Category: Bulgaria
Bulgaria: Introduction Of Mandatory Transfer Pricing Rules In Bulgaria
New law hits taxpayers. ... - Continue reading
EU Advocate General considers Bulgaria’s refusal to exempt dividends paid to a Gibraltar companies from withholding tax
The Advocate General (AG) in an opinion issued 24 October (Case C-458/18) stated that a company incorporated in Gibraltar and subject to Gibraltar corporation tax cannot be considered to be a “company of a Member State” within the meaning of the parent-subsidiary directive (Directive 2011/96). ... - Continue reading
Bulgarian mandatory transfer pricing documentation rules enacted
A new law introducing mandatory transfer pricing documentation in Bulgaria was officially published in the State Gazette in early August. ... - Continue reading
Bulgaria: Bulgaria Amends VAT Legislation; Changes Affect A Wide Range Of Sectors
The VAT rate in Bulgaria has remained unchanged at 20% for many consecutive years. Recently, there has been a lot of debates on the future possibility of amending the VAT rate for certain food products as well as medicines and books to a rate somewhere in the range between 3% and 5%. ... - Continue reading
Pakistan, Bulgaria sign double taxation treaty
ISLAMABAD: Pakistan and Bulgaria on Tuesday signed an agreement to get rid of double taxation and cooperate in preventing tax evasion as a state delegation from the European Union member country concluded its two days visit. The Federal Board of Revenue (FBR) Director General and Deputy Minister of Economy Bulgaria… – Continue reading
Greece Raises BEPS Concerns With Bulgaria
The heads of the Greek and Bulgarian tax authorities have met to discuss ways in which bilateral cooperation can be boosted with a view to reducing levels of tax avoidance and evasion, particularly with respect to Greek companies shifting profits to Bulgaria. “The major issue of tax avoidance by Greek… – Continue reading
Bulgaria and Greece step up exchange of information to combat tax evasion
The head of the revenue agencies of Bulgaria and Greece have held talks on continuing and deepening co-operation on exchanging information and countering tax evasion, the National Revenue Agency in Sofia said on January 22. Bulgaria’s National Revenue Agency head, Galya Dimitrova, and her Greek counterpart Georgios Pitsilis discussed issues… – Continue reading
Bulgarian Presidency Outlines EU Tax Plans
The “fair and efficient” taxation of corporate profits and the fight against tax avoidance and evasion through enhanced administrative cooperation are among the priorities of the new Bulgarian presidency of the European Union, which commenced on January 1, 2018. The recently released program of the Bulgarian presidency states that it… – Continue reading
Bulgaria Requires CbC Reports By Year End
Bulgaria has said that multinationals covered by the country’s new transfer pricing country-by-country reporting regime should submit their first report by December 31, 2017. Through Order 3LIY-1410, Bulgaria’s National Revenue Agency has newly set out the rules concerning country-by-country documentation, including who the reporting obligations apply to and how to… – Continue reading
Lukoil involved in tax evasion case in Romania
Romanian prosecutors of the Anti-Organized Crime Directorate (DIICOT), the Bacau office, carried out searches in Bucharest and six counties last Friday, in a tax evasion case with a damage of over RON 9 million (EUR 1.9 million), which involves the legal representative of Lukoil Romania. The defendants allegedly built four… – Continue reading
EU Takes Legal Action Against Portugal, Two Others on Tax Deals
The European Commission launched legal proceedings against Portugal, Bulgaria, and Cyprus for not adopting, in their national laws, European Union legislation requiring all EU countries to exchange tax rulings granted to multilateral companies. The legislation was adopted in the wake of the 2014 LuxLeaks scandal that revealed more than 100… – Continue reading
European Commission warns Bulgaria to get into line on tax rulings, anti-trust damages actions rules
Bulgaria is among European Union countries that the European Commission has sent a reasoned opinion because of its failure to communicate the transposition of new measures on the automatic exchange of tax rulings between EU tax authorities. The step was announced by the European Commission on July 13, among its… – Continue reading
Pakistan, Bulgaria sign accord to avoid double taxation
