- Sustainable and predictable policy with regarding tax rates
- Flexibilty approach
- Competitive rates of waste fees rates
GENERAL TAX POLICY
It has to be underlined that the biggest share of the tax burden in Bulgaria is centrally imposed, i.e. the local authorities have no power in the majority of the taxes and fees. However, there is a tendency for somewhat fiscal decentralization, meaning that in the long run the municipality might gain more power with respect to the taxes and fees.
With respect to nationally adopted tax rates, Bulgaria has one of the lowest corporate and personal income tax rates in Europe (10%). Corporate income from production activities in high unemployment regions is tax exempt. Costs of fixed intangible assets created through research and development are also deductible. In addition, Bulgaria applies EU customs legislation and has signed double tax treaties with 68 countries. In other CEE countries the income tax rates are noticeably higher. For example, in Romania personal income is taxed at 16%, while Central European countries such as Poland, Hungary and Czech Republic apply tax rates which vary from 15 to 18 %.
With respect to local taxes, currently in Bulgaria are two important rates that are defined by local authorities - namely the property tax and the waste fee rate.
PROPERTY TAX
The tax rate on residential property for Individu¬als and legal entities are 1,5 %o off the tax base of the property. For non-residential property legal entities pay 1,5 % of the higher between the ac-counting value and the tax base. The property tax in Kazanlak is among the lowest in the country, as well as in Central and Eastern Europe.
WASTE FEE
The waste tax is determinate by the Local Council on a year base. In the case of Kazanlak the waste fee of non-residential property in which business is carried out is determined according to the quantity of waste, according to the type and number of containers for storage and the frequency of waste collection. For this purpose the owner has to sign a declaration, in which are declared the necessary types and number of containers.
- Smaller containers /210 liters/ - € 399 per container/per year
- Bigger container /1100 liters/ - € 1 739 per container/per year
In addition to the above described fee, businesses also pay a fee for the maintenance of the cleanliness of the public areas at 0,96 % to the higher of the accounting value and the tax base. For the businesses, non-residential property located outside the boundaries of organized waste collection and refuse collection, a fee is collected for the disposal of municipal waste in landfills or other facilities for maintaining the purity of the public areas proportional the additional fee is 1,94 % to the higher of the accounting value and the tax base.
For non-residential property, outside the boundaries, owned by legal entities since 2020 the waste fee rate is 6 % of the higher between the accounting value and the tax base.