What are the conditions for a company in Bulgaria to be obligated for a statutory audit?
In compliance with Art. 38., para 1 from the Bulgarian Law on Accounting :
Unless the law provides otherwise, subject to an independent financial audit by certified auditors shall be the annual financial statements of the following legal entities:
- Joint stock companies and limited partnerships with shares;
- Companies that are issuers under the meaning of the Public Offering of Securities Act;
- Credit institutions, insurance and investment
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Bulgaria Highlights
Currency: Bulgarian Lev (BGN)
Foreign exchange control: No, but some reporting requirements apply.
Accounting principles/financial statements: Bulgaria applies IFRS as a statutory accounting basis. Only certain entities are entitled to opt to apply the national financial reporting standards for small and medium-sized enterprises.
Principal business entities: These are the limited liability company, joint stock company, sole trader and branch of a nonresident company.
Corporate taxation:
Residence
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Exchange control and Personal tax
EXCHANGE CONTROL
Transactions and payments between local and foreign persons can be made freely according to Bulgarian legislation.
Direct investments made by Bulgarian residents in foreign countries, as well as given credits between local and foreign persons, need to be declared to the Bulgarian National Bank (BNB). Residents are required to give the BNB information about their receipts from and liabilities to foreign persons every quarter.
Transfers and payments… Continue reading »
Posted in Bulgarian Tax Guide, Taxation Tagged Law, Legislation, Tax Services
Withholding Tax
A 5% withholding tax is levied on dividends and distributions arising on the liquidation of resident companies to foreign legal entities, except where the dividends are realised by a permanent establishment in Bulgaria.
Dividends and similar distributions are exempt from withholding tax where paid to companies and other legal entities resident in an EEA member state.
A 10% withholding tax is levied on the following to non-residents (except where paid… Continue reading »
Posted in Bulgarian Tax Guide, Taxation Tagged Law, Legislation, Tax Services
Foreign Tax Relief
FOREIGN TAX RELIEF
Tax credits are available with respect to foreign tax paid on overseas income by resident individuals. The credit is limited to the amount of the Bulgarian corporation tax and income tax payable on that income. If Bulgaria has signed a double taxation treaty with the country where the income is sourced, the rules of the treaty apply.
CORPORATE GROUPS
There are no special rules relating to… Continue reading »
Posted in Bulgarian Tax Guide, Taxation Tagged foreign tax, Law, Legislation, Tax Services
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