Sofia Tax forms one of the most important sources of revenue for the municipality of Sofia. Tax in the city is levied according to the economic policy of Bulgaria. The tax policy of Sofia follows Bulgarian taxation norms.
It is the duty of the Sofia municipality to collect the Sofia tax. The citizens of Bulgaria have to pay the taxes on their income as an employee of a Bulgarian organization or even as a self-employed person. However, the foreign nationals working in Bulgaria pay tax only on their income in the country. Some of the most important taxes levied in Sofia are:
- Income Tax
- Sales Tax
- Road Tax
- Professional Tax
- Property Tax
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Tax in Sofia is deducted from the salary or income of an individual. The minimum tax in Sofia starts at 10%. It increases exponentially as the income of the individual increases. The maximum income tax is determined at 24%. There are different tax rates in Sofia for the companies or the employers. The Sofia corporate Taxes are levied at a flat rate of 15%.
The standard deduction rates at source in Sofia of royalties, interests and for paying the managers and the directors of a company are given below:
- Royalties - 15%
- Paying the managers and the directors of a company - 15%
- Interest -15%
The deduction rate of dividend in Sofia is 7%.
There are special taxes for insurance companies.
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