January 21 2021

Bulgaria Extends Regional Investment Aid Scheme

Source: IBFD Tax Research Platform News

On 19 November 2020, Bulgaria officially received permission from the European Commission (EC) to extend its domestic scheme providing regional investment assistance to companies in the form of a tax relief for the period from 1 January 2021 to 31 December 2021.

The scheme provides for the right of companies engaged in production activities in regions of Bulgaria that have reported an unemployment rate that is 25% higher than the national average rate, to be exempt from domestic corporate income tax (CIT).

Until now, the scheme has applied to the districts of Sofia, Blagoevgrad, Pernik and Kyustendil in accordance with Regulation (EC) No 1059/2003 of the European Parliament and the Council of 26 May 2003 establishing a common classification of territorial units for statistical purposes.

The permit for extension of the term of the scheme was published on the EC's website on 14 January 2021.

More information on the measures is available here and here.