W-8BEN-E for a Bulgarian EOOD (and W-8BEN for an ET): US–Bulgaria Treaty Guide (2026)
This article was created with AI assistance and has not been reviewed by a human editor. It is provided for general informational purposes only and does not constitute tax, legal, or financial advice.
AI-generated imageYour US client asked for a W-8BEN-E. Work your EOOD does in Bulgaria is not US-source income, so Part III stays blank. Article 7(1) at 0% is only for work done in the United States with no US permanent establishment. Portfolio dividends are 10%, not 15%. And an EOOD owned from outside Bulgaria usually cannot tick the ownership test.
This guide is for an ednolichno druzhestvo s ogranichena otgovornost (EOOD) that invoices US clients, licenses software, or holds US shares. It covers the ET, the 10% dividend rate, Line 14b, and the EIK on Line 9b. A sample PDF further down shows the claim case: developers performing services on site in the United States, with no US permanent establishment.
If you are an ednolichen targovets (ET) or a freelancer, you are an individual. You file Form W-8BEN in your own name: start the W-8BEN wizard. Work you do in Bulgaria is not US-source: Part II stays blank. Pay for work you do in the United States is claimed under Article 7(1) on Form 8233, not on Form W-8BEN. Article 3(1)(i) makes professional services business profits, so that Form 8233 claim cites Article 7, not 14. Article 14 of this treaty is Income from Employment.
If you prefer to skip the reading, you can start the W-8BEN-E wizard now. It asks whether the company directly holds at least 10% of the voting stock, and it notes that owners outside Bulgaria do not count toward Article 21(2)(e). In a few minutes you have a signature-ready PDF for $30.
Blank form or already filled in?
You can download the official, blank form from the IRS and complete it yourself — or get the same file already filled in by our wizard.
- Blank official W-8BEN-E (IRS, free): Download W-8BEN-E as a PDF directly from the IRS — for an EOOD, an OOD, or an AD.
- Blank official W-8BEN (IRS, free): Download W-8BEN as a PDF directly from the IRS — for an ET or a freelancer.
- Already filled in (5–10 minutes): W-8BEN-E for Bulgarian companies ($30) or W-8BEN for individuals ($5).
- The convention: US–Bulgaria Income Tax Treaty PDF on Treasury.gov, signed at Washington on February 23, 2007, with a protocol signed the same day. The protocol signed at Sofia on February 26, 2008 is Treaty-Bulgaria-Protocol-2-26-2008.pdf. Under Article 27, the withholding rates apply to income paid or credited on or after January 1 of the year after the convention enters into force.
EOOD, OOD, AD, or an ET?
Bulgarian company law uses more than one form, and US tax classification does not follow the local abbreviation one-for-one:
- Aktsionerno druzhestvo (AD), including EAD: An aktsionerno druzhestvo (AD), including a single-shareholder EAD, formed on or after January 1, 2007 is a per se corporation and cannot file Form 8832. An AD formed before January 1, 2007 becomes a per se corporation only from the date on which persons who were not owners of that AD as of January 1, 2007 own, in the aggregate, a 50% or greater interest in it, measured by vote or value. Until that date — including while interests move only among persons who were already owners as of January 1, 2007 — that AD remains an eligible entity and may file Form 8832.
- Ednolichno druzhestvo s ogranichena otgovornost (EOOD) or druzhestvo s ogranichena otgovornost (OOD): Not on the per se list. It defaults to Corporation because members have limited liability, and a different US classification is Form 8832. A single-member EOOD is not disregarded by default.
- Sabiratelno druzhestvo (SD), komanditno druzhestvo (KD), or KDA: An SD or a KD is a Partnership. A KDA defaults to Partnership because it has a member with unlimited liability.
- Ednolichen targovets (ET) or a freelancer: An individual, not a company. That person files Form W-8BEN, not W-8BEN-E. Work done in Bulgaria leaves Part II blank; pay for work done in the United States is claimed under Article 7(1) on Form 8233. Never cite Article 14 for these services.
The trap worth naming: many guides put 15% on portfolio dividends. Article 10(2)(b) of the US–Bulgaria treaty is 10% in all other cases. The 5% rate needs a company that owns directly at least 10% of the voting stock.
Chapter 3 still decides which form you file. Part III is where the article and the rate go.
Who actually needs to submit this form?
Any Bulgarian EOOD, OOD, or AD that receives payments from a US business and needs to document that it is not a US person:
- Services: An EOOD that invoices a US client. Work performed in Bulgaria needs the form but no treaty claim; work performed in the United States may need Part III.
- Royalties: A software licence, a film, a patent, a trademark, or know-how.
- Dividends or interest: A holding in a US company, or a loan to a US debtor.
