Tax Alert – Changes to Tax and Social Security Procedure Code (CbCR) (EN)



Notification deadlines  

Any constituent entity of a MNE Group, which is a Bulgarian tax resident, should notify the Executive Director of the NRA, in its capacity as a part of the MNE Group, whether it acts as an ultimate parent entity, a surrogate entity or a constituent entity appointed to submit the CbCR. The notification should be submitted to the NRA no later than the last day of the fiscal reporting year.

In cases where a MNE Group consist of several constituent entities tax resident in Bulgaria and/or other EU member states, the constituent entity appointed to file the CbCR should notify the NRA on its obligation.

Any Bulgarian tax resident constituent entity which is not obliged or appointed to submit the CbCR, should notify the Executive Director of the NRA about the entity liable to submit the CbCR and the jurisdiction of which it is a tax resident.  The notification should be submitted no later than the last day of the fiscal reporting year of the MNE Group.  The notification should be also submitted by all constituent entities of a MNE Group, which are tax resident in Bulgaria and are not appointed as an entity filing the CbCR.

Primary notifications for the fiscal reporting year starting on 1 January 2016 should be submitted no later than 31 December 2017.

Administrative sanctions (penalties)

An entity which fails to provide a CbCR within the statutory deadline could be subject to administrative penalty amounting from BGN 100 000 to BGN 200 000. In case of a second infringement the sanction is higher and amounts from BGN 200 000 to BGN 300 000.

An entity which fails to provide information or provides incorrect information in a CbCR could be penalized with administrative sanction amounting from BGN 50 000 to BGN 150 000. In case of a second violation the sanction amounts form BGN 100 000 to BGN 250 000. This sanction will be also applicable when the incorrect or incomplete information is due to a denial of the ultimate parent entity of a MNE Group to present information.

If a constituent entity fails to notify the NRA that the ultimate parent entity of the MNE Group has denied provision of the necessary information, will be subject to administrative sanction amounting to BGN 10 000.

If a constituent entity fails to notify the NRA it will be subject to administrative sanctions amounting from BGN 50 000 to BGN 150 000 (in case of a second violation the sanction could be up to BGN 200 000).

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Delchev & Partners

This Tax Alert has been prepared by DELCHEV & PARTNERS for information purposes only and does not constitute legal advice.  This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship.  Readers should not act upon this without seeking professional counsel.