Regulatory Alerts2026-05-28
Law on Tax on Insurance Premiums
The Bulgarian National Assembly enacted this legislation to establish a 2% tax on insurance premiums received under contracts where the risk is located in Bulgaria, defining insurers and their appointed tax representatives as the liable parties. It mandates quarterly tax declarations and payments to the state budget, details the calculation of the tax base including adjustments for refunds, statutory fund contributions, and foreign currency conversions, and sets out procedures for tax representation by cross-border insurers. The law further prescribes administrative penalties for non-compliance, establishes accounting and record-keeping obligations, and incorporates successive amendments to align the tax framework with the Insurance Code and Bulgaria's adoption of the euro.