Profit tax on the sale of property

Profit tax on the sale of property

Question:
Hello!
Our company / Ltd. / owns a property + building with Act 16 of 09.08.2013, which we want to sell to another company / Ltd. / worth BGN 489,000. The book value of the asset is BGN 422,000.00. How much tax do we have to pay?
Thanks in advance!

Answer:
Hello,
To begin with, we will assume that you are interested in what profit tax you will pay (and not local and notary taxes and fees). We will also assume that the quoted sale price does not include VAT (in any case, we assume that since the property is after 2013, you will not charge VAT under Article 45 of the VAT Act). And finally - we accept that the Company has no other income and expenses that would affect the profit.
Assuming the above circumstances, the tax you will pay is 10% * (489 000.00 - 422 000.00) = BGN 6,700.00.
We hope we have been useful to you!
Greetings!