On 30 September 2026, the Bulgarian National Revenue Agency (NRA) issued a warning about enhanced scrutiny of Turkish companies operating in Bulgaria due to identified corruption risks. The announcement signals a tightening of tax compliance enforcement targeting foreign-owned entities, particularly those from jurisdictions with elevated corruption perceptions. The NRA indicated that the checks will focus on transfer pricing, VAT compliance, and proper declaration of income, aiming to prevent tax base erosion and profit shifting. This move aligns with Bulgaria’s commitment to OECD BEPS standards and EU anti-tax avoidance directives.
Key Takeaways
- Increased Audit Risk for Turkish Firms: Companies with Turkish ownership should prepare for comprehensive tax audits covering transfer pricing documentation, VAT returns, and corporate income tax filings.
- Alignment with International Standards: The enhanced checks reflect Bulgaria’s implementation of OECD BEPS Action 13 (Country-by-Country Reporting) and EU DAC6 mandatory disclosure rules, requiring greater transparency.
- Practical Compliance Steps: Affected businesses should review their intercompany agreements, ensure arm’s length pricing, and maintain robust documentation to withstand scrutiny.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement