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Amendments to the Corporate Income Taxation Act

December 19, 2022

Amendments to the Corporate Income Taxation Act


In State Gazette, issue 99 of 13 December 2022 a Law on Amendment and Supplementation of the Corporate Income Taxation Act (CITA) was promulgated. The most significant changes are related to:

1. Introduction of a temporary solidarity contribution

The law introduces an obligation for payment of a temporary solidarity contribution by the companies and the permanent establishments (incl. branches) of foreign persons that perform activities in the sectors of crude oil, natural gas, coal and oil processing on the generated excess profits determined as per Regulation (ЕU) 2022/1854. This contribution is due at the rate of 33% and is calculated on the excess of more than 20% of the tax profits for years 2022 and 2023 over the average tax profit for the period 2018 – 2021. The contribution shall be declared with the annual tax return under Art. 92 CITA and shall be paid within the terms for payment of corporate income tax. The liable persons can make (but are not obliged to make) advance payments for the contribution. The amount of the contribution is a tax-deductible expense for corporate income tax purposes.

The solidarity contribution is a public liability and shall be collected under the procedure for collection of state receivables.

These provisions enter into force as of 8 October 2022.

2. Remission of corporate income tax

Amendments have been made in relation to the remission of corporate income tax under Art. 184 CITA with respect to investments in high-unemployment regions (more than 25% over the average for the country). The changes are related to:

  • The scope of the entities that may benefit from the remission (micro-, small and medium sized enterprises);
  • The sectors for which such remission is not available. In this connection the Additional provisions of CITA are amended with new definitions of the excluded sectors;
  • The terms for which the remission is available and the terms in which the remitted corporate income tax shall be invested. All terms have been shortened to 3 years.
  • The remission under this scheme may be benefitted from until 2027 including. Entities that presently benefit from the tax remission are allowed to avail of the benefit for year 2022 as well, in case application form is submitted in the period 01. – 31.05.2023, approval by the Bulgaria Invest Agency is received until 30.06.2023 and the remission conditions are met. Remission of advance CIT installments is not allowed until positive opinion of European Commission is issued on permissible state aid.
  • In connection with the condition for lack of public liabilities to apply the remission of corporate income tax, Art. 167 CITA was amended with a new para 2, according to which the condition is complied with if as at 31 December of the respective year the liabilities are not reflected in the tax and social security account of the tax liable person with NRA or they are not presented for enforceable execution to NRA.

3. State aid for farmers

The term for using the tax benefit representing state aid for farmers has also been prolonged and the latter can be applied for year 2023 as well subject under the condition of notification before the European Commission.  


The law enters into force on 1 January 2023 with the above-mentioned exception regarding the temporary solidarity contribution.



This material is not exhaustive, but rather has general information nature and does not constitute specific advice or consultation. Should you have questions, do not hesitate to contact us at Tel. + 359 2 9433700, Fax + 359 2 9433707, e-mail: or at the following address: 1504 Sofia, 38, Oborishte Street.

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