Bulgaria/July 2013
New rules for administrative cooperation between EU member states have been required to respond to the challenges of the globalisation.
This type of assistance in the field of direct taxation has been established since 1977. At that time the cooperation was regulated by Council Directive 77/799/EC. That initial directive has been replaced with Council Directive 2011/16/EU.
On June 7 2012, based on the implementation of the above directive in Bulgarian legislation and due to the dynamic changes worldwide, the Ministry of Finance in Bulgaria published a draft for amending the Tax and Social Insurance Procedure Code by enacting the following main changes:
•Administrative cooperation between the EU Member States will be accomplished with an exchange of information in different ways including electronically, mainly in the field of direct and local taxes;
•Increase of the scope that will be covered, namely physical persons, legal entities, associations of persons, all types of legal associations such as foundations and trusts;
•Regulation of the terms, forms, liabilities and rules for exchange of information between EU member states; and
•Creation of a confidential regime for information exchange, creation of some limits and evaluation of the transferred data.
There is a department at the Bulgarian competent authority which is responsible for sending and receiving the required information between EU member states.
The changes clarify and increase effectiveness of the existing administrative mutual assistance between member states. However, due to the importance of the administration cooperation between the EU states, the implementation of the changes will ensure a more precise application of the local legislation together with a precise application of the EU Directives in general.
Eurofast Global, Sofia Office
sofia@eurofast.eu
Tel. +359 2 988 69 77
www.eurofast.eu