Corporate tax – a flat tax at rate 10% which is charged on accounting profit converted with tax permanent and temporary differences. It is paid with annual equalization as of March 31 of the following year. The advance is paid in monthly or quarterly installments. Tax preferences can be used in cases of investments in areas with a high unemployment rate or when hiring unemployed or employed persons.

 Withholding taxes – levied on various types of income: dividends, sale of shares, sale of real estate, royalties, technical services and others paid by domestic persons to foreign legal entities. The rate is 10% on the total amount of realized income. Dividends and liquidation shares are taxed at the 5% tax rate. When applying the System for the Avoidance of Double Taxation /SIDDO/, these tax obligations can be reduced. Income from dividends and liquidation shares in favor of companies that are resident for tax purposes in the European Union are not subject to withholding tax. The tax rate is 5% for income from interest and royalties received by local legal entities, categorized as such, within the European Economic Community /in the general case it is 10%/.

 Expenditure tax – This direct tax is levied on representative expenses related to the activity; social costs provided in kind to persons hired under a contract for management and control, as well as costs related to the operation of vehicles when management activities are carried out with them.

 Alternative Taxes – Income from gambling activities, income of public enterprises and the activity of operating ships are subject to an alternative tax that replaces corporate tax.

 Personal Income Tax – Taxable personal income, excluding dividend and liquidation share income, is subject to a flat tax of 10%. The tax base of these incomes is formed by deducting contributions for compulsory social insurance, contributions up to a certain amount for voluntary insurance and expenses for certain types of donations up to a certain amount, according to the law. In Bulgaria, the income from: the sale of an immovable property acquired more than three years ago is not taxed; the sale of up to two real estates acquired more than five years ago; sale of movable property, with certain exceptions; disposal of financial instruments offered on regulated markets in Bulgaria and the EEA; compulsory social insurance in Bulgaria or abroad.

Mandatory insurance contributions - They are in the amount of approximately 30% of the gross amount of income. They are distributed between the employer and the employee in a ratio of 60:40. To determine the tax base, for taxing the income of individuals, the part of personal insurance contributions is deducted from the gross amount of income.

Insurance contributions to funds for 2014

• 12.8% for the "Pensions" fund

• 5% for SPC in "Universal Pension Fund"

• 0.4% – 1.1% for the "Work accident and occupational disease" fund

• 3.5% for "General illness and maternity" fund

• 1% for the "Unemployment" fund

• 8% for the "Health Insurance" fund