Bulgarian tax residents are taxed on their worldwide income. Non-residents are taxed on their income from Bulgarian sources only, through a permanent establishment (PE) and/or via WHT, depending on the case (see the Branch income section).
In general, corporate income is subject to corporate income tax (CIT) at a flat rate of 10%.
Income earned by organisers of gambling games for which the bet is included in the price of a phone or other telecommunication service is subject to 15% alternative tax, applied on the increase in the price of the phone or other telecommunication service (i.e. the difference between the regular price of the service and the new higher price due to the gambling game). A fixed-sum tax is applied to the operation of gaming machines.
Online gambling games are exempt from the alternative tax (and are subject to standard CIT instead), as are a significant part of the other land-based gambling games (i.e. totto; lotto sports betting, including horse and dog racing; and betting on random events or related to the knowledge of facts).
Tonnage tax regime
A special alternative tax regime applies to the operation of commercial maritime vessels, as per their net tonnage, at a rate of 10%.
Local income taxes
There are no provincial or local government corporate income taxes in Bulgaria.