Bulgaria Insurance Premium Tax

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Find out more about IPT.

The Bulgarian law for Insurance Premium Tax passed its last Parliament reading in November 2010.  Implementation date: 1st January 2011.

Basis of Bulgarian IPT Calculation

The basis for the IPT calculation is the premium, without deductions, and all other amounts paid to the insurer.

Bulgarian IPT Liability

The insurer is liable for the tax calculation and payment. EEA insurers operating on the Freedom of Services basis may need to appoint a local representative in Bulgaria.  This representative must keep detailed records of all insurance policies written by the carrier.

IPT Bulgarian Rates

Principal Bulgarian IPT rates include:

  • Non Life / Property & Casualty 2%; 
  • Life exempt; 
  • International Cargo exempt; and
  • Reinsurance exempt.

There are many of variations to the rates above. 

Bulgarian Parafiscal Charges

At present, there are no Parafiscal Charges for non-resident insurers.

Payments of Bulgarian Insurance Premium Tax

Bulgarian IPT is liable upon receipt of the cash premium.  Payment and reporting of taxes is split between monthly and quarterly.

Find out more about IPT.