On 3 July 2020, the European Commission closed the infringement procedure against Bulgaria regarding the incorrect implementation of Council Directive 2014/107/EU amending Directive 2011/16/EU as regards the mandatory automatic exchange of information in the field of taxation (DAC2).
The issue was that Bulgarian domestic rules provided for a broader exception for certain reportable persons than the one allowed under EU legislation, allowing certain types of entities, such as partnerships, to escape due diligence procedures, and excluding certain annuity contracts from their scope.
In the meantime, Bulgaria amended its legislation accordingly and, as a result, the Commission decided to close the infringement procedure.