Bulgarian Withholding Tax Explained
Key Moments
- 00:01 – Introduction
- 00:17 – What Is Withholding Tax?
- 00:40 – Payments Subject to Withholding Tax
- 01:01 – EU Directives and Double Tax Treaties
- 01:20 – How to Apply Treaty or EU Exemptions
- 01:45 – Reporting and Payment Obligations
- 02:05 – Practical Compliance Tips
Short Summary
Bulgarian withholding tax applies when a Bulgarian company makes certain payments to foreign individuals or companies without a permanent establishment in Bulgaria. The Bulgarian payer is responsible for calculating, reporting and paying the applicable tax to the National Revenue Agency.
Dividends, royalties, interest and certain technical or management service fees may be subject to withholding tax. The standard domestic rates can sometimes be reduced or eliminated under an applicable double tax treaty or EU rules when the required conditions and documentation are in place.
Need Help with Withholding Tax in Bulgaria?
Contact ASB Accounting Services Bulgaria for professional assistance with withholding tax calculations, declarations, cross-border payments and double tax treaty applications. Our team can help you review the applicable rates, prepare the required documentation and stay compliant with Bulgarian tax rules.
Prefer reading or looking for more details? Read the article: Bulgarian Withholding Tax Explained for Entrepreneurs
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Email: ASB@AccountingServicesBulgaria.com