In Focus

Latest News Concerning the Personal Use of Business Assets

February 12, 2016

According to the latest data published on the website of the Ministry of Finance, there has been a meeting on 11 February 2016 between representatives of the Ministry of Finance and representatives of the CEIB (Confederation of the Employers and Industrialists of Bulgaria). The following opportunities for future actions concerning the taxation of the personal use of business assets have been agreed:

• A derogation should be requested from the European Commission aiming to limit the right for input VAT deduction for vehicles  to 50%(similarly to existing regulations in other member-states), which is expected to relieve the accounting and tax planning during their personal use.

In our opinion, the potential new rule shall be an alternative to the current ones (i.e. the opportunity for larger portion of input VAT deduction shall remain, but subject to documental evidence);

• One – off tax on the costs for personal use of business assets to be introduced (instead of their taxation as personal income under the general rules);

This approach will would relieve the process of determining of the tax liabilities for direct taxes.

• NRA shall introduce internal rules which shall guarantee objectivity during carrying out of tax checks and audits.

Further developments are expected.

Should any questions regarding the information in the present newsletter arise, please do not hesitate to contact us at tel +359 2 9433700, fax +359 2 9433707, e-mail: office@afa.bg or at the postal address: 38, Oborishte Str., 1504 Sofia.

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