1 Republic of Bulgaria Eastern European Think and Act Tank NY, 24 April 2008 Presented by Valentin Stoev – Commercial representative, Bulgarian Consulate in NYC

2 Market access

3 Investment incentives in Bulgaria  10% corporate income tax after the 1, January 2007; 0% for manufacturing companies in areas with high unemployment  10% personal income tax, flat rate  Opportunity for R&D expenditure write-off  Depreciation of 2 years for computers and new manufacturing equipment  2-year VAT exemption for imports of equipment for investment projects over € 5 million, creating at least 50 jobs  5% withholding tax on dividends and liquidation quotas (0% for EU tax residents holding at least 15% of the Bulgarian company)  Up to 1 year minimum salary and reimbursement of social/health care security for employing young people and disadvantaged people through the Employment Agency

4 InvestBulgaria Agency InvestBulgaria Agency is the Government investment promotion arm, part of the Ministry of Economy and Energy. IBA services:  Comparative macroeconomic information  Legal advice  Data on operational costs  Assistance with site selection: regional information related to unemployment data, availability of skilled labor force, education level, infrastructure, foreign investors, industrial zones, free premises  Identification of potential suppliers, contract manufacturing or joint venture partners  Creating linkages with local university  Creating linkages with central and local governments  Information and provision of investment incentives