Category Taxation in Bulgaria

Bulgaria To Implement Junk Food Tax

October 21, 2015 Taxation in Bulgaria

SOFIA – Chips, biscuits, coffee, and other allegedly unhealthy foods will soon face a tax hike of as much as 78 percent, as the government eyes a “junk food tax”.

On October 20th the Health Care Minister of Bulgaria resented a proposal for a new “junk food tax” aimed at improving health and lifestyles in the country while at the same time raising extra tax revenues.

The newly proposed tax will be levied on the sale of foods which are rich in added salt, sugar, caffeine, or hydrogenated fats.

The tax will be levied on foods fitting into any of the four categories, at a rate of 3 percent to 78 percent based on the category, with the highest rate being levied on foods which are rich in hydrogenated fats.

It was noted that the tax may see overlaps if a particular food item falls under s...

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Bulgaria to Inspect All Print Media Outlets

August 4, 2015 Taxation in Bulgaria

SOFIA – Accusations have arisen that the government of Bulgaria is using tax inspections to silence media outlets which do not support the government.

On August 7th the National Revenue Agency of Bulgaria announced that all print media outlets in the country will be undergoing an inspection their financial activities over the last five years, a move which has lead to accusations that the inspections are intended to punish the media outlets for their criticism of the current government administration.

According to the tax authority, a significant number of media outlets have not faced any tax audit for several years, and it was due time for authorities to look closer at whether all taxes and social security contributions have been paid in full.

Several months ago the tax authority issued ...

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Bulgaria Fights New Greek Tax

April 9, 2015 Taxation in BulgariaTaxation in Greece

SOFIA – Bulgaria is claiming that Greece is implementing a discriminatory tax, which unfairly targets some countries with low corproate taxes, and will cost Bulgaria as much as EUR 800 million per year.

On April 8th Annika Breidthardt, a spokesperson for the European Commission, confirmed that the Commission has received an official complaint from Bulgaria against Greece’s proposed withholding tax on transactions originating from Bulgaria.

In April 2015 the government of Greece proposed a withholding tax of 26 percent on transactions originating from Cyprus, Ireland and Bulgaria, as these countries are deemed to have “preferential tax regimes”.

The proposed tax is intended to help the government of Greece fight the occurrence of tax evasion in the country.

It is currently estimated ...

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Bulgaria Eases Gambling Tax

December 5, 2013 Taxation in Bulgaria

SOFIA – Bulgaria is slashing the tax obligations of gambling operators by up to two thirds in the hopes of wiping out illegitimate operators and encouraging the formation of more genuine providers.

On December 4th the members of the Parliament of Bulgaria voted on and approved several amendments to the national Gambling Act, in an effort to make the country a more attractive destination for obtaining a gambling operating license, while also tightening compliance in the industry, and raising the amount of tax revenues gathered from providers.

Currently businesses offering any form gambling products are obliged to pay a 15 percent tax on the revenues earned, however, under the amended rules, operators will be required to pay a one-off licensing fee of BGN 100 000 and a 20 percent tax on the...

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New Taxes in Bulgaria

November 16, 2012 Taxation in Bulgaria

tax on gamblingSOFIA – Bulgarians will soon feel the burden of extra taxes, as bank deposits and gambling revenues are brought into the tax net.

On November 15th the parliament of Bulgaria approved several amendments to the national Value Added Tax Act, which, amongst other changes, allows the VAT to be levied on interest earned from bank deposits and on the revenues of gambling operators.

From January 1st 2013 banks in Bulgaria will be responsible for withholding the 10 percent tax on interest earned from fixed term deposits its clients, and will also be charged with he task of transferring the collections to tax authorities.

It is expected that the bank tax should raise approximately BGN 120 million in the first year alone.

Supporters of the new regulations claim that through the tax wealthy individual...

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