Bulgaria Artist Taxation- World Observatory on the Social Status of the Artist
Tax Status
Artists pay taxes under the Personal Income Tax Act, which allows them to deduct 50% of their expenses from the taxable income for the creation of works of art, science and culture, folk arts and crafts, and copyright royalties. Furthermore, taking into account the specificity of creative work, the legislation provides an opportunity for income averaging derived from creative work performed in the course of more than one year (e.g. the writing of a book), but not exceeding four years. Artists thus avoid the progressive annual income tax.
To encourage private persons and companies to sponsor the development of the arts and culture, the legislator has offered resident and non resident natural persons and legal entities a tax deduction up to 10% for donations for cultural purposes, as well as for conservation and restoration of historical and cultural monuments, or for grants (the tax deduction rate was increased from 5 % to 10% under amendments to the Corporate Income Tax Act adopted in the beginning of 2002).
