Bulgarian Parliament Approves Corporate Tax Cut For 2004

by Ulrika Lomas, Tax-News.com, Brussels

14 November 2003

In line with other Central and Eastern European governments, many of whom will be joining the European Union next year, it was announced on Wednesday that the Bulgarian parliament has approved a measure cutting corporate tax from 23.5% to 19%.

The tax cut will take effect on January 1 next year and is part of a larger tax package attached to the budget plans for 2004, which calls for economic growth of 5.3%, slightly higher than this year’s projection of 5%.

The move is an attempt by the government to attract further investment in the former eastern-bloc country, which has seen a steady rise in recent years, increasing over 9% in 2002.

Prime Minister Simeon Saxe-Coburg explained recently that the tax cut would have the effect of releasing an extra BGN150 million ($90 million) into the country’s economy.

“These are funds which will create new jobs, modernise manufacturing and make enterprises more competitive”, the Prime Minister (and former King) commented following governmental approval of next year’s draft budget.

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