Insights

EU Member States Adopt Energy Windfall Tax

The Regulation establishes an emergency intervention to mitigate the effects of high energy prices through exceptional, targeted and time-limited measures.

Now in force: A detailed procedure for obtaining a start-up visa in Bulgaria

The Bulgarian government recently adopted legislation allowing entrepreneurs to receive the so-called “start-up visa”, which can serve as the legal grounds for obtaining a residence permit in Bulgaria.

Bulgaria ratifies the Multilateral Convention to Implement Tax Treaty Related Measures

The Convention is an international agreement prepared by the OECD, which aims to facilitate the renegotiation of already existing Tax Treaties for the avoidance of double taxation between the States that have acceded to the Convention.

VAT treatment of chain transactions and VAT deduction – new CJEU judgments

On 7 July 2022, the Court of Justice of the European Union ("CJEU") published two new judgments in cases brought on the basis of preliminary rulings on the interpretation of provisions of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax ("VAT Directive").

VAT changes: July 2022

The recently promulgated amendments to the Bulgarian Value Added Tax Act enter into force on 1 July 2022 (with the exception of a few separate provisions).

What’s new for payment institutions and investment intermediaries

The National Assembly and the Financial Supervision Commission (FSC) recently adopted amendments to the Bulgarian legislation regarding payment institutions and investment intermediaries, respectively. In this article, you will find a summary of the most significant changes.   

Variable capital company – the new proposal aimed at startups in Bulgaria

On June 15, a bill was introduced in the National Assembly to supplement and amend the Commerce Act. The bill aims to create a new type of company - a variable capital company ("VCC"), designated to better serve the Bulgarian business and the growing number of start-up companies that have chosen to develop in Bulgaria.

A specific difficulty in the establishment of a foundation via the provision of real estate

When a foundation is established through a transfer of real estate, there is one specific difficulty that should be taken into account.

EU Commission tax incentive proposal for the reduction of debt-equity bias

On 11 May 2022, the European Commission proposed a debt-equity bias reduction allowance (or “DEBRA”) to support companies in making financing decisions based on commercial rationales instead of tax driven considerations. In effect, the measure will grant to equity the same tax treatment as debt.

New ruling of the Supreme Administrative Court sheds light on third-person liability in VAТ fraud cases

On 10 May 2022 the Supreme Administrative Court ("SAC") ruled on Interpretative Case № 2/2020, initiated at the request of the President of the Supreme Administrative Court for an interpretative decision on the following matter:

“Does the scope of joint and several liability under Art. 177 of the VAT Act also include the obligations for default interest on the due and unpaid tax from another person?”

New amendments adopted in the VAT Directive

The new rules allow for an overhaul of VAT rates in all member states thus, permitting wider use of reduced rates, including the use of zero rates for essential products such as food, pharmaceuticals and medical products.

The transition from LIBOR: What is new in 2022

Following the end of 2021, the plans for the LIBOR transition have not changed - they have been put into motion. Most LIBOR tenors have ceased to be published since 31 December 2021.

Employment Relocation of Ukrainian citizens in Bulgaria

In the beginning of March 2022, for the first time ever, the EU decided to activate the Temporary Protection Directive (TPD). The Directive allows for Ukrainian refugees to be granted with a temporary protection status, which entitles them to various rights.

OECD detailed technical guidance on 15% global minimum tax as part of Pillar Two

On 14 March 2022, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) published a Commentary with detailed guidance on the Pillar Two model rules for a 15% global minimum tax.

Moratorium lifted: Acquisition of private State and municipal property by statute of limitations

A person can now freely acquire private state or municipal property by statute of limitations. This was not possible until recently, as a moratorium had been preventing such acquisitions since 2006. 

The revised EU list of non-cooperative jurisdictions for tax purposes

On 24 February 2022, the Council of the European Union European adopted Conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes. Established in December 2017, the list is part of the external tax strategy of the EU.

Marching to the Cyber Space of the Future: Digital Services Act Proposal and its Implications

The DSA draft contains a diverse set of rules concerning the online space, digital service providers and, above all, their obligations in relation to the content they provide access to.

Taxing the Metaverse (Personal Income Tax Perspective)

In October 2021, Facebook co-founder and CEO Mark Zuckerberg announced his vision about the metaverse. But what exactly does this concept entail?    

We explore whether the current state of the Bulgarian tax legal framework captures Metaverse economic activity.

The Future of Unmanned Flight (Part 4): Data Protection and Privacy – Open Issues and the Way Forward

If a journalist uses drone footage of the private home of a known politician to illustrate possible embezzlement or abuse of power used to purchase expensive items, is the capturing of personal data by the drone permissible?

Covered Bonds in Bulgaria: Low Risk with Huge Potential

Covered bonds are debt securities issued by a credit institution (bank) and secured by assets that meet certain requirements and serve to satisfy investors in their capacity as preferred creditors.

The Algorithm of the EU Draft AI Regulation

One of the aims of the EU Draft AI Regulation is to encourage businesses to invest in the development of AI by making sure that it is safe, ethical, and under human control. The Regulation is relevant for both start-up and established businesses, as well as for multiple governments and their respective bodies.

Insolvency proceedings: State of play of establishing receivables

With the opening of insolvency proceedings against a debtor, court and arbitration proceedings under civil and commercial cases against him are suspended.