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Varadinov & Co.
Legal Bulletin

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State Gazette, issue 89 /November 12th, 2019
By a decree of the Council of Ministers, a number of amendments were made to the Rules for the Issuance of Bulgarian Personal Documents. The applications for issuance of a driving license (motor vehicle) to Bulgarian citizens will already be submitted to the District Police Directorate at the Ministry of Internal Affairs at a permanent address. In the case of the replacement of a driving license due to expiry, if the period of validity has expired, in the case of a change in the driver’s data concerning the change of surname and transliteration, as well as in the case of issue of a duplicate, the application may be submitted to the Regional Office of the Ministry of Internal Affairs at a permanent address, the Regional Office of the Ministry of Internal Affairs, appointed by the Chief Secretary of the Ministry of Interior or by officials authorized by him on the proposal of the Directors of the Ministry of Internal Affairs, or at the diplomatic or consular missions of the Republic of Bulgaria abroad. Upon receipt of a Bulgarian identity document or in case of refusal to issue such a document, the applicant or his authorized representative shall fill in, as heretofore, on his own, at the place indicated in the application, the names, date and place of receipt of the document or refusal and sign it before the official person, except when the Bulgarian identity document has been received through a licensed postal or courier service provider in accordance with Art. 17, para. 7, sentence one of the Bulgarian Personal Documents Act. The deadline for reviewing the applications submitted by Bulgarians abroad is shortened from 7 to 2 working days, and the Ministry of the Interior will send electronically to the Bulgarian diplomatic and consular missions instructions for eliminating the inconsistencies. From 30 to 7 working days the deadline for elimination of discrepancies is also shortened, after which the procedure for issuing an ID card is terminated, if they are not resolved. There are similar speeding-up provisions for the passport issuance procedure.
In cases where it is impossible to take biometric data from the person due to temporary physical impossibility, a temporary passport with a short validity period, corresponding to the necessary time for returning to the Republic of Bulgaria on the usual route, may be issued. When submitting an application for a driving license, the person may indicate that he or she wishes to obtain the finished driving license at the regional office or the District Police Directorate at the Ministry of Internal Affairs at his / her permanent address. Upon receipt of a personalized identity document personally by using a licensed postal or courier service provider or in the event of refusal to issue such a document, the applicant shall affix a signature certifying receipt of the shipment to a document of the postal or courier service provider’s representative. A signed delivery document is also considered a delivery document or snippet with a tracking number of the shipment, allowing to confirm the receipt of the Bulgarian identity document. The costs of sending the identity document from the respective diplomatic or consular mission of the Republic of Bulgaria abroad to the requested address, as well as the return to the diplomatic or consular mission of a signed document for its receipt shall be paid by the applicant to the respective licensed postal or courier service provider . When requesting the receipt of an identity document through a licensed postal or courier service provider, when submitting the application for the issuance of an identity document, the applicant shall: 1. submit an express application for the receipt of the identity document through a licensed postal or courier service provider; 2. return the previous identity document of the same type, if any, or complete a declaration under Art. 17, para. 2, or submit a request under Art. 32, para. 2 to hold a passport.

State Gazette, issue 96 /December 6th, 2019
Amendments to a number of tax laws have been made through amendments to the Corporate Income Tax Act, with many of the changes affecting tax breaks that constitute state aid for regional development. In the VAT Act, the transfer of shares or units equivalent to shares in companies which give their holder legal or actual ownership rights over a new real estate or part of it is defined as the supply of goods subject to VAT. The purpose is to stop the circumvention of the law whereby, by professing transactions for the transfer of shares or units, the ownership of real estate intended to be used for residential purposes by natural persons is effectively transferred, thus avoiding the occurrence of obligations for individuals. VAT. In order to overcome the practice, VAT registration should be avoided by transferring the commercial premises before reaching the required minimum threshold, in these cases it is envisaged to summarize the registration turnover - both in cases of transfers between related parties and when the persons act in concert. The general regime for recording and reporting of deliveries and sales of liquid fuels will already apply to large oil bases, which must, within six months, place the relevant measuring instruments, issue receipts for deliveries and provide remote communication with the NRA. The Organisation for Economic Co‑operation and Development ’s recommendations on tax avoidance and transfer of profits are being introduced and limiting the possibilities for aggressive tax planning and tax avoidance.
The amendments to the Personal Income Tax Act are aimed at reducing the administrative burden and facilitating the use of tax exemptions for persons with disabilities, children with disabilities and personal contributions for retirement and retirement benefits, as well as harmonizing the definitions of “Liquidation share” and “tax credit” with those in CITA. Diplomatic missions in Bulgaria will be able to withhold and pay tax on the income from employment of the local natural persons who work for them. In connection with the start of the functioning of the Uniform Tourist Information System, a change in the way of determining the tourist tax for the calendar month is envisaged, and it is proposed to do so on the basis of the number of nights provided during the calendar month. The exchange of data between the system maintained by the Ministry of Tourism and the municipalities will be carried out through the information exchange system maintained by the Ministry of Finance.
Individuals, including sole proprietors who are compulsorily registered with the service provider, and the tax required by the recipient of the VAT Act, will be subject to patent tax when performing patent activities under the Local Taxes and Fees Act. Municipal employees will be able to determine the real estate tax assessment of businesses in cases of deliberate lowering of their book values in order to reduce or avoid paying tax on them. Amendments to the Accounting Act and the Law on the Commercial Register and the Register for Non-Profit Legal Entities, sole proprietors who have not carried on business, are released from the obligation to declare this fact.