Companies which accounted representative expenses are subject to tax 10%.
Representative expenses are considered:
– Costs associated with the activity of the company for example: organizing business events, buying food and drinks, corporate event, buying flowers and gifts, and more.
– Social costs for the staff and persons employed on contract management and control for example additional voluntary insurance, food vouchers and more.
– Costs related to the exploitation of vehicles for carrying out management activities.
According to Corporate Income Tax Act representative expenses are taxed at 10% on the total value of such tax shall be declared and paid in each financial year of the company.
It is important to note that the organization of congresses, conferences and other events of this type do not fall under the tax rules.
Accounting Services Bulgaria
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