New rules in Bulgaria regarding country-by-country (CbC) reporting were published in the official gazette on 4 August 2017.
The new rules will apply with respect to multinational enterprise (MNE) groups that operate in different EU Member States or other jurisdictions through subsidiaries or permanent establishments (PEs) and that have a consolidated revenue of over €750 million.The CbC report must contain data on all entities and PEs of the multinational enterprise group, including information for the country or jurisdiction where the respective entity is a tax resident, a description of its activities, and aggregated financial data.
The CbC report must be submitted to the Bulgarian tax authorities electronically within 12 months of the last day of the reporting fiscal year for the multinational enterprise group. An entity or a PE that is part of a MNE group and that is a tax resident in Bulgaria must notify the tax authorities: (1) whether it is an ultimate/surrogate parent company or constituent entity that will file the CbC report in Bulgaria on behalf of the MNE group; or (2) which entity is the reporting entity that will submit the CbC report for the group and the jurisdiction in which it is tax resident. The notification for the first reporting period (reporting fiscal year commencing in 2016) must be provided to the tax authorities no later than 31 December 2017.
Read an August 2017 report [PDF 150 KB] prepared by the KPMG member firm in Bulgaria
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.