BULGARIA Law and Practice Contributed by: Todor Banchev Todorov and Victoriya Grishina, Banchev and Grishina Law Firm
courts, alongside parallel administrative tax enforce - ment where applicable. 6.3 Interaction Between Tax and Criminal Procedures Coordination between the National Revenue Agency and the prosecution authorities is ensured through for - mal notification procedures, information sharing and, in complex cases, joint or parallel investigative actions. While administrative and criminal tax proceedings are legally distinct, they may run in parallel, subject to procedural safeguards and judicial oversight. Bulgarian law provides for suspending the tax pro - ceedings and referring the materials to the relevant prosecutor when, during the proceedings, information on a crime of significance to the outcome is estab - lished. Disclosure of tax and social security informa - tion can be granted by the courts upon a request of the prosecutor, the investigating police officer or the investigator in connection with criminal proceedings. On the other hand, if in the course of criminal pro - ceedings evidence is collected that is relevant for establishing tax obligations, the police authorities, the prosecutor or the investigators are obliged to provide the revenue authorities with access to this evidence and certified copies thereof. In the litigation process of appealing tax audit acts, although not criminal proceedings, the prosecutor is entitled to participate. 7. Administrative Co-Operation 7.1 Legal Framework for Administrative Co- Operation Administrative co-operation in tax matters in Bulgaria is primarily based on EU law, multilateral conven - tions and bilateral treaties. At the EU level, Bulgaria applies the Directive on Administrative Cooperation (DAC) framework, which provides for automatic, spon - taneous and on-request exchange of information, joint audits and other forms of cooperation between Member States. At the international level, Bulgaria is a party to the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters, enabling
broad information exchange and assistance in tax col - lection with both EU and non-EU jurisdictions. These instruments are complemented by bilateral tax trea - ties, which typically include exchange of information provisions aligned with OECD standards. 7.2 Exchange of Information Clauses in Tax Agreements Bulgaria participates in automatic, spontaneous and on-request exchange of information for tax purposes. Automatic exchange is carried out primarily under the EU DAC framework and the OECD Common Report - ing Standard, covering financial account information, tax rulings and other prescribed categories. Spon - taneous and on-request exchanges are conducted under EU law, the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters and bilateral tax treaties, enabling the Bulgarian tax authorities to obtain and provide information relevant to cross-border tax enforcement and compliance. 7.3 Other Forms of International Tax Collaboration Bulgaria participates in multilateral administrative co-operation mechanisms beyond traditional mutual agreement procedures. In particular, the Bulgarian tax authorities may engage in joint and simultaneous tax audits with other EU Member States under the Directive on Administrative Cooperation (DAC) frame - work. While Bulgaria has not formally announced participation as a lead authority in the OECD Interna - tional Compliance Assurance Programme, it may be involved indirectly or on a case-by-case basis through information exchange and coordinated audit actions with other participating jurisdictions. 8. Mutual Agreement Procedures and Arbitration 8.1 Availability and Legal Basis Bulgaria has an established mutual agreement pro - cedure (MAP) framework available to taxpayers. The legal bases for MAP include bilateral tax treaties, the EU Arbitration Convention (for transfer pricing and permanent establishment disputes within the EU) and the EU Tax Dispute Resolution Directive, which pro - vides binding dispute resolution mechanisms.
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