Personal Income Tax

A state direct tax imposed on the taxable income earned by individuals (natural persons) during the calendar year. It is regulated by the Personal Income Tax Act. The tax is paid by Bulgarian citizens regardless of whether they receive income domestically or abroad, as well as by foreign citizens who receive income from sources within Bulgaria. Taxable income includes remuneration from employment, income from non-employment relationships, rent, lease, sale of property, dividends, interest, royalties, and other sources. Individuals may reduce their tax liability through various allowances and deductions provided by the Personal Income Tax Act.