What โtax optimisationโ means in practice
Many small companies in Bulgaria pay more tax than they need to โ not out of bad faith, but simply because their accountant is not proactive. The standard practice is: receive the documents, record them, file the return. End of story.
At Fin Logic we work differently. Our philosophy: every euro paid unnecessarily in tax is a euro stolen from your business. So we do not wait for the year end โ we optimise continuously, every month, proactively.
The specific mechanisms we use
โCorrect depreciation of assets โ Many companies depreciate incorrectly, or do not know which assets qualify. A 20,000 EUR car, depreciated properly, is worth around 800 EUR of tax saving a year.
โDividend versus salary optimisation โ Structuring the directorโs remuneration correctly can save up to 2,000 EUR a year. The difference between a management contract, an employment contract and a dividend is enormous.
โDeductible training costs โ 100% deductible where the training is directly related to the business. Many companies never use it.
โEntertainment expenses โ Deductible up to 1% of revenue. A company with 100,000 EUR of turnover can deduct up to 1,000 EUR
โInvestment tax relief โ On the purchase of new assets in designated regions, the taxable base can be reduced by up to 100% under the Corporate Income Tax Act.
โVAT optimisation โ Timing registration and deregistration correctly, recovering input VAT, and the adjustments under Art. 79 of the VAT Act.
โRestructuring โ Splitting activities into separate legal entities can produce a significant tax saving. We advise on the structure.
Our approach: proactive, not reactive
Most accountants wait for the client to ask โCan I save anything here?โ. We do not wait. Every month we review your financial data, and if we find an opportunity we tell you. That is the difference between an accountant and a financial partner.
With CFO experience across 15 companies in 7 industries, our managing partner Ivan Georgiev has seen literally hundreds of different tax situations. That means we recognise the opportunities most firms miss.
When you need tax advice
- Before the end of the financial year โ to plan the final expenses and optimisations.
- On the purchase of a major asset (a car, equipment, property) โ to get the depreciation right.
- On a change of structure โ a new partner, or splitting the business.
- On planning a dividend โ to find the optimal distribution.
- On a tax audit โ preparation and representation.