Global Consult Europe

Acquisition of shares by employees of a joint-stock company for achieved results through a donation agreement with the majority shareholder One of the possible ways for employees of a joint-stock company to acquire shares is through a donation contract concluded between the relevant employees and the majority shareholder - a commercial company. Under the donation contract, the majority shareholder transfers, free of charge, from the blo...

Restriction on cash payment upon dividend distribution How should the concepts of “distributed dividend” and “paid dividend” be distinguished, and more specifically, does a decision of the General Meeting to pay a dividend in the amount of over 1000 BGN /or its equivalent in euros/ and a paid dividend in the amount of less than 1000 BGN /or its ...

Right to deduct a tax credit for supplies with a place of performance outside the territory of the country The conditions and procedure for exercising the right to deduct a tax credit are regulated in the Value Added Tax Act (VAT Act). A registered person is entitled to a tax credit for the tax due from him for: goods or services received by him under a taxable supply; a payment made by him before...

Place of business activity of a Bulgarian company in another country In view of the territorial scope of Bulgarian legislation, when examining the presence of a place of business activity outside the territory of Bulgaria, it is necessary to be taken into account the definition of this concept, which is contained in the agreements for the avoidance of double taxation...

Tax treatment in Bulgaria of a Bulgarian company operating in another EU member state It often happens that a Bulgarian company with a VAT registration in Bulgaria also operates in another EU member state and has a VAT number from that country. If the company pays a value added tax (VAT) and a corporate tax in this country, a number of questions arise related to its tax treatment in....

Tax treatment of supplies related to land and independent units in buildings under the Value Added Tax Act In the case of supplies related to land or independent objects in buildings, the question arises of their taxability under the Value Added Tax Act (VAT Act). Under the VAT Act, any supply of goods with a place of performance on the territory of the country is taxable when carried out by a person lia...

Tax treatment of shares transferred by donation in Ltd. A situation is possible where company shares of the capital of a limited liability company (LLC, Ltd.) have been transferred from one partner to another not with the usual purchase and sale contract, but with a donation contract. Accordingly, in this situation, the question arises whether the compan...

Receivables of a company from a sole trader (ST/ ET) who is the sole owner of the capital/partner or shareholder in the company When the sole owner of the capital/partner, shareholder is a natural person who also has the status of a sole trader (ET), the question may arise whether the company's receivables from the sole trader, which arise from commercial transactions (sale of goods and services, etc.) should be declared? In...

Health insurance for family members of a foreign citizen with an EU Blue Card residence and work permit In connection with the "EU Blue Card" type residence and work permit received by foreign citizens, the issue of health insurance for their family members who wish to reside in Bulgaria arises. It should be borne in mind that in order for a person to be liable for health insurance in Bulgaria, he sho...

Tax treatment of the funds received for the performance of a contract for management and maintenance of property When executing a contract for property management and maintenance in Bulgaria, a question arises for the tax treatment of the funds received by the company which manages and maintains the property in connection with the contract. Most often, such a situation arises when a contract is concluded betwe...

Contribution to a newly created commercial company of real estate, purchased with a tax credit, by a VAT registered person A situation is possible in which a person registered in Bulgaria under the Value Added Tax Act (VATA) owns real estate, purchased with a tax credit, with which the person wants to register a new company. Several important questions arise in this hypothesis. First of all, is it possible to contribute...

Invoicing period of company income and expenses A situation is possible in which company activities have been actually carried out in a previous month or accounting period, but due to the established reporting organization, invoicing has been carried out in the following month. In this case, the question arises to which period the invoiced compan...