(continuing from Nature and Types of Transfer Pricing – Part I)
When making inter-company deliveries at market prices, all of the divisions can realize profit. The amount of the profit is a true indicator for the effectiveness of their activity. The market price is a criterion for the profitability of the whole chain of inter-company deliveries. The buyer buys from the seller as long as his production responds fully… Continue reading »
Transfer pricing is a practice which is usually connected to international operations. It’s related to non-market approach in defining prices of products and services, which are being delivered from one division of the organisation to another. Despite of the administrative pricing, the operations can be conducted on the basis of market principles whereas through the price base there are implemented typical features of the competition pricing.
The definition of the… Continue reading »
Obligations of an Employer According to the Bulgarian Insurance and Tax Legislation When Sending a Hired Person On a Business Trip From a EU Member State to Bulgaria
The questions cаme from an organization, which is a part of an international concern, established from companies which are separate legal entities. For the purpose of exporting the German production in Bulgaria, an Italian citizen with a form A1 has been sent to the Bulgarian company, who has an active labor contract with one of the concern companies in Germany. Your company signed a tripartite contract with the
The European Bank for Recovery and Development Increased Its Positive Expectations For Economic Growth in Bulgaria to 1.9%
The European Bank for Recovery and Development (EBRD) expects an increase of the GDP rate with 1.9%. During the previous year the institution was expecting the growth to reach 1.7%.
The financial institution emphasizes that the fiscal position of the country remains stable with low deficit. It is also pointed that because of the successful emission of Eurobonds, which were issued last year, Bulgaria has significant fiscal and monetary buffers… Continue reading »
With the changes in legislation a lot of favourable conditions are back for getting a VAT refund when acquiring or renting company’s cars.
Some changes in the legislation provide greater opportunities for companies to deduct VAT. Companies could use tax credit in the following cases: when they use an operating leasing, when they buy cars for their main business with 6+1 seats and when transport and other specialized companies buy… Continue reading »