Bulgaria and United States Sign Agreement on Automatic Exchange of Country-By-Country (CbC) Reports
Deputy Prime Minister and Minister of Finance Lyudmila Petkova and H.E. Kenneth Merten, the Ambassador of the United States of America to Bulgaria, signed an agreement regulating the automatic exchange of country-by-country reports.
“Administrative cooperation is an effective tool to counter tax avoidance and only a coordinated effort of countries around the world can achieve this goal. The conclusion of the agreement for exchanging country-by-country reports between the Republic of Bulgaria and the United States of America is another important step in this direction. This agreement is long-awaited by business representatives as it will result in reducing the administrative burden and will create an anxiety-free and predictable business environment”, said Deputy Prime Minister and Minister of Finance Lyudmila Petkova.
Thanks to the agreement, our country will be receiving information about the revenues, activities, assets and taxes of the major US multinational groups operating in our country. The obligation for the local subsidiaries of these groups to file country-by-country reports under the Tax and Social Security Procedural Code will also be abolished, as this information will be exchanged on a reciprocal basis between the two countries. The automatic exchange of country-by-country reports will increase international tax transparency and will assist tax administrations in taking decisions on the effective targeting of resources to identify, control and counter the highest-risk cases of tax evasion by large multinationals.
By signing the agreement, Bulgaria and the USA are also fulfilling their commitments under the Organisation for Economic Co-operation and Development (OECD) and G20 Plan to implement measures against base erosion and profit shifting.