In Bulgaria corporate tax is only 10%, so is the income tax. This is one of the lowest levels in Europe.
Low tax countries
When people choose a place for development of their business, international companies pay attention to the tax rates in different countries.
Nowadays, many large Western corporations prefer to set up their business in a country with lower tax rates, so governments often underline among its competitors the lower taxes as advantage.
Each year the World Economic Forum makes report on global competitiveness according to the world economy.
In ordering of the countries are used different standards from the stability of the financial sector and banks to business conditions in each country.
One of the indicators is the tax burden. Respectively, the higher rates mean also lower competitiveness.
To be measured, the taxes in different countries are using the so-called ,,Total tax level’’ (,,total tax rate’’) of the World Bank.
The total sum of taxes is the sum of five different types of levies payable after accounting for deductions and exemptions – capital gains tax or corporation tax, social security, taxes on labor which are paid by the employer, property taxes and fees, etc.
In principle amount is obtained from all taxes on business, not on the workers.
Bulgaria is country which has the lowest direct taxes in the EU: 10% individual tax at 39.4% average rate for the most high-income groups in the EU.
The corporate tax rate of 10% corresponds to 30% EU average. But those lower rates should be compensating – this is done with the unseen, subversive indirect taxes. Their share in the tax burden in Bulgaria is 55.3% with an average of 34.5 percent for the EU.
In Bulgaria corporate tax is only 10%, so is the income tax. This is one of the lowest levels in Europe.
See one arrangement of the 29 countries with the lowest overall level of taxes, made this year:
1. Macedonia – 7.4%
2. Qatar – 11.3%
3. Kuwait – 12.8%
Recently it rejected the IMF proposal to introduce a capital gains tax to curb the fiscal deficit.
27. Denmark – 26%
This is one of the countries with solid social policy, but surprisingly falls among those with the lowest taxes.
28. Thailand – 26.9%
29. Bulgaria – 27%
In Bulgaria corporate tax is only 10%, so is the income tax. This is one of the lowest levels in Europe.
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