Pakistan and Bulgaria on Wednesday signed the Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income (ADTA) after the conclusion of second round of negotiations in Islamabad. The ceremony was overseen by Federal Board of Revenue Chairman Dr Muhammad Irshad and Bulgaria… – Continue reading
Draft Bulgarian tax law reflects EU legislation on mandatory automatic exchange of tax information
At the end of March 2017, the Ministry of Finance called for public discussion on a draft bill (the “Bill”) amending the Bulgarian Tax and Social Insurance Procedural Code (the “Code”). The Bill seeks to improve administrative cooperation in the Bulgarian tax sector. The first set of amendments relates to… – Continue reading
Can Pay, Won’t Pay: Tax Evasion, Profit Shifting Rife in Central, Eastern Europe
The LuxLeaks and Panama Papers scandals aroused shock and outrage the world over. However, reaction from Central and Eastern European statesmen and citizens was decidedly more muted. A new report has suggested profit shifting and tax dodging by businesses in the region is endemic – perhaps accounting for the lack… – Continue reading
Investment under threat
It seems that our tax system is quite the topic of conversation. It has even been called “not European”, “not social” and “a harmful tax practice”. Indeed. The idea that there is some moral code that can be called ‘European’ is as absurd a notion as any I have ever… – Continue reading
HUNGARY COULD BE A CORPORATE PROFIT TAX HAVEN IN THE EUROPEAN UNION
The new 9 percent flat corporate profit tax – to be introduced 1st of January 2017 – will put Hungary in a very good position in the international race for investments as Hungary will offer even better conditions than Ireland and Cyprus, which are both often regarded as the European… – Continue reading
EU Mulls ‘Substance Test’ to Determine Zero-Rate Tax Havens
European Union member countries are considering a “substance test” to determine whether a country or jurisdiction with a zero corporate tax rate qualifies as a tax haven that doesn’t reflect “real economic activity.” After a host of EU member countries rejected in early November the use of a zero corporate… – Continue reading
Common Base Could End EU Patent Box, Transfer Pricing Disputes
Adoption of legislation for a common consolidated corporate tax base by 27 EU member states would resolve current patent box conflicts and end transfer pricing disputes that cost multinational companies hundreds of millions of dollars in double taxation, according to EU and industry officials. Speaking at a Nov. 15 conference… – Continue reading
Greece to Seek Help from Bulgaria, Cyprus to Find Suspected Tax Evaders
Greece intends to sign agreements with Bulgaria and Cyprus which will allow Athens to look into suspected tax evasion by Greek-owned companies registered in the two countries, Greek newspaper Kathimerini has reported. The closer inspection of Greek-owned companies registered in Bulgaria and Cyprus will aim to find out whether they… – Continue reading
Bulgaria adopts controversial amendments to the “Offshore Companies Act”
On 15 June 2016 the Bulgarian Parliament adopted long discussed amendments to the so called “Act on Economic and Financial Relations with Companies Registered in Jurisdictions with Preferential Tax Treatment, their Related Parties and Actual Owners” (the “Offshore Companies Act”, or the “Act”). The Act was adopted in 2014 and… – Continue reading
Bulgarian Parliament amends law on offshore companies
Bulgarian MPs passed at second reading on June 15 a bill easing ownership restrictions on offshore companies, amending a law that was adopted in December 2013. Under the amended law, which will go into effect on July 1, corporate entities registered in tax havens will be allowed to hold up… – Continue reading
Liberia: Africa’s unknown tax haven with much to lose
As world leaders consider what to do about the revelations emerging from the Panama Papers, Liberia’s government will be worrying about the fall-out that may cross the Atlantic Ocean from the affair. The European Union has announced it will be creating a new “tax haven blacklist”, to be released by… – Continue reading
Bulgaria definitively removes Gibraltar from ‘tax haven’ list
Bulgaria has definitively removed Gibraltar from its ‘tax haven’ list following intensive lobbying by Albert Isola, Minister for Financial Services, and the Gibraltar Finance Bulgaria team. This change has been reflected in the updated lists published on the European Commission website under ‘Tax good governance in the world as seen… – Continue reading
UK Tax Treaties With Croatia, Bulgaria In Force
