Bulgaria: Changes to preferential tax regime rules | KPMG | GLOBAL

Bulgaria: Changes to “preferential tax regime” registration rules

Bulgaria: Changes to preferential tax regime rules

Changes to the rules for registering companies located in “preferential tax regime” jurisdictions were published in the state gazette (no. 48) on 24 June 2016, and are effective 1 July 2016.


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Among the amendments are:

  • Changes to the circumstances for when companies must be registered in the Commercial Register because they are controlled by a company registered in a preferential tax regime jurisdiction and including new rules for the registration of companies located in preferential tax regimes
  • Revisions replacing the term “related persons” with the term “persons controlled by them” and measures defining “control” 
  • Allowing certain types of companies in Bulgaria (credit institutions, insurers and reinsurers, pension insurance companies) to be allowed under certain circumstances
  • Introducing a threshold of 10% (that is, the prohibition will only apply when the shareholding percentage is 10% or more than 10% from the capital of the company)


Read a June 2016 report [PDF 146 KB] prepared by the KPMG member firm in Bulgaria

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