AmCham Position on Amendments of the Emergency Law re Corporate Income Tax and Administrative Proceeding Continuation

On January 19th, 2020, AmCham Bulgaria submitted official statement on the proposed amendments of the Emergency Law which provision Corporate Income Tax Advance Payments for January – June to be done on the basis of of 2018, as well as the contunuation of the administrtive proceedings while the Emergency Law is in force (April 13th, 2020).

Advance Payments of the Corporate Income Tax

AmCham reminds that for many years now the historic approach to define the advance payment (on past profit) was abandoned and was replaced with defining the basis on official forecast. Considering the rapidly appeared crisis at the moment, the historical reference to 2018 which was a successful year in economy terms, it would add additional burden to many enterprises, which will not only gain profits in 2020, but they are worried for their own existence. Many sectors could be affected – for example: tourism, transport, distribution, as well as manufacturing related with vulnerable sectors, such as automotive one.

AmCham proposes to remain the current stipulation of the Corporate Income Law (Article 83)

Deadlines of Administrative Proceedings

In the initial draft of the law it is foreseen that during the emergency the deadlines to stop running all administrative proceedings to all court, administrative, arbitrage, and executive legal proceedings.

The proposed amendments made between first and second hearing at the Parliament do not foresee stopping of the deadlines of ongoing administrative proceedings. It is explicitly stated that the deadlines for appeal of administrative acts, the deadlines of the Administrative Violations and Penalties Act, as well as the deadlines of the so-called “Tax Laws” will not stop. This amendment will not cover the deadlines of the tax revisions and checks too.

The continuation of the terms for appeal of administrative acts questions the implementation of the basic human right of defense, guaranteed by Art. 122 of the Constitution of Bulgaria and Art. 6 of the European Convention of the Human Rights.

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