination of colors, sound or any combinations of such signs.
The status of the well-known brand and a brand with a reputation, support the realization of fair market competition, while protecting individuals from inadvertently violating of the mentioned Act.
Originally marks shall be acquired for a period of ten years from the date of application for registration. Registration may be renewed indefinitely for additional periods of ten years.
On renewal is paid state fee. Renewal should be made before the expiry date of the initial ten year period or at the latest six months after its expiry in which case the fee shall be paid double the amount.
Trademark belonging to another person may be used only with the consent of the holder. For this purpose, signed a license agreement between parties that objectified consent reached between them. Signed licensing contracts entered in the register maintained by the Patent Office of Bulgaria, to have force and effect against third parties.
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