The rate of tax on the expenses in Bulgaria is 10%. The tax on expenses is paid until the 15th day of the month succeeding the month in which the expense was charged.
Where the taxable person has overpaid tax on expenses or corporate income tax, the said tax may be deducted from the tax on expenses due. Where a tax due has not been paid within the due time period, interest is due pursuant to the Act on Interest on Taxes, Fees and Other State Receivables.
A final tax on expenses is levied on the following documented expenses:
– expenses for entertaining (protocol expenses) connected with the activity;
– expenses for social benefits provided in kind to workers and employees and to persons hired under management and control contracts; the expenses for social benefits provided in kind include also:
(a) expenses for contributions (premiums) for voluntary pension and health insurance and voluntary unemployment insurance and/or vocational training and/or life insurance and life insurance connected to an investment fund;
(b) expenses on food vouchers.
– the expenses related to operation of transport vehicles when used to service management operations.