Withholding Tax

Information on the Bulgarian withholding tax...

With withholding tax are levied:

Dividends and liquidation shares which are distributed by local companies in favour of (i) foreign companies, except for the cases when the dividends are realized by a foreign company through permanent establishment in Bulgaria; (ii) Bulgarian companies that are not traders. In this case the tax rate is 5 percent.

With withholding tax is also levied the following income of foreign companies when this income is not realised trough a permanent establishment in Bulgaria:

• income from financial assets and transactions with financial assets issued by Bulgarian companies
• interests payment
• income from rent
• author and license fees
• remunerations for technical services
• remunerations under franchising and factoring contracts
• remunerations for managing and controlling a Bulgarian companies
• income from transfer of rights of immovable property, located in Bulgaria

The tax rate is set at 10 percent.

• Corporate Taxation
• Profits Tax
• Withholding Tax
• Taxation of Expenses
• VAT