Bulgaria has a relatively low tax burden compared to other European Union countries, with a flat tax rate for both individuals and corporations. The tax system in Bulgaria is regulated by the Tax and Social Insurance Procedure Code, which is administered by the National Revenue Agency.

Personal income tax is levied on all residents of Bulgaria, including foreign nationals who reside in the country for more than 183 days per year. The tax rate is a flat 10% on all income, including employment income, business income, and investment income. There are various deductions and credits available to reduce the tax liability.

Corporate income tax is levied on all companies and businesses operating in Bulgaria, including foreign companies with a permanent establishment in the country. The standard corporate tax rate is also a flat 10% on the net taxable income. However, there are various tax incentives available for certain industries and activities, such as the promotion of research and development.

In addition to federal taxes, there are also other taxes levied on businesses operating in Bulgaria, such as the value-added tax (VAT), which is currently 20%, and various excise taxes on certain products.

The tax year in Bulgaria runs from January 1st to December 31st. The deadline for filing personal income tax returns and paying any outstanding tax is usually April 30th of the following year, while the deadline for filing corporate tax returns and paying any outstanding tax is generally March 31st of the following year.

Payments can be made online or in person at designated banks. Penalties for late payment or non-payment of taxes can range from fines to imprisonment, depending on the severity of the offense. Additionally, interest may be charged on any outstanding tax liability.

Overall, taxation in Bulgaria is relatively straightforward and transparent, with a low tax burden compared to other European countries. It is important for taxpayers to consult with local tax advisors or government authorities to ensure compliance with the relevant tax regulations.