What the payer withholds, and what the treaty actually changes
Without a submitted W-8BEN-E, the US payer generally withholds 30% of US-source FDAP income: dividends, interest, royalties, and pay for services performed in the United States. Services performed in Bulgaria and sales of goods carry no chapter 3 withholding, but the payer still asks for the form. Filing it is how the payer knows the company is foreign and, where there is a claim, which article and rate to apply.
Services performed in Bulgaria are foreign-source: no US withholding and no treaty claim, so Part III stays blank. Services an EOOD performs in the United States are business profits under Article 7(1): 0% only when the EOOD has no US permanent establishment, including the 183-day services permanent establishment in Article 5(8). An ET or a freelancer claims Article 7(1) for US work on Form 8233, not on Form W-8BEN. A software licence is a copyright licence under Article 12(3)(a) at 5%. Equipment rental is not a royalty. Ordinary interest is 5% under Article 11(2). Article 11(3) is 0% only in the cases in that paragraph. Trade credit and installment interest stay at 5%. Article 11(8), as amended by the February 26, 2008 Protocol, applies notwithstanding paragraphs 2 and 3. US-source interest that is contingent interest and is not portfolio interest may be taxed at up to 10%, including when the owner would otherwise have 0% under Article 11(3), such as a bank or a pension fund. A REMIC excess inclusion may be taxed by each State under its domestic law (Article 11(8)(c)).
Form W-8BEN-E, line by line, for a Bulgarian EOOD
The line numbers below match the current form (Rev. October 2021) for an operating EOOD, Active NFFE, with an owner resident in Bulgaria. Work done in Bulgaria leaves Part III (lines 14a, 14b and 15) blank. The sample shows the other case: the EOOD’s developers also perform services on site in the United States, it has no US permanent establishment (no fixed place of business, no dependent agent, and neither 183-day test of Article 5(8) is met), and it claims Article 7(1) at 0% for that US work.
| Line | What you enter |
|---|---|
| Line 1 | The legal name exactly as registered (e.g., "Vitosha Code EOOD"). |
| Line 2 | Country of incorporation: Bulgaria. |
| Line 3 | Leave blank unless a single-member EOOD has filed Form 8832 to elect disregarded status. That is not the default. |
| Line 4 | Corporation for an EOOD or an OOD. An aktsionerno druzhestvo (AD), including a single-shareholder EAD, formed on or after January 1, 2007 is a per se corporation and cannot file Form 8832. An AD formed before January 1, 2007 becomes a per se corporation only from the date on which persons who were not owners of that AD as of January 1, 2007 own, in the aggregate, a 50% or greater interest in it, measured by vote or value. Until that date — including while interests move only among persons who were already owners as of January 1, 2007 — that AD remains an eligible entity and may file Form 8832. Partnership for an SD, a KD, or a KDA. An ET does not use this form. |
| Line 5 | Chapter 4 (FATCA) status — almost always Active NFFE for an ordinary trading or services company. |
| Line 6 | The registered office in Bulgaria, in Latin letters (e.g., bul. Vitosha 15, Sofia, 1000). |
| Line 9b | The 9-digit EIK (BULSTAT), for example 123456786. Do not type a BG prefix. An individual or an ET on Form W-8BEN uses a 10-digit EGN, or an LNCh for a foreign resident, for example 8501011234. Do not put the ET’s EIK on Form W-8BEN. |
| Line 14a | Only when the company claims the treaty: Bulgaria. Blank for work done in Bulgaria. |
| Line 14b | Only when the company claims the treaty: Ownership and base erosion when the owner is resident in Bulgaria and Article 21(2)(e) is met. A German-resident owner or a US-resident individual does not count toward 21(2)(e)(i). Active trade under Article 21(4), derivative benefits under Article 21(3), or Subsidiary of a publicly traded corporation under Article 21(2)(c)(ii) are the other routes. |
| Line 15 | Only when the company claims the treaty. For services performed in the United States with no US permanent establishment, where neither 183-day test of Article 5(8) is met: Article 7(1), 0%, type of income Services, and the condition the wizard writes: "Enterprise lacking a permanent establishment in the US." |
| Part XXX | Signed by a manager or other authorized person, with capacity stated. The sample uses Georgi Ivanov. |
This reflects the Rev. October 2021 revision of Form W-8BEN-E. Cross-check the current IRS PDF before you submit.
Every field in the table above is filled in by our guided W-8BEN-E wizard.
Sample: completed W-8BEN-E for a Bulgarian EOOD
A filled example for a fictional EOOD whose developers perform services on site in the United States, with no US permanent establishment (neither 183-day test of Article 5(8) met), Active NFFE status, Ownership and base erosion on Line 14b, and Article 7(1) at 0%. For work done only in Bulgaria, Part III would stay blank.
