Advance instalments for Corporate income tax according to the Bulgarian CIT Law

In compliance with the Corporate Income Tax Act /Chapter fourteen ADVANCE CONTRIBUTIONS/, the taxable persons shall make monthly or quarterly advance contributions for corporate tax.
Exempt from advance contributions shall be:
1. taxable persons, whose net income of sales for the preceding year does not exceed BGN 200 000;
2. newly constituted taxable persons for the year of their constitution, except those newly constituted as a result of a transformation under the Commercial Law.

The monthly advance contributions shall be made by the taxable persons that have formed tax profit for the preceding year.

The quarterly advance contributions shall be made by the taxable persons that have no obligation to make monthly advance contributions.

Determining the monthly advance contributions
The monthly advance contributions shall be determined on the grounds of the following formula:
ADVMONTHLY = ((DP x k)/12) x TR, where:
ADVMONTHLY is the monthly advance contribution;
DP is the declared tax profit for the year prior to the preceding year (when determining the monthly advance contributions for the period from 1 January until 31 March) or the declared tax profit for the preceding year (when determining the monthly advance contributions for the period from 1 April until 31 December);
k is the coefficient reflecting the changes in the economic conditions for the current year, this coefficient being approved by the Law on the State Budget of the Republic of Bulgaria for the respective year;
TR is the tax rate of the corporate tax.

Determining the quarterly advance contributions
The quarterly advance contributions shall be determined on the grounds of the following formula:
ADVQUARTERLY = TP x TR – ADVPAID,
where:
ADVQUARTERLY is the quarterly advance contribution;
TP is the tax profit from the beginning of the year until the end of the quarter for which the quarterly advance contribution is determined;
TR is the tax rate of the corporate tax;
ADVPAID are the advance contributions that have been paid from the beginning of the year until the end of the quarter for which the quarterly advance contribution is determined.

The monthly advance contributions shall be payable until the 15th day of the month they are paid for.

The quarterly advance contributions shall be payable until the 15th day of the month following the quarter they are paid for. No quarterly advance contribution is payable for the fourth quarter.