The Bulgarian Ministry of Finance announced, on 30 May 2024, the signing of an agreement with the United States for the automatic exchange of information (AEOI).
Lyudmila Petkova, Deputy Prime Minister and Minister of Finance, Bulgaria, alongside HE Kenneth Merten, US Ambassador to Bulgaria, formalised the pact.
This agreement represents a significant step in reducing administrative burdens for businesses while enhancing tax transparency internationally. Under the terms, Bulgaria will gain access to comprehensive information on the activities, revenues, assets, and taxes of major US multinational groups operating within its borders.
This reciprocal exchange will eliminate the need for local subsidiaries to file country-by-country reports, streamlining processes and fostering a more predictable business environment.
Moreover, the initiative aligns with commitments made by both nations under the OECD and G20 Plan to combat base erosion and profit shifting.
“Administrative cooperation is an effective tool to counter tax avoidance and only a coordinated effort of countries around the world can achieve this goal. The conclusion of the agreement for exchanging country-by-country reports between the Republic of Bulgaria and the United States of America is another important step in this direction,” said Petkova. “This agreement is long-awaited by business representatives as it will result in reducing the administrative burden and will create an anxiety-free and predictable business environment.”
