CAPITAL TAXATION. ECOLOGICAL LEVIES. EXCISE DUTY
Taxes on Capital
Except as mentioned above, no specific taxes are charged on the capital of businesses or their net worth or on their assets. In particular, no capital duties or material stamp duties are payable on the incorporation of a Bulgarian company or on its capital or on subsequent contributions to the capital.
The packing charge is levied on the import of packed products or on the sale of locally manufactured packed products on the Bulgarian market. The charge is collected for the provision of the public services related to management of packing waste.
The charge is not payable if the importer/ manufacturer has put in place a proper system of management and recovery/recycling of the packing waste.
A tax warehouse is the place where excise duty goods are produced, stored, –received or sent by traders under the term of delayed excise duty payment. Certain luxury products, as well as certain other goods listed in law are subject to excise duties. Excise duties are payable as one-time consumption tax on the import of dutiable products in Bulgaria, or on the first sale of locally manufactured products in Bulgaria by their manufacturer.
The following main categories of products are subject to excise duties:
Coffee and extracts from coffee are not subject to excise duties.
Excise duties are normally charged as a flat amount per measurement unit for the respective product (BGN per piece/ton/liter, etc.).
Exports are exempt from excise duties.
Where excise duties have been paid for products that are subsequently exported, a refund may be received. Where excise duties are charged on raw materials with a content of alcohol which have been used for production of dutiable liquors or non-dutiable food products or medicines, a refund may be claimed for the duties paid on the row materials.
Bulgaria applies the customs legislation and the Common Custom Tariff of the EU.
Custom duties on imports from non-EU countries are usually percentage rates calculated on the basis of the customs value (the transaction value increased by certain costs). Reduced or even zero duty rates apply on imports from countries granted preferential tariff treatment by the EU. In addition, the duties for certain imports can be suspended upon certain action of the businesses.Goods can be imported in Bulgaria under custom procedures with economic impact – customs warehousing, inward processing, processing under custom control, temporary importation, outward processing.