English
Bulletin, December 2017
Substantial statute amendments regarding enhanced pecuniary liability of the managing directors, stake owners and shareholders for public debts of the companies
The amendments to the Tax and Social Insurance Procedure Code which have entered into force have added to the existing regulation on the liability of third parties for outstanding tax and social security contributions of liable legal entities who are liable to tax or compulsory social security contributions or who are required to withhold and pay in taxes or compulsory social security contributions. The introduction of the amendments was necessary in order to clearly define the objective and subjective preconditions that need to be proved in order to engage subsidiary liability of third parties under the procedure of Art. 19 of the TSPC. The adopted amendments extended the circle of persons responsible for the existence of public debts, and in this circle, together with the so far liable legal or authorized representatives of the indebted legal person, are also included those who, by virtue of a power of attorney certified by a notary manage the company’s entire business, as well as the owners of the capital. Majority shareholders are also responsible when actions are taken by their decision, except for those who have not voted and voted against.
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New obligations for performance of cross-border activity in EU countries
In 2017 some EU countries introduced new obligations with regard to nationals of other countries, including Member States, to freely exercise activities within their territory. For example, in Austria, a special new Law regarding wage and social dumping (Lohn- und Sozialdumping-Bekämpfungsgesetz) entered into force. The provisions introduced by this law are of particular importance for employers based in Bulgaria who post their employees to perform certain activities in Austria, for example to provide certain services under a contract for the performance of certain works or in any way to provide a workforce on the territory of Austria. This amendment facilitates wage and social dumping duties to a certain extent, however, there is both increase of administrative fines and of liabilities. Furthermore, breaches of wage and social dumping duties can lead to negative consequences in public procurement procedures.
At the end of October 2017 in No. 86 of the State Gazette a considerable number of amendments were adopted in the Civil Procedure Code. Amendments can be grouped as follows:
Changes in the procedure for service of subpoenas and court documents. The most changes impact the cases when the addressee is not found at the address. It is foreseen that the servicing officers shall have to visit the address at least three times within one month, on a non-working day and require information about the persons from the residential manager and the mayor of the relative district. Only then they are entitled to serve the documents by sticking a message on the door or mailbox of the addressee. New changes provide for a duty of the court to verify the address of the addressee ex officio and, after establishing the regularity of the service, to appoint a special representative (attorney) of the addressee summoned as described above, at the expense of the plaintiff.
The already effective amendments to Social Insurance Code and the Ordinance on Cash Benefits and Allowances from State Social Security Fund provide the right of the mother or the adoptive mother to receive 50% of the pregnancy and childbirth compensation if they decide to return to work prematurely – and now this option could be exercised even after the 135th calendar day from the first day of their maternity. As well as up to now, in order to do this, the child should not be placed in a childcare facility on full state support.
Bulletin, November 2017
Tax advice in the field of national and international tax law
KWR Belokonski Gospodinov and Partners is an internationally operating lawfirm, located in Sofia, Bulgaria, which offers in close cooperation with the leading Austrian law firm KWR Karasek Wietrzyk Rechtsanwälte and international networks of law offices worldwide professional legal support in all areas of business law.
We offer comprehensive legal services, with particular emphasis on national and international tax law. Some of our lawyers have extensive experience in the tax and financial public administration. Our profound experience and knowledge in the field of tax law and the tax litigation allows us to:
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RENDER ADVICE ON REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE MEMBER STATE OF REFUND BUT ESTABLISHED IN ANOTHER MEMBER STATE (COUNCIL DIRECTIVE 2008/9/EC OF 12 FEBRUARY 2008)
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RENDER ADVICE ON AVOIDING DOUBLE TAXATION
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SUCCESSFULLY REPRESENT OUR CLIENTS BEFORE THE TAX AUTHORITIES AND IN ADMINISTRATIVE AND TAX LITIGATION BEFORE ALL ADMINISTRATIVE COURTS
It is essential for the companies, operating on the Community’s international market, the opportunity to refund the VAT on purchased goods, received services or importation in Member State where they are not established. Council Directive 2008/9/EC of February 12 2008 laying down detailed rules for the refund of value added tax, provided in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State allows the exercise of this right.
Despite of the extensive practice in this area, however, there are still a number of problems that impair companies to exercise their rights, conferred on them by the Directive.
Bulletin, October 2017
Amendments regarding to the protection of personal data
A new Regulation on data protection is in force since May 24, 2016 – Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (shortly “Regulation”). Important point in the new legal regulation is:
- that the Regulation is directly applicable in all Member States of the EU, whereby a specific implementation in the local legislation of the Member States is not necessary (as opposed to the directives that regulate the legal relations on the protection of personal data at the level of EU law up to now) and...
New amendments to the VAT Act allow VAT registration simultaneously with the initial entry in the Registry Agency/Commercial Register
With a proposed draft Law on amendment and supplement to the Tax and Social Insurance Procedure Code, which was developed in implementation of a Decision of Council of Ministers № 338 of 2017 on the adoption of measures for reducing the administrative burden on citizens and business by removing the requirement to submit certain relevant official supporting documents on paper, proposals for changes were made for the Excises and Tax Warehouses Act, The Corporate Income Tax Act, Law on Local Taxes and Fees, Value Added Tax Act and on other legal acts.
Another amendment to the Labor Code and other legal acts that are directed against non-payment of wages to employees are on way. Among the measures envisaged is that the employers who owe wages and compensations of employees would not be able to participate in public procurement procedures as contractors and subcontractors. Additional opportunities for the employees to receive their wages and compensations from the Guaranteed Receivables of Workers and Employees Fund are to be introduced.
The already effective amendments to Social Insurance Code and the Ordinance on Cash Benefits and Allowances from State Social Security Fund provide the right of the mother or the adoptive mother to receive 50% of the pregnancy and childbirth compensation if they decide to return to work prematurely – and now this option could be exercised even after the 135th calendar day from the first day of their maternity. As well as up to now, in order to do this, the child should not be placed in a childcare facility on full state support.
Debt collection continues to expand its range as bailiffs extend the scope of enforcement actions. Very often the object of enforcement is the commercial undertaking or, respectively, the personal property of the Sole Trader - one of the most widespread forms of traders since the entry into force of the Commerce Act in 1991.