Changes to the Corporate Income Tax Act for 2026

Corporate income tax in Bulgaria remains at 10% — one of the lowest rates in the EU, and that does not change for 2026. The changes taking effect concern procedural and technical aspects of applying the law, mainly connected with the adoption of the euro and alignment with the new VAT regimes.

Filing and paying in euro

From 1 January 2026, with the euro as the official currency, all public liabilities — including corporate tax and advance instalments — are declared and paid in euro at the official fixed rate of 1.95583. Liabilities arising before that date are also converted into euro when settled after 1 January 2026.

Advance instalments — the logic is unchanged

The obligation to make advance instalments continues to be based on net sales revenue for the year before last — above a threshold they are mandatory, below it they are voluntary. The deadlines are essentially unchanged: monthly or quarterly instalments, with the option of a corrective return by 15 November if the expected result differs materially.

Reliefs — the regime is unchanged

• Relief for hiring the unemployed.
• Relief for hiring people with disabilities.
• Relief for operating in municipalities with above-average unemployment.
• State aid for farmers where the conditions of the relevant regulations are met.

The interaction with the VAT changes

The new mandatory VAT registration threshold of 51 130 EUR of annual turnover, and the new small-enterprise regimes in force from 1 January 2026, do not change the corporate tax law directly — but they have an indirect effect. Companies moving between VAT regimes must align their accounting policy with their corporate tax reporting.

The global minimum tax — large groups only

Separately from the corporate tax act, Bulgaria applies the global minimum tax rules (Pillar Two) through a dedicated top-up tax law. It affects only very large multinational and domestic groups (with consolidated revenue above the 750m EUR threshold) and does not apply to small and medium-sized business, which stays on the standard 10%.

Conclusion

2026 brings no revolution in corporate tax, but the technical changes around the euro and the link to the new VAT regimes deserve attention in every company’s accounting and tax policy.

Practical steps for 2026

• Make sure your accounting software files and records correctly in euro at the fixed rate.
• Check that the advance instalment thresholds have been correctly converted into euro.
• Align your accounting policy with any change of VAT regime (small enterprise or general).
• At the annual close, check the treatment of 2025 liabilities settled after 1 January 2026.

Frequently asked questions