20 December 2023
Obligation for disclosure of income tax information by country
On 19.12.2023 an amendment to the Bulgarian Accountancy Act was published, introducing an obligation for disclosure of information for paid income tax by country by certain multinational groups (MNG) of undertakings and standalone undertakings. The changes are made in accordance with Directive (EU) 2012/2101. The disclosure shall be made through a special declaration that shall be submitted to the Trade Register as well as shall be published on the Internet.
Obligation to submit such declaration shall have the ultimate parent undertakings of a MNG and standalone undertakings – Bulgarian residents, that perform economic activity in various jurisdictions and have consolidated revenue exceeding BGN 1,500 million (approximately EUR 750 million) for each of the last two consecutive financial years. If a MNG of undertakings with an ultimate parent established in a third country performs activity in Bulgaria only through a subsidiary or a branch, the latter shall submit the declaration for the ultimate parent undertaking or, if such has not been provided to them by the ultimate parent undertakings, shall prepare and submit a declaration containing the entire information available to them.
The declaration shall disclose information for the accrued and paid income tax by MNG of undertakings and standalone undertakings, as well as other circumstances related to that, separately by the jurisdiction where those undertakings have activity.
The declaration shall be submitted within 12 months after the end of the reporting period to which it relates. The year 2024 shall be the first period for which to submit such declaration.