As of 1 March 2013, the information and documents to be provided when making a cross-border transfer will be subject to new rules.
The cross-border transfer regime was amended in 2012 by means of changes to the Currency Act and requires the payer to specify the reason for each cross-border payment to the payment service provider.
The payer must also provide it with additional documents and information for transfers to countries outside the EU of BGN 30,000 or more (or the equivalent in another currency). The payment service providers are prohibited from making a cross-border transfer until the payer has provided a standard form declaration, a statement of the reasons for the transfer together with specific documentary evidence of those reasons.
The documents required depend on the reason for the transfer, such as:
- incorporation, acquisition or transfer of a business: a resolution of the competent body of the company and the respective agreement
- acquisition of shares, quota, securities: the relevant documents evidencing the acquisition
- payment of dividends or liquidation quota: a resolution of the competent body of the company
- acquisition of real estate or movable property: an agreement, invoice or other documents evidencing the grounds and the amount of the transfer/ payment
- disbursement or repayment of credit or loan agreements, including any interest: the credit or loan agreement
Where the documents evidencing a particular transfer are not specified in the new rules, the payer must present relevant documents certifying the grounds and the amount of the payment for each specific case.
The declaration is required for each cross-border transfer to countries outside the EU of BGN 30,000 or more, including:
- where the payer does not have documentary evidence, and so must certify the reasons for and the amount of the payment (including for transfers to its own account)
- to certify that any paper versions are true copies of any electronic documents used as evidence for the reasons/amount of payment
- to state the amount of tax withheld or the applicable double tax treaty, where the sum transferred is income liable to taxation in Bulgaria.
Law: Ordinance No 28 on the Information and Documents provided to Payment Services Providers in Performing Cross-Border Transfers and Payments to Third Countries
