Lyudmila Petkova
Amendments to the Corporate Income Tax Act, providing for a one-off tax of 33 per cent on the excess profits of companies in certain sectors of the economy, were approved at first reading by the Bulgarian Parliament’s Budget and Finance Committee with 13 votes in favour, 8 against and 1 abstention.
The one-off tax will apply to banks, insurance companies, food retailers with net sales revenue of at least €5 million for 2026, telecommunications companies, currency exchange bureaux and companies providing quick loans.
These sectors account for around 60 per cent of the excess profits accumulated in the country, according to Deputy Finance Minister Lyudmila Petkova, as reported by the debati.bg portal.
The draft legislation does not alter the corporate tax regime, and this measure does not affect the taxation of standard profits.
According to Lyudmila Petkova, the temporary mechanism is aimed at redistributing extraordinary profits accumulated during a period of economic uncertainty by companies in certain sectors.
The legislative changes provide that 30 per cent of the tax may be channelled towards specific purposes, such as investment or the creation of reserves.
Petkova stated that, following the reallocation of 30 per cent of the tax, the impact on the budget is expected to reach €800 million. The one-off tax will apply in the 2027 financial year.
This story was translated with the assistance of artificial intelligence.
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