While Bulgaria is keeping its standard 10% nominal CIT rate, starting 1 January 2024, Bulgarian entities in scope of the so called global minimum tax will be subject to a minimum effective tax rate of 15%.
The law implementing the EU Global Minimum Tax Directive was finally voted by the Bulgarian Parliament on 12 December 2023.
Ever since the publication of the draft bill in September 2023, the key debate was around some important reliefs allowed under the EU Directive, that Bulgaria refused to introduce. After strong reactions from the business, the Parliament granted at least a partial relief for capital investments in fixed assets in Bulgaria.
The complex Pillar Two legislation will impact many large businesses in Bulgaria. Companies should prioritize the analysis of the financial and administrative impact of the new rules on their business organization.
