Share with your friends

Bulgaria: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 11 May 2020

The Bulgarian Government introduced a number of measures in response to the effects of the COVID-19 epidemic, including:

Corporate Income Tax Act

  • Deadline for declaring and payment of tax liabilities
    • The deadline for filing of the annual tax return under Article 92 of the Corporate Income Tax Act for 2019 and for the payment of taxes declared with it are extended until 30 June 2020.
    • The same deadline applies with respect to the filing of tax returns and payment of taxes related to (i) ancillary activities within the meaning of the Gambling Act, (ii) revenues of budgetary enterprises, and (iii) operation of ships.
  • Advance payments for corporate income tax for 2020
    • The approach with respect to calculation of the advance tax installments for 2020 and the due dates for their payment remain the same. The Act amends the procedure for declaring the advance tax installments which depends on the date of filing of the annual tax return for 2019, as follows:
    • If the annual tax return for 2019 was submitted before the Act came into force, advance installments will be made in the amount as declared, and if necessary, a declaration for changing the advance installments under Article 88 of Corporate Income Tax Act may be submitted under the general provisions of the law.
    • In case the annual tax return for 2019 is filed after the Act enters into force and before 15 April 2020, the advance payments will be made in the amount as declared.
    • Taxpayers who have not submitted the annual tax return for 2019 by 15 April 2020 are required to declare by that date the amount of the advance instalments for 2020 by filing an annual tax return, but completed only in the part for the calculation of the advance payments for 2020.
    • The advance payments declared with the annual tax return for 2019 may be changed (increased or decreased) by filing a declaration under Article 88 of Corporate Income Tax Act.


It seems that the deadlines for filing the VAT return and the terms for payment of the monthly VAT liabilities will not be extended. It is still not clear whether and in what cases sanctions and penalties or interest for delays will be waived. It is unlikely that the terms for regular VAT refund procedures will be affected.

Personal Income Tax Act

  • The deadline for submission of the annual personal income tax return and for payment of the annual tax liability for sole merchants and the persons, who are not registered as traders but are taxed as sole merchants is extended to 30 June 2020. The persons who are entitled to use a 5% deduction from their outstanding tax liability, can utilize it if their tax return is filed and the tax is paid until 31 May 2020.
  • The deadline for submission of the annual tax return for all other individuals remains unchanged: 30 April 2020. Five percent deduction upon meeting the respective statutory requirements may be used until 31 March 2020.

Local Taxes and Fees Act

  • A discount of 5% is granted to persons who have paid the real estate tax or the vehicle tax for the whole 2020 up to 30 June 2020. The Act does not contain specific provisions regarding the payment of the garbage collection fees for 2020.

Unchanged deadlines in the tax and social security legislation

  • Except for the explicitly envisaged changes for 2020, the Act does not change other deadlines and procedures for establishing, declaring, filing, securing and collecting public receivables under the Tax and Social Security Procedures Code, Customs Act, Value Added Tax Act, Corporate Income Tax Act, Personal Income Tax Act, Local Taxes and Fees Act, Social Insurance Code, Health Insurance Code, and the Gambling Act.
  • The above is notwithstanding the relief from import duties and VAT exemption on importation granted for goods needed to combat the effects of the COVID-19 outbreak on the basis of the Commission Decision of 3 April 2020.