Sample only — uses a fictional company for illustration. Example: Vitosha Code EOOD, bul. Vitosha 15, Sofia 1000, Bulgaria, EIK 123456786, Chapter 3 Corporation, FATCA Active NFFE, Article 7(1) at 0% for services performed in the United States with no US permanent establishment and neither 183-day test of Article 5(8) met.
The rates on Line 15
Each row states the condition. Work done in Bulgaria has no row: it is not US-source, so Part III stays blank. Do not cite Article 14 for a freelancer, and do not apply 15% to dividends.
| Income type | Article | Rate and condition |
|---|---|---|
| Services of an EOOD performed in the United States | Article 7(1) | 0% only if there is no US permanent establishment, including the 183-day services permanent establishment in Article 5(8). Work performed in Bulgaria: Part III blank. |
| Services of an ET or a freelancer | Article 7(1) | Work in Bulgaria: Part II of Form W-8BEN blank. Work in the United States: Article 7(1) on Form 8233, not Form W-8BEN. Never Article 14. Article 14 is Income from Employment. |
| Dividends — company owning directly at least 10% of the voting stock | Article 10(2)(a) | 5%, and not for RIC or REIT dividends |
| Dividends — all other cases | Article 10(2)(b) | 10% (not 15%) |
| Dividends to a Bulgarian pension fund | Article 10(4) | 0% only for a pension fund as Article 3(1)(m) defines it (established in Bulgaria, generally exempt from income taxation there, and operated principally to administer or provide pension or retirement benefits or to earn income for such arrangements), when the dividends are not derived from its trade or business nor from an associated enterprise other than such a pension fund |
| RIC dividends | Article 10(3)(a) | 10% under Article 10(2)(b), or 0% under Article 10(4) for a pension fund. Never the 5% of Article 10(2)(a) |
| REIT dividends | Article 10(3)(a) | 10% under Article 10(2)(b), or 0% under Article 10(4) for a pension fund, only in the three Article 10(3)(a) cases: an individual or pension fund holding not more than 10% of the REIT; a dividend paid on a publicly traded class and the owner holds not more than 5% of any class; or not more than 10% of a diversified REIT. Otherwise no treaty rate: leave the claim blank, and withholding stays at 30% |
| Interest | Article 11(2) | 5% under Article 11(2). 0% under Article 11(3) only for interest owned by Bulgaria, a political subdivision or local authority, its central bank, or an institution wholly owned by Bulgaria; by a Bulgarian resident on debt-claims guaranteed, insured, or indirectly financed by one of those bodies; by a Bulgarian financial institution, such as a bank or an insurance company, unless the loan is back-to-back or an arrangement economically similar to one; or by a Bulgarian pension fund when the interest is not derived from carrying on a business, directly or indirectly. Trade credit and installment interest stay at 5%. Article 11(8), as amended by the February 26, 2008 Protocol, applies notwithstanding paragraphs 2 and 3: US-source contingent interest that is not portfolio interest may be taxed at up to 10%, including for a bank or a pension fund that would otherwise have 0% under Article 11(3). A REMIC excess inclusion may be taxed by each State under its domestic law (Article 11(8)(c)). |
| Software, film, patent, trademark, or know-how | Article 12(2) | 5%, never 0%. A licence to use a copyrighted program is Article 12(3)(a). |
| Equipment rental | Article 7(1) or 20(1) | Not a royalty. With no US permanent establishment and no other US activity, a company leasing equipment in its trade cites Article 7(1), 0%, and any other lessor cites other income, Article 20(1), 0%. With a US permanent establishment or other US activity, there is no claim for that rent: Part III (Lines 14a, 14b and 15) of Form W-8BEN-E or Part II (Lines 9 and 10) of Form W-8BEN stays blank. |
| Other income | Article 20(1) | 0%, unless the income is attributable to a US permanent establishment (Article 20(2) sends it to Article 7) |
Article 5(8)(a) creates a services permanent establishment when services in the United States are performed by an individual who is present there for 183 days or more in any twelve-month period and, during that period, more than 50% of the enterprise’s gross active business revenues is income from the services that individual performed in the United States. That individual can be someone other than an employee or an owner. Article 5(8)(b) requires that the services are provided for 183 days or more in any twelve-month period for the same or a connected project, and only for customers who are residents of the United States or who maintain a permanent establishment there to which the services are provided. A project for a customer who is not a US resident and has no US permanent establishment does not meet Article 5(8)(b). When either paragraph applies, the EOOD has a US permanent establishment and the profit attributable to it gets no 0%. The wizard asks both tests before it writes Article 7(1).
