Global Daily Tax News, Bulgaria Withdraws 2026 Budget Law, (Dec 2, 2025)

The Bulgarian Government has withdrawn legislation for the implementation of tax changes announced in the 2026 Budget after protests in the nation's capital.

The Budget included the following commitments:

• Raising the withholding tax rate on dividends and liquidation proceeds from five percent to 10 percent under both the personal income tax and corporate tax laws;

• The introduction of new electronic reporting requirements on commercial outlets through National Revenue Agency-approved sales management software;

• Further increases to excise duties on tobacco products; and

• The introduction of more favorable depreciation rules for electric vehicles.

Further, from January 1, 2026, the pension contribution rate to the Public Social Insurance (PSI) Pension Fund was to increase by two percentage points, with a further one percentage point rise scheduled for January 1, 2028.