Bulgaria levies taxes on certain expenses.
The tax rate is 10% on the accrued expenses. Both the respective expenses and the applicable tax on them are deductible for corporate income tax purposes.
The following expenses are subject to tax on expenses:
Business Entertainment Expenses
The tax is levied on the gross amount of business entertainment expenses.
Benefits to the Personnel (“Social Expenses”)
Taxable expenses are expenses on fringe benefits provided in kind to employees, including:
No tax shall be levied on expenses on fringe benefits not exceeding the amount of BGN 60 per month per employee if certain conditions are fulfilled.
Expenses on fringe benefits, which are not provided in kind and which constitute income of a natural person, are taxed under the terms and according to the procedure established by the Income Taxes on Natural Persons Act.
Expenses Relating to Use and Maintenance of Company Vehicles for management purposes
The taxable amount for assessment on these expenses is the aggregate of all amounts for maintenance, repair and operation of vehicles, charged during the calendar year and prorated for management use.