The UK tax authority, HM Revenue and Customs (HMRC), has announced that new double tax avoidance treaties with Bulgaria and Croatia have entered into force. The 2015 UK-Bulgaria double tax agreement was signed on March 26, 2015, and replaces the former 1987 treaty. It generally limits the withholding tax rate… – Continue reading
UK – Bulgarian DTA entered into force
On January 8, 2016 the UK HM Revenue & Customs issued a media release announcing that on December 15, 2015 the Convention between the United Kingdom of Great Britain and Northern Ireland and the Republic of Bulgaria for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with… – Continue reading
IP BOX: Italian and European Legal Framework
On 22 December 2014, the Italian Parliament approved the Budget for 2015.40 Among other measures, the Law introduces the possibility of an exemption from corporate income tax (IRES, generally levied at 27,5%) and local tax (IRAP, generally levied at 3,9%) on income derived from qualifying intangible assets (such as patents,… – Continue reading
Blacklisted HK: The Italian Case
More good news for Hong Kong before the end of 2015: Italy decided to remove Hong Kong from its national blacklist on November 30, 2015. Italy ratified a comprehensive agreement for the avoidance of double taxation (CDTA) signed with Hong Kong on June 18, 2015. Facilitating an early removal of… – Continue reading
13 States Sign Up To OECD’s New Tax Info Exchange Standard
Thirteen jurisdictions signed the OECD Multilateral Competent Authority Agreement (MCAA) at a meeting on October 29-30, 2015, in Barbados. In joining the MCAA, the territories commit to automatically exchange tax information with other nations’ tax authorities under the OECD’s new tax information exchange standard, the Common Reporting Standard. A total… – Continue reading
Bulgarian Offshore Companies Act amendment seeks to ease restrictions
A newly introduced amendment to the Bulgarian Offshore Companies Act (the “Act”) will bring significant changes to investment opportunities for offshore companies. If the Bulgarian Parliament adopts the amendment within the next month, the amended Act is expected to enter into force in the beginning of 2016. The proposed amendments… – Continue reading
GLOBAL TAXPAYERS CAN EXPECT TO PAY MORE TAX IN THE YEARS AHEAD
Global taxpayers can expect to pay more tax in the years ahead. Many governments worldwide continue to update their tax legislation and expand their tax systems to repay debt and pay for increased social welfare, even as the memory of the last global financial crisis lingers. These are the conclusions… – Continue reading
Bulgaria parliament to hold regular sitting
Sofia. Bulgarian parliament will hold a regular sitting on Friday. The Bulgarian lawmakers will continue the debates on the amendments to the Tax and Social Insurance Procedure Code. The amendments filed by the Council of Ministers introduce the regulations of the European directive concerning the realisation of automatic exchange of… – Continue reading
Blacklisted HK: The Latvian Case
The blacklisting of Hong Kong by the European Union is over for the moment with Spain explaining to the EU it didn’t have HK on its list. In the course of investigation, Harbour Times receives a quick response from the Latvian embassy in Beijing to clarify their stance on Hong… – Continue reading
Global Forum makes strides toward tax transparency
The timely and effective implementation of the automatic exchange of tax information was a key theme during the Oct. 29-30 meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes held in Bridgetown, Barbados. The meeting, which brought together delegates from the Global Forum’s 128 member… – Continue reading
OECD: Global Forum on tax transparency pushes forward international co-operation against tax evasion
Major implementation milestones are being met by members of the world’s leading forum on tax transparency as the international community continues to move ahead towards greater tax transparency. The imminent shift to the automatic exchange of information will send a strong warning to tax evaders. Significant strides towards a major… – Continue reading
Critical Guidelines for Taxpayers with Foreign Bank Accounts & Amnesty Program Information
Further strides towards greater tax transparency around the world have been made with 13 countries signing up to the international framework enabling the automatic exchange of information. The OECD’s 8th Global Forum on Transparency and Exchange of Information for Tax Purposes was held in Barbados on 29-30 October and brought… – Continue reading
Inniss: FATCA good for Barbados
