Taxation of gambling activities in Bulgaria
The organizers of gambling games in Bulgaria are not subject to corporate tax, but to the so-called alternative tax. The method of determining the basis of taxation and the deadline for submission of the declaration vary depending on the type of taxable person.
I. Gambling activity within the meaning of Section II – tax on gambling activities of lotto, betting games on results of sports competitions and horse and dog racing, betting games on chance events and bets related to guessing facts, including such organized from distance
Taxable persons under this Section are the organizers of gambling activities of Toto and lotto, betting games on results of sports competitions and horse and dog racing, betting games on chance events and bets related to guessing facts, including such organized from distance.
The basis of taxation is the value obtained for each bet, this rule also applies to bets on games organized from distance (games of chance organized by communications equipment, in which participants bet directly via the Internet).
The deadline for submitting the declaration and payment of tax is 7 days after the determination of the results of the game. The submission is carried out electronically with a qualified electronic signature.
The tax rate is 15% on the value of the bets for each game.
II. Gambling activity within the meaning of Section III – lotteries, raffles and Bingo and Keno lottery games with numbers, including such organized from distance
Taxable persons under this Section are the organizers of gambling games - lotteries, raffles and Bingo and Keno lottery games with numbers.
The basis of taxation, on which the final tax is charged, is the nominal value of the bet referred to in tickets, coupons and other means certification of participation in the gambling games. For lottery games organized from distance, the basis of taxation under Bulgarian corporate law is determined by bets made by registered participants.
The deadline for submission of the declaration and payment of tax is the 10th day of the month following the receipt of the certification for participation.
The tax rate is 15% on the basis of taxation.
III. Gambling activity within the meaning of Section IV – gambling activity of games in which the bet for participation is through the price of a telephone or another electronic communication service
Taxable persons under this Section shall be the organizers of gambling organized from distance in which the bet for participation is through the price of a telephone or another electronic communication service.
The basis of taxation for this type of gambling is the increase in the price of telephone or other electronic communication service.
The deadline for declaration is the 10th day of the month following the month in which the games are held.
The final tax is withheld and paid by the operator of the communication service and it is 15%.
IV. Gambling activity within the meaning of Section V - gambling activity from slot machine games and casino games
Taxable persons under this Section are the organizers of gambling activity with slot machines and casino games, including those organized from distance.
The tax on gambling activity under this Section is assessed in respect of the devices entered in the certificate of granted license and in exploitation:
- slot machines and/or virtual gaming machines in a gambling hall, and each gaming seat thereof, respectively;
- gaming tables and/or virtual gaming tables and slot machines and/or virtual slot machines in a casino, and each gambling seat thereto, respectively.
The size is specifically defined in the law per individual machines and gaming equipment per quarter.
The obligation to declare and pay the tax arises within the 15th day of the month, following the respective quarter.
Feature of levying this type of tax under the Bulgarian law is that the tax is payable in full for the quarter in which the license has been revoked or the organizer of gambling activity has ceased their business activity for a certain period.