BULGARIA’S PARLIAMENTARY BUDGET COMMITTEE HOLDS HEARING OF THREE MINISTERS OVER THE NEW TAX ADOPTED BY GREECE

The withholding tax of 26%, which Greece introduced to levy Greek business transactions originating in Bulgaria, will be the topic of discussion at the sitting of the Budget and Finance Committee of Bulgaria’s Parliament on 7th of April.

Bulgaria’s Minister of Finance, Minister of Foreign Affairs and the Minister of the Economy will report to MP’s on the measures Bulgaria will undertake in response to the provisions adopted in Greece’s Income Tax Code.

The new 26% withholding tax covers all Greek deals and transactions originating from sources in Bulgaria, Ireland and Cyprus and was introduced because of the lower corporate tax rates in the three countries.

Bulgaria’s Finance Minister, Vladislav Goranov, has already referred to the European Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici, in regard to the 26% tax. The minister has sent a letter expressing his concern that the provisions adopted by Greece are incompatible with the law of the European Union and are discriminatory.