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Taxation of Expenses


A tax on expenses is levied on:

  • the representative expenses (those connected with the business' activity)
  • the social expenses (given to the employees in kind)
  • expenses for supplementary voluntary social and health insurances and for life assurances
  • vouchers for food (and similar expenses)

The rate of the tax on these expenses is 10 percent.

Such expenses (and the levied tax) are admissible for taxation purpose and used as deductions to the accounting financial result.

UK companies note: When the corporate taxes are defined, it is important to take into consideration the Convention for the avoidance of double taxation between the Republic of Bulgaria and United Kingdom.