site.btaBulgaria, US Agree on Automatic Exchange of CbC Reports

An arrangement between the competent authorities of Bulgaria and the US on the automatic exchange of country-by-country (CbC) reports was signed here on Thursday by Bulgarian caretaker Deputy Prime Minister and Finance Minister Lyudmila Petkova and the US Ambassador in Sofia Kenneth H. Merten, Petkova's Ministry said in a press release.

Under the arrangement, Bulgaria will receive information on the income, operations, assets and taxes of the large American multinational enterprise groups operating in Bulgaria. The local subsidiaries of such groups will no longer be obliged to file CbC reports according to the Tax- and Social-Insurance Procedure Code because this information will be exchanged on a reciprocal basis between the two countries. 

"Administrative cooperation is an effective tool for countering tax evasion, and this objective can be achieved only with the coordinated efforts of the countries worldwide. The conclusion of the arrangement on the exchange of CbC reports between Bulgaria and the US is an important step in this direction. Business executives have long been waiting for this arrangement because it will ease the administrative burden and will create a stable and predictable business environment," said Petkova, quoted by her Ministry.

"The automatic exchange of CbC reports will lead to an enhancement of international tax transparency and will help the tax authorities in decision-making on the effective channelling of resources into the identification, control and tackling the riskiest cases of tax evasion by large multinational companies," the press release noted further.

It said that by signing the arrangement, Bulgaria and the US honour commitments assumed within the OECD/G20 Base Erosion and Profit Shifting Project.