Thin Capitalization Rules and Treatment of Bad Debts in Bulgaria

2020-10-05T12:14:50+03:00May 11th, 2011|Accounting and Reporting|

Bulgarian tax legislation provides thin capitalization rules, which may restrict the tax deductibility of interest expenses if debt to equity ratio of a company for a particular tax period exceeds three to one. The restricted interest costs may be carried forward and utilized against the taxable profit of the company [...]