Barbados’ reputation as a home of “serious” business and a “significant” player in international business is being enhanced with the adoption of a United States law which targets non-complaint US taxpayers with foreign accounts, Minister of International Business Donville Inniss has contended. In fact, Inniss suggested that the Foreign Accounts… – Continue reading
Transfer pricing makes big splash on global taxes
Multinationals have generated big-time revenues with its subsidiaries spread all over the world, which means huge profits and that’s taxable income. In recent years, a number of conglomerates – Amazon, Apple, Google and Starbucks – have engaged in so-called profit-shifting (profit allocation) via transfer pricing methods to pay minuscule taxes…. – Continue reading
Bulgaria joins automatic exchange of financial account information agreement
Sofia. Bulgaria joins the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information, the press office of the Bulgarian cabinet announced. The agreement was signed by 51 jurisdictions on October 29, 2014 in the frames of the Global Forum on Transparency and Exchange of Information for Tax Purposes… – Continue reading
Belgrade Mayor Denies Owning Homes in Bulgaria
Sinisa Mali, the Mayor of Belgrade, has dismissed claims that he owns 24 apartments on the Bulgarian coast. Belgrade Mayor Sinisa Mali has denied a media report that he owns a string of properties in Bulgaria. In a statement, he said he owns only one apartment in Bulgaria, which he… – Continue reading
Bulgaria takes steps to implement the FATCA
On 15 September 2015, the Bulgarian Council of Ministers submitted to the Bulgarian Parliament a proposal to implement the US Fair and Accurate Credit Transactions Act (FATCA) through changes in the Bulgarian Social Security Code. The proposed changes will effectively lead to the creation of an automated system for transfer… – Continue reading
Parliament ratifies Bulgaria-Romania agreement on double taxation avoidance
Sofia. Bulgarian parliament ratified an agreement between Bulgaria and Romania on the double taxation avoidance and prevention of tax concealing, inked in April 2015. The current agreement between the countries was signed in 1994 and does not meet the economic relations between the countries. The new one offers a system… – Continue reading
EU blacklists Hong Kong as ‘non-cooperative tax jurisdiction’
Kenneth Leung (PC,F-Accountancy) explains what he – and the government – are doing to get Hong Kong off the EU’s undeserved blacklisting as a “non-cooperative tax jurisdiction”. Why has Hong Kong been placed on this list? There are ten European countries that have named Hong Kong as a tax haven…. – Continue reading
Bulgaria to exchange information with Guernsey on tax matters
Sofia. Bulgarian Council of Ministers approved at its regular Wednesday sitting an agreement on exchange of information on tax matters signed between the governments of Bulgaria and Guernsey. The cabinet proposes the National Assembly ratifies the document, the press service of the Government announced. The agreement sets conditions for the… – Continue reading
Cypriot Transactions No Longer Face WHT In Greece
Greece has repealed a 26 percent withholding tax on business transactions with Cyprus following pressure from the European Commission. The tax, which was introduced by Greece in March, applied to transactions with Bulgaria, Cyprus, and Ireland – territories that were targeted due to their low corporate tax rates. The European… – Continue reading
BULGARIA: INCOME TAX TREATY WITH UK
A new income tax treaty between the Bulgaria and the United Kingdom was signed in March 2015. The treaty, once it is ratified and enters into force, will replace the existing income tax treaty (1987). The new income tax treaty includes measures that differ from the provisions under the current… – Continue reading
Worldwide: Governments Continue To Welcome Wealthy Foreigners
With the UK announcing new tax rules for foreigners living in the country, the government has been careful not to damage the country’s appeal to wealthy foreigners. The “non-dom” tax status “plays an important role in allowing those from abroad to contribute to our economy”, says George Osborne, the UK’s… – Continue reading
BULGARIA: INCOME TAX TREATY WITH UK
A new income tax treaty between the Bulgaria and the United Kingdom was signed in March 2015. The treaty, once it is ratified and enters into force, will replace the existing income tax treaty (1987). The new income tax treaty includes measures that differ from the provisions under the current… – Continue reading
