In Focus

  • Share:
See further details on...

June 23, 2020

Changes in the Tax and Social Security Proceedings Code regarding Automatic Exchange of Information in Field of Direct Taxation

As from 1 July 2020, alike in other EU member states, legislative changes will come into force in Bulgaria implementing Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements. The provisions implementing the new rules have been introduced into the Bulgarian Tax and Social Security Proceedings Code.

The new rules require consultants or taxpayers (in case there is no EU-based consultant) to provide information to the revenue authorities on ‘reportable cross-border arrangements’ identifiable by means of defined hallmarks and involving taxpayers from different EU member states or from an EU member state and a third country.

The rules shall be applied retroactively with respect to reportable cross-border arrangements that have been implemented during the period from 25 June 2018 to 30 June 2020. Information regarding such arrangements shall be reported to the Bulgarian revenue authorities by 31 August 2020 (because of Covid-19, the European Commission has proposed deferring reporting deadlines, which is being discussed as an option for member states; currently, it is unclear whether Bulgaria would undertake legislative changes to such effect).

Otherwise, information on reportable cross-border arrangements shall be reported to the Bulgarian revenue authorities within 30 calendar days beginning: (a) on the day after the reportable cross-border arrangement is made available for implementation; or (b) on the day after the reportable cross-border arrangement is ready for implementation; or (c) when the first step in the implementation of the reportable cross-border arrangement has been made, whichever occurs first; or within 30 calendar days beginning on the day after assistance or advice has been provided regarding a reportable cross-border arrangement.

In case an obligation for reporting arises, the information that shall be filed with the Bulgarian revenue authorities includes, among others: name, residence for tax purposes, tax identification number of the taxpayer and its associated enterprises involved; a summary of the content of the reportable cross-border arrangement, and a description of the relevant business activities or arrangements (without leading to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information the disclosure of which would be contrary to public policy); the value of the reportable cross-border arrangement; etc.

The penalties for failure to fulfil an obligation for filing information on a reportable cross-border arrangement shall be between BGN 5 thousand and BGN 10 thousand for legal entities and sole traders, and between BGN 2 thousand and BGN 5 thousand for individuals. In case of submission of incomplete or untrue information, the penalties shall be respectively between BGN 2 thousand and BGN 8 thousand, and BGN 1 thousand and BGN 3 thousand.


This material is not exhaustive, is only of general nature and does not represent a specific advice or consultation. Should any additional questions arise, please do not hesitate to contact us at tel.: 02/943 37 00, е-mail: or at: 38, Oborishte Str., Sofia 1504.

Download this news
(0.57 MB)

Go to In Brief: All