Promulgated, State Gazette No. 115/05.12.1997 (effective 01.01.1998)



Article 6

(1) The following persons shall be taxable according to the procedure established by this Act:

1.any resident juristic person;

2.(Amended, SG No. 153/1998 & No. 105/2000) any resident juristic person, which is not a merchant, where carrying on business or letting movable and immovable property;

3.(Amended, SG No. 119/2002) any public-financed enterprise, where carrying on business;

4.(Amended, SG No. 119/2002) any resident unincorporated association and any social insurance fund established in pursuance of Article 8 of the Compulsory Social Insurance Code;

5. any non-resident juristic person, where carrying on business within Bulgaria, inter alia through a permanent establishment;

6. any non-resident unincorporated association, where carrying on business within Bulgaria, inter alia through a permanent establishment.


Article 23


(3) (Amended, SG No. 61 & No.119/2002) For taxation purposes, the following items shall be deducted from the financial result (accounting profit or loss):

1. any sum donated to an amount not exceeding 10 per cent of the positive financial result before adjustment for taxation purposes, provided that the said donation was made for the account of the reserves or of the retained profit for prior accounting periods and where in favour of:

(a) any educational establishments, health-care and medical-treatment facilities and any public-financed enterprises;

(b) any juristic persons, which are not merchants, with charitable, social, environmental, medical, scientific-research, educational, cultural and sports objects;

(c) any religions lawfully registered in Bulgaria;

(d) any funds providing assistance to disabled persons or relief to victims of natural disasters;

(e) the Bulgarian Red Cross;

(f) any assistance to the socially disadvantaged, disabled persons, handicapped or parentless children;

(g) restoration and conservation of any historical landmarks and cultural assets;

(h) any cultural institutes or for the purposes of cultural, educational or research exchanges under agreements whereto the Republic of Bulgaria is a party;

(i) any non-profit corporations, registered in the Central Register of Non-profit Corporations for pursuit of public benefit activities;

(j) any scholarships instituted and provided for the instruction of schoolchildren and students at Bulgarian schools;

(k) any municipalities;


Article 35

(Amended, SG No. 105/2000)

Any expenses on parties and entertainment, as well as on gifts which do not bear the trade name or the trade mark of the taxable person, any donations and sponsorship accounted for as expenses, shall attract a final tax.