Line 14b and Article 21
Limitation on Benefits is already Article 21 of the February 23, 2007 convention. Article 22 of that convention is relief from double taxation. The February 26, 2008 Protocol does not change the article number. It inserts a new paragraph 5 of Article 21 and moves the former paragraphs 5 and 6 to paragraphs 6 and 7. Ownership and base erosion is Article 21(2)(e). On at least half the days, persons resident in the same Contracting State as the company, and entitled under Article 21(2)(a), (b), (c)(i), or (d), must own at least 50% of the aggregate voting power and value. For a Bulgarian company only Bulgarian-resident qualified persons count. (a) An EOOD owned 100% by an individual resident in Plovdiv meets that ownership prong. (b) An EOOD owned 100% by an individual resident in Germany does not. Consider Active trade under Article 21(4), or derivative benefits under Article 21(3) when the owners are equivalent beneficiaries in the EU, the EEA, or a NAFTA country. (c) An EOOD owned 100% by a US-resident individual also fails the ownership prong. A US-resident individual does not count. Less than 50% of gross income, as determined in Bulgaria, may be paid as deductible payments to persons who are not residents of either State entitled under those subparagraphs, excluding arm’s-length payments in the ordinary course for services or tangible property. A payment to a US-resident individual is not base erosion. Dividends are generally not deductible and do not count. Article 21(3) is the derivative benefits test: at least 95% owned by seven or fewer equivalent beneficiaries, and the base-erosion clause. The Line 14b box is Company that meets the derivative benefits test. Article 21(4) is an active trade carried on in Bulgaria. The substantiality test has no numerical safe harbor. Do not import the Estonia or Malta ratios. Article 21(2)(c)(ii) is the box Subsidiary of a publicly traded corporation: at least 50% of the aggregate vote and value (and of any disproportionate class) owned, directly or indirectly, by five or fewer companies listed under Article 21(2)(c)(i), each intermediate owner resident in Bulgaria or the United States. Article 21(5) is a triangular rule and is not a Line 14b box. A competent-authority determination under Article 21(6) is the box Favorable discretionary determination by the U.S. competent authority received.
Questions people ask before they sign
Short answers for an EOOD or an ET. A fund or a financial institution needs an accountant, not a blog page.
Does an ET file W-8BEN-E?
No. An ET or a freelancer files Form W-8BEN with the owner’s EGN or LNCh, not the ET’s EIK. Work done in Bulgaria leaves Part II blank. Pay for work done in the United States is claimed under Article 7(1) on Form 8233, not on Form W-8BEN. Do not cite Article 14.
Do we fill Part III for work done in Bulgaria?
No. Services performed in Bulgaria are not US-source income, so there is no US withholding to reduce: lines 14a, 14b and 15 stay blank. Part III is for US-source income, such as services performed in the United States, dividends, interest or royalties.
Is the dividend rate 15%?
No. Article 10(2)(b) is 10% in all other cases, not 15%. Article 10(2)(a) is 5% only when a company owns directly at least 10% of the voting stock. That 5% rate is not for RIC or REIT dividends.
Can a German-resident owner tick ownership and base erosion?
No. Article 21(2)(e)(i) counts only residents of Bulgaria. A German-resident individual does not count. Consider Active trade under Article 21(4) or derivative benefits under Article 21(3).
Is installment interest or late interest 0%?
No. Interest on a deferred payment for goods, equipment, or services is 5% under Article 11(2). There is no 0% for trade credit.
Our AD was founded in 2003 — can it still file Form 8832?
An aktsionerno druzhestvo (AD), including a single-shareholder EAD, formed on or after January 1, 2007 is a per se corporation and cannot file Form 8832. An AD formed before January 1, 2007 becomes a per se corporation only from the date on which persons who were not owners of that AD as of January 1, 2007 own, in the aggregate, a 50% or greater interest in it, measured by vote or value. Until that date — including while interests move only among persons who were already owners as of January 1, 2007 — that AD remains an eligible entity and may file Form 8832.
What to do next
- Fill out your W-8BEN-E in the guided wizard: Start the W-8BEN-E wizard ($30).
- Are you an ET?: Use the W-8BEN wizard ($5). Work done in Bulgaria needs no treaty claim: Part II (Lines 9 and 10) of Form W-8BEN stays blank. Pay for US work goes on Form 8233.
Mistakes that get the form sent back
- Citing Article 14 for a freelancer: An ET’s US work is Article 7(1), claimed on Form 8233. Article 14 is Income from Employment.
- Claiming Article 7 for work done in Bulgaria: That income is not US-source. Part III stays blank.
- Putting 15% on dividends: Article 10(2)(b) is 10%, not 15%.
- Ticking ownership for a foreign-owned EOOD: Owners resident outside Bulgaria, including a US resident, do not count toward Article 21(2)(e)(i).
- Putting the ET’s EIK on Form W-8BEN: The individual uses an EGN or an LNCh. The EIK belongs on the company form.
- Typing a BG prefix: Line 9b is the digits only. BG plus the number is a VAT ID.
- Claiming 0% on a software licence: Article 12(2) is 5%, never 0%.