Taxes in BulgariaCorporate taxCorporate tax10%VATGeneral VAT rate20%Reduced VAT for hotel9%Employment taxesSocial costs (employer’s part) salary up to 2600 BGN/month*17,94%Social costs (employer’s part) salary over 2600 BGN/month0%Social costs (employee’s part) salary up to 2600 BGN/month13,34%Social costs (employee’s part) salary over 2600 BGN/month0%Personal income tax (withhold by employer)10%Personal income tax and social costs is applied for employees in the Bulgarian company. Social costs has a maximum level at gross salary of 2600 BGN/month. On the part of the gross salary that exceeds 2600 BGN/month no social costs are paid. Social costs is also reduced with 2,38% / 2,2% for employees born before 1960.*) 2600 BGN is approx 1300 EURNo benefit tax on company carsDividends taxDividends tax (individuals)5%Dividends tax (company from other EU country)0%Dividend taxes are paid by the company owners, to whom the didivends are distributed.