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6.5. Deduction of Cross-Border Payments and Non-Deductible Expenses

The following expense types are not deductible for Bulgarian tax purposes:

  • Expenses not incurred for the production of taxable profits
  • Any improperly documented expenses
  • Donations beyond the statutory cap
  • Lost inventory items, except by way of force majeure, natural loss, or expiration in normal amounts for the business type
  • Taxes that should have been paid by a third party
  • Output VAT charged as the result of a tax audit
  • Any penalties or fines