Law Amending And Supplementing The Law On Corporate Income Tax

Original Language Title: Закон за изменение и допълнение на Закона за корпоративното подоходно облагане

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Name of law Law amending and supplementing the law on corporate income tax bill name a bill amending and supplementing the law on corporate income tax date of acceptance 05/11/2013 number/year Official Gazette 100/2013 Decree No 221

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on corporate income tax, adopted by the National Assembly on HLIÌ 5 November 2013.

Issued in Sofia on 15 November 2013.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice: Zinaida Zlatanova

LAW

amending and supplementing the law on income tax (porativnoto Corr official SG. 105 of 2006; amend., SG. 52, 108 and 110 since 2007, no. 69 and 106 since 2008, 32/35 and 95 of 2009, issue 94 from 2010, issue 19, 31, 35, 51, 77 and 99 from 2011, and 40/94 by 2012 and 15 PCs. , 16, 23, 68 and 91 by 2013)

§ 1. In art. 37 following amendments and supplements shall be made:

1. The current text becomes paragraph 1 and in it:

and before that) the text shall be amended as follows: 1 "Unrecognised for tax purposes, income and expenses from ex post evaluations and the write-off of receivables by the procedure of art. 34 are recognised for tax purposes at the earliest in the year in which one of the following circumstances occur: ";

b) point 1 shall be amended as follows:

"1. the expiry of a period of three years for claims with a three-year limitation period or 5 years for claims with a five-year limitation period from the time the claim has become due;"

c) in item 5, the words "limitation period" shall be replaced by ' the relevant period referred to in paragraph 1 ".

2. a para. 2:

"(2) where, prior to the occurrence of the circumstances under para. 1 the claim, including, but not limited to, through payment, collection or interception, unrecognised for tax purposes, income and expenses from ex post evaluations in accordance with art. 34 are recognised for tax purposes in the year of implementation. "

§ 2. In art. 42, para. 2 make the following amendments and additions:

1. point 1 shall be amended as follows:

"1. the basic remuneration;".

2. a new paragraph 2:

"2. further remuneration, determined as required by law;".

3. paragraph 3 shall be inserted:

"3. the benefits laid down as required by law;".

4. The current paragraph 2 becomes paragraph 4.

§ 3. In art. 46, para. 1 is hereby amended as follows:

1. point 1 shall be amended as follows:

"1. the expiry of a period of three years for the obligations with the three-year limitation period or 5 years for obligations with the five-year limitation period from the moment at which the obligation has become due;".

2. In paragraph 5, the words "limitation period" shall be replaced by ' the relevant period referred to in paragraph 1 ".

§ 4. In art. 184 following amendments and supplements shall be made:

1. In paragraph 1 the number "35" is replaced by "25".

2. a new paragraph 2:

"2. in the entire tax period the taxpayer maintains no fewer than 10 jobs, having at least 50 per cent of them are employed directly in the manufacturing activities;".

3. paragraph 3 shall be inserted:

"3. during the entire tax period not less than 30 per cent of staff are persons domiciled in municipalities under item 1;".

4. The current paragraph 2 becomes paragraph 4.

§ 5. In art. 189, para. 1, item 3 the number "35" is replaced by "25".

§ 6. In art. 195 Al is created. 6:

"(6) with the withholding tax is not levied on:

1. income from interest on bonds or other debt securities issued by resident legal person and admitted to trading on a regulated market in the country or in a Member State of the European Union or of another State party to the agreement on the European economic area;

2. income from interest on loans granted by a foreign person – the issuer of the bonds or other debt securities when both the following conditions are met:

a) issuer is resident for tax purposes in a Member State of the European Union or of another State party to the agreement on the European economic area;

(b)) the issuer has issued bonds or other debt securities in order to provide them the proceeds of the loan to the local entity;

in bonds or other) debt securities are admitted to trading on a regulated market in the country or in a Member State of the European Union or of another State party to the agreement on the European economic area. "

§ 7. In art. 200 and following amendments and supplements shall be made:

1. Create a new para. 2 and 3:

(2) income from interest, royalties may be taxed with a rate under para. 1 and before expiry of the period referred to in paragraph 1. 6, paragraph 2, provided that at the time of the charge of possession of a minimum required income from capital is not interrupted.

