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Bulgarian Parliament Bans Offshore Firms From 28 Activities

Business | December 20, 2013, Friday // 12:58| Views: 2168 | Comments: 4
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Bulgaria: Bulgarian Parliament Bans Offshore Firms From 28 Activities Yordan Tsonev, DPS MP and Chair of the parliamentary budget and finance committee, photo by BGNES

Under a newly adopted law, companies registered in offshore zones will not be granted concessions or exploration permit for minerals in Bulgaria.

They are also excluded from participation in public procurement and privatization, including of municipal property, according to reports of dnevnik.bg.

The provisions are part of the Law on Economic and Financial Relations with Companies Registered in Jurisdictions with Preferential Tax Regimes and Their Real Owners which was conclusively adopted by Parliament on Friday.

The law, initiated by two MPs from liberal party Movement for Rights and Freedoms (DPS), Yordan Tsonev (Chair of the parliamentary budget committee) and Delyan Peevski, bans offshore companies from participating in a total 28 activities. It takes effect on January 1, 2014.

The law bans offshore ownership in professional sports clubs, mobile operators, energy and water companies, radio and TV operators, polling agencies, newspaper publishers and gaming operators.

Companies registered in offshore tax zones will not be allowed to own shares in banks and pension insurance companies in Bulgaria or to apply for insurance license.

Companies registered in offshore zones will not be able to apply for preferential treatment by the state in their capacity as investors, to participate in public-private partnership, or to acquire land and forests from the state. They will also be banned from waste collection and disposal activities, as well as trade in dual-use items.

The law allows exceptions to the ban in a number of cases, including when the shares of the offshore company are traded on a regulated market in an EU Member State, when the parent company of the offshore firm is treated as a resident company for tax purposes in a country with which Bulgaria has signed a double taxation convention, or is treated as a Bulgarian resident and its owners, natural persons, are known.

The companies affected by the new law will have a period of six months to make their activities legally compliant.

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Tags: offshore companies, Bulgarian Socialist Party, Movement for Rights and Freedoms, DPS, Yordan Tsonev, Delyan Peevski, BSP, public procurement, privatization, public-private partnership
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» To the forumComments (4)
#4
Mat - 23 Dec 2013 // 17:47:09

Because Ulen (which runs Bansko) is an offshore company - the comment was left sarcastically because I felt that the more intelligent reader would be aware of this and would pick up on my inference that well connected people had made sure that their interests were protected. Obviously I was mistaken and will attempt to make things clearer in the future for those readers not troubled by intellect.

#3
madoods - 23 Dec 2013 // 14:35:26

No foreign company should have control over another country's essential services - especially power, water, transport and food production. Where this has happened in other countries, the bills have skyrocketed and the customer service has plummeted

#2
Mattt - 22 Dec 2013 // 11:58:07

The article does not address ski resorts, ski resorts are not sport clubs, so why do you ask an obviously DUMB question ????

#1
Mat - 22 Dec 2013 // 11:08:41

Are they still going to be allowed to run ski resorts?

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