{"id":4663,"date":"2025-10-17T08:39:04","date_gmt":"2025-10-17T08:39:04","guid":{"rendered":"https:\/\/leinonen.eu\/bgr\/?p=4663"},"modified":"2025-10-17T08:39:09","modified_gmt":"2025-10-17T08:39:09","slug":"christmas-bonuses-in-bulgaria","status":"publish","type":"post","link":"https:\/\/leinonen.eu\/bgr\/news\/christmas-bonuses-in-bulgaria\/","title":{"rendered":"Christmas Bonuses in Bulgaria: A Guide for Foreign-owned Businesses"},"content":{"rendered":"\n

Bulgaria\u2019s work culture<\/a> blends traditional and modern practices, placing high value on relationships, hierarchy, and teamwork. Christmas is widely celebrated in Bulgaria and, while not mandatory, employers are generally expected to show appreciation to employees during the holidays by allocating Christmas bonuses.<\/p>\n\n\n\n

In fact, a survey conducted in 2023<\/a> found that two thirds of Bulgarian employers do provide Christmas bonuses<\/strong> for their employees.<\/p>\n\n\n\n

In this article, Leinonen Bulgaria will explore the business, tax, and payroll implications of offering Christmas bonuses in Bulgaria.<\/p>\n\n\n\n

How do Companies Provide Christmas Bonuses in Bulgaria?<\/h2>\n\n\n\n

Christmas bonuses in Bulgaria may be provided in the form of a cash bonus or a non-cash gift, but cash bonuses are more common and well received. Many companies choose to provide employees with an additional month\u2019s salary as a Christmas bonus \u2013 this is known as \u201813th-month salary<\/a>\u2019. Non-cash gifts such as vouchers or gift baskets are also appreciated, but are typically given alongside a cash bonus, not instead of.<\/p>\n\n\n\n

Taxation of Christmas Bonuses in Bulgaria<\/h2>\n\n\n\n

How are Cash Bonuses Taxed?<\/h3>\n\n\n\n

Cash bonuses in Bulgaria are taxed in the same way as regular payroll. In practice, this means Christmas bonuses are subject to 10% Personal Income Tax (PIT) and social security contributions. To find out more on how cash bonuses in Bulgaria should be taxed, read Leinonen\u2019s previous article here<\/a>.<\/p>\n\n\n\n

How are Non-cash Gifts Taxed?<\/h3>\n\n\n\n

If a non-cash gift is a job related essential (e.g., a headset or laptop bag), they could be considered tax deductible for the company and recorded as \u2018office supplies\u2019. Other Christmas related expenses are not usually tax deductible, and may be recorded as \u2018representative\u2019.<\/p>\n\n\n\n

Sometimes, small gifts to employees (e.g., a branded mug) may be non-taxable, but Bulgaria does not have an official allowance for tax free gifts<\/a>. As the rules are not always clear in this area, it is important to seek support from an expert on tax in Bulgaria to avoid confusion and avoidable penalties.<\/p>\n\n\n\n

Are Christmas Expenses Deductible for Corporate Income Tax (CIT) Purposes?<\/h3>\n\n\n\n

As a general rule, Christmas expenses are not deductible for CIT purposes. To find out more on tax in Bulgaria, including regulations surrounding Personal Income Tax (PIT), CIT, withholding tax, Value Added Tax (VAT) and more, read Leinonen Bulgaria\u2019s previous article here<\/a>.<\/p>\n\n\n\n

Christmas Bonuses and Payroll in Bulgaria<\/h2>\n\n\n\n

How Should Christmas Bonuses be Disbursed for Payroll Efficiency?<\/h3>\n\n\n\n

Bonuses are processed through regular payroll in Bulgaria, so there are no additional obligations related specifically to bonuses. Christmas bonuses should be calculated and disbursed at least a week before Christmas to ensure they reach employees in time for the holiday.<\/p>\n\n\n\n

What Supporting Documentation is Required?<\/h3>\n\n\n\n