Bulgaria advances proposed 33% sector windfall-profit levy

First reading does not make the levy operative

The official bill record identifies the Council of Ministers as sponsor, records submission on 5 November and committee consideration on 10 November, and marks the bill as adopted at first reading on 11 November. Amendments may be submitted before second reading until 18 November. The measure must still complete the remaining parliamentary and promulgation stages, so current corporate-tax payments and returns are unchanged.^[1]

The proposal targets selected sectors

The Finance Ministry’s budget material describes the levy as applying to banks, insurers and reinsurers, telecommunications companies, currency-exchange businesses, fast-credit companies and traders operating at least five food-retail locations, including grocery stores, supermarkets and hypermarkets. Groups should test the actual Bulgarian entity and activity rather than infer scope from group-wide operations.^[2]

A six-year reference period would drive the calculation

Government materials describe a 33 per cent tax on 2027 excess profit using average annual taxable profit for 2020–2025 as the reference. They also propose monthly advance payments during 2027. The reviewed sources do not establish how loss years, reorganisations, short periods, acquisitions, disposals or mixed-sector operations would affect the average or the excess-profit calculation.^[2]

Part of the levy could support reserves or investment

The budget plan proposes that 30 per cent of the levy be assigned to regulatory capital buffers or reserves where these are required. For affected businesses without such mandatory reserves, the amount would instead support new tangible or intangible fixed assets connected with the principal activity. Final eligibility, timing, recapture and evidence conditions remain dependent on the enacted text.^[2]

Model the exposure without changing filings

Potentially affected groups should preserve 2020–2025 taxable-profit reconciliations, identify sector and food-location facts, model the 2027 charge and assess liquidity for possible monthly advances. They should separately track capital-buffer or investment evidence. No current return, payment instruction or tax provision should be changed solely because of first-reading passage; the second-reading text, final calculation rules, commencement, filing route and payment dates require confirmation.^[1][2]