13 January 2014
The act that entered into force at January 1, 2014 aims at restricting companies subject to registration in offshore jurisdictions, their related parties and true owners to participate in 28 exhaustive economic and commercial areas.
The most distinctive prescriptions are related to the participation in licensing procedures for credit institutions, pension, insurance, financial, UCITS (collective investment schemes), prospecting and exploration o f natural resources, privatizations including with respect to municipal property, licensing under the Energy Act, the Gambling Act and etc.
The ban also covers the participation of such companies in Public Procurement Procedures (including civil partnerships under the Obligation and Contracts act), excise warehousing, and a range of other public services.
However there are some exceptions, for example the ban does not apply where the shares of such entity are traded on a regulated market of a Member State, or if the entity is part of economic group whose Parent is considered as a local entity, within a country, which has a double taxation agreement with the Republic of Bulgaria.
According to the act, fines that could be imposed start from BGN 50,000 to up to 1,000,000.
It is a rather short act, but with very broad subject. Thus further amendments or case law is shortly expected.
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