Tax
Income tax at 20/32%, 15% corporate tax and 21% VAT
Personal income is taxed mainly at 20%, with a 32% band on higher earnings, administered by the State Tax Inspectorate. Corporate tax is generally 15%, and standard VAT is 21%.
Key rules
- Employment income is taxed at 20%, with 32% above a threshold.
- The standard corporate income tax rate is 15%, with reduced rates for small companies.
- Standard VAT is 21%.
Governing law
- Law on Personal Income Tax
- Law on Corporate Income Tax
Penalties and consequences
- Interest and fines for late or incorrect returns; criminal liability for evasion
In practice
Small companies with few employees and modest income can qualify for a reduced or even 0% corporate rate in their first year.