Bulgaria’s Council of Ministers has submitted a proposal to parliament for amendments to the Corporate Income Tax Act, focusing on refining Global Anti-Base Erosion (GloBE) rules and extending regional tax relief measures on 2 December 2024.
Key changes aim to simplify and clarify the implementation of GloBE rules introduced on 1 January 2024. It excludes sovereign funds from the definition of the ultimate parent entity and clarifies reporting requirements for the national top-up tax, particularly for the final tax period in cases of taxpayer termination.
The proposal also extends corporate tax exemptions for production activities in municipalities with unemployment rates above the national average. This de minimis aid will be available from 1 January 2024 to 31 December 2030, targeting economic growth in underserved regions.
