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Bulgaria Plans New Corporation Tax Break


14/10/2013

Bulgaria's Government has announced plans to expand a tax break for manufacturing employers based in areas of the country with high unemployment. Currently, companies based in areas in which unemployment is 35 percent higher than the national average do not have to pay corporation tax, and the new break would lower this threshold to 25 percent while introducing new conditions.

Under the plans, an eligible company must have at least ten employees, and at least half must be involved directly in the manufacturing process. Further, at least 30 percent of the employees must have their permanent residence in one of the municipalities covered by the concession.

The exemption is being introduced through changes to Bulgaria's Corporate Law, which the Government has now submitted to Parliament. If accepted, the move will then have to be approved by the European Commission.

www.taxnews.com

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