Taxation in Eastern Europe/Bulgaria Table

Maximum Straight-Line Depreciation Rates
Asset	Rate (%)
Commercial administrative buildings	3
Production premises	4
Installations	4
Machinery and equipment	20
Business inventory, including office equipment	25
Motor vehicles, excluding cars	8
Cars	20
Long-term intangible assets	20

Monthly Rates of Tax on Employment Income
Level of Monthly Income (Lv)	Rate Applicable to Level (%)

Up to 1,850.00	-
1,850.01- 3,000.00	20
3,000.01- 8,000.00	24
8,000.01- 15,000.00	28
15,000.01- 25,000.00	32
25,000.01- 50,000.00	36
50,000.01-150,000.00	40
150,000.01-300,000.00	45
Over 300,000.00	50

Annual Rates of Tax on Income from Sources Other Than Employment
Level of Annual Income (Lv)	Rate Applicable to Level (%)
Up to 22,200.00	-
22,200.01- 36,000.00	20
36,000.01- 96,000.00	24
96,000.01- 180,000.00	28
180,000.01- 300,000.00	32
300,000.01- 600,000.00	36
600,000.01-1,800,000.00	40
1,800,000.01-3,600,000.00	45
Over 3,600,000.00	50

Withholding Tax Rates for Treaty Countries
Country of Recipient	Dividends (%)	Interest (%)	Royalties (%)

Austria	-	-	-
Belgium	10	10	5
China (People's Republic of)	10	10	10a
COMECON countries	-	-	-
Cyprus	-	-	-
Denmark	5b	-	-
Finland	10	-	5c
France	5d	-	5
Germany	15	-	5
Indonesia	15	10	10
Italy	10	-	5
Japan	10b	10	10
Luxembourg	5b	10	5
Malta	-	-	10
Netherlands	5b	-	5
Norway	15	-	-
Spain	5b	-	-
Sweden	10	-	5
Switzerland	5b	10	-
United Kingdom	10	-	-
Zimbabwe	10e	10	10
a. The maximum effective rate is 7% on some royalties involving the use of equipment.
b. This rate applies when payee holds directly 25% or more of the payer. Otherwise, the rate is 15%.
c. Copyright royalties, including film royalties, are exempt.
d. This rate applies if payee holds directly at least 15% of the payer. Otherwise, the rate is 15%.
e. This rate applies if payee holds directly at least 25% of the payer. Otherwise, the rate is 20%.