Advance Corporate Tax Payments in Bulgaria – What You Should Know
Advance corporate tax payments are a common obligation for businesses in Bulgaria, but many owners are unclear about the rules ⚖️. In this guide we explain who is required to pay, how the installments are calculated, and why these payments are important for financial planning.
What Are Advance Corporate Tax Payments?
They are partial prepayments of the annual corporate income tax. Instead of paying the full amount at year-end, certain companies are obliged to make monthly or quarterly payments throughout the year, based on projected profits and past financial results.
Who Has to Make Them?
The obligation depends on company revenue from the previous year:
| Previous Year Revenue | Requirement |
|---|---|
| Below BGN 300,000 | No advance payments – tax is paid once at year-end |
| Above BGN 300,000 | Advance tax payments required (monthly or quarterly) |
How Are Payments Calculated?
- Payments are linked to projected profit for the current year
- Past year’s results are used as a benchmark
- Companies with higher revenues pay monthly, smaller ones pay quarterly 📅
At year-end, the payments are reconciled with the actual tax liability. Any overpayments are refunded or credited, while underpayments must be settled.
Why It Matters for Foreign Investors
Foreign entrepreneurs often overlook this obligation until notified by the Bulgarian tax authorities. Knowing the rules in advance helps you:
- Avoid penalties and late fees ⚠️
- Manage cash flow more effectively
- Build financial transparency and credibility
T&G Consulting – Here to Support You
T&G Consulting helps businesses calculate, plan, and manage advance corporate tax payments. Our services include:
- Accurate installment calculations
- Deadline monitoring and compliance support
- Tax planning strategies to optimize cash flow
We make compliance easier so you can focus on growth 🚀.
Advance corporate tax payments in Bulgaria are an obligation that should not be ignored. With the guidance of T&G Consulting, your business can remain compliant and financially stable.
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