As published on: seenews.com, Thursday 29 June, 2023.
Bulgaria's government is proposing, in line with EU regulations, to increase to 15% from 10% from next year the profit tax levied on the earnings of large multinational companies operating on the country's territory, which are mainly big retailers and banks, finance minister Assen Vassilev said.
The companies to which the proposed new profit tax will will apply are determined according to a specified set of criteria and the tax increase is expected to provide some 250 million levs ($139.8 million/127.8 million euro) in additional revenue to the state budget, Vassilev told public television BNT on Wednesday.
The new corporate tax rate would apply from January 1, 2024 and is in line with the EU-wide decision to adopt a minimum 15% tax on multinational groups' combined profits that exceed 750 million euro ($820.2 million) per year.
Vassilev on Wednesday unveiled the draft budget for 2023 along with an updated medium-term budget forecast for 2023-2025, which puts stress on improved revenue collection and projects 4.7 billion levs more in tax revenues compared to 2022.
In December last year, the EU Council approved the Commission's proposal for a directive on a global minimum level of taxation for multinational groups in the EU, with member states now obliged to transpose the new rules into national law by December 31. The 27 member states of the EU are among some 140 countries worldwide that have agreed the measure in accordance with the Pillar 2 of the international taxation reform introduced by the OECD.