(3) in the cases referred to in para. 2, when possession of the required minimum capital is suspended, before the expiry of the minimum two-year period for the levied al. 2 income from interest, royalties tax rate is applied at a rate 10 percent. The withholding tax shall be adjusted as though the tax rate of tax on income from interest, royalties was 10 per cent. The difference between the imported and tax withholding due interest on arrears for the period from the date on which the tax should have been paid at source, up to the date of importation.

2. The current paragraph. 2 it al. 4.

3. The current paragraph. 3 it al. 5 and in the text before point 1, the words "paragraphs 1 and 2" shall be replaced by ' Paragraphs 1 to 4.

4. The current paragraph. 4 it al. 6 and in paragraph 2, the letters "a", "b" and "c", the words "owned" are replaced by "holds".

§ 8. In art. 267 following amendments and supplements shall be made:


1. The current text becomes paragraph 1 and in her words "charges cost representing the hidden profit distribution ' shall be replaced by ' the amount representing covert distribution of profits".

2. a para. 2:

"(2) in cases where the taxable person carried out the covert distribution of profits, pointing out that fact in your tax return, the penalty under paragraph 1. 1 you don't have to. "

§ 9. In § 1 of the additional provisions are made the following amendments and additions:

1. In paragraph 26, point (e) is repealed.

2. an item 70:

"70." regulated market "is this within the meaning of art. 73 of the law on markets in financial instruments. "

§ 10. In annex 5, the words "Al everywhere. 4 "shall be replaced by" para. 6. "

§ 11. In annex 6, the words "Al everywhere. 4 "shall be replaced by" para. 6. "

§ 12. Paragraph 43 of the transitional and concluding provisions of the law amending and supplementing the law on corporate income tax (SG. 95 of 2009) is amended as follows:

"§ 43. Tax relief by the procedure of art. 189 (b) can be used until 31 December 2013, including corporate tax for 2013. "

§ 13. Paragraph 4 of the concluding provisions of the law amending and supplementing the law on corporate income tax (SG. 68 by 2013) is repealed.

Transitional and final provisions

§ 14. After 31 December 2013 tax benefits under Chapter twenty two, section IV, with the exception of art. 189b, may be used until 31 December 2020 tax deduction under art. 184 constituting State aid for regional development, it can be used when the performance of the initial investment begun after 31 December 2013, but before January 1, 2020.

§ 15. Tax deduction under art. 184, for which the Minister of Finance has informed the European Commission by the procedure of art. 8 of the law on State aid, constituting State aid for regional development, shall enter into force after the positive decision of the European Commission concerning its compliance with the guidelines on national regional aid for 2014-2020, the European Commission. Provided that the European Commission provide a positive decision until 31 March 2015, tax relief can be applied for 2014. Divestment of advance payments for income tax not allowed until the date of the positive decision of the European Commission. After a positive decision from the European Commission, the Minister of finance should not draw individual notifications for taxable persons applying art. 184 with the exception of those carrying out major investment projects under art. 189.

§ 16. Retention of the right of disposal of the tax under art. 185, para. 1 and 2 for tax relief by the procedure of art. 184 constituting State aid for regional development in accordance with the guidelines on national regional aid for 2014-2020, the European Commission, shall apply until 31 December 2020.

§ 17. For the 2014 tax deduction under art. 189b shall apply after a positive decision from the European Commission to be compatible with the rules in the field of State aid. Provided that the European Commission provide a positive decision until 31 March 2015, tax relief may apply for 2014. Divestment of advance income tax payments for farmers is not permitted until the date of the positive decision of the European Commission.

§ 18. The law shall enter into force from 1 January 2014, with the exception of § 12, which shall enter into force on the day of the promulgation of the law in the Official Gazette.

The law was adopted by the 42nd National sat Rainier on 5 November 2013 and is stamped with the official seal of the National Assembly.

President of the National Assembly: Mihail Mikov

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