a) Which transactions must be documented (all transactions with associated enterprises, or only those which exceed a particular threshold)?
According to the recommendations of the Bulgarian transfer pricing guidelines, taxpayers should not be required to create and maintain full and complete transfer pricing documentation for transactions which do not exceed certain thresholds. Such thresholds are for example approximately EUR 100,000 for sale of goods and approximately EUR 200,000 for the sale financing.
b) What is the definition of “associated enterprises” for the purposes of this requirement?
The definition of “associated enterprises” generally complies with the definition contained in article 9 of the OECD Model Convention.
c) For EU countries, is the content of the documentation similar to that described in the EU Code of Conduct on transfer pricing documentation for associated enterprises (“EU TPD”)? If not, are taxpayers entitled to choose between the local requirements and the EU TPD?
The content of the documentation discussed in the Bulgarian transfer pricing guidelines is similar to that of the EUTPD.
d) Do taxpayers which are not established in your jurisdiction need to undertake to provide any specific information upon request? Can your tax authorities require the taxpayer in your jurisdiction to provide information which is located in another state?
Taxpayers not established within the territory of Bulgaria are not required to commit to provide information to the tax authorities.
Local taxpayers are generally obliged to provide any information or document, even if located abroad, which is necessary for the taxpayer’s tax liability to be determined and for tax to be levied.
e) If comparable studies are to be provided, do the tax authorities generally accept regional benchmark studies (e.g. pan-European benchmark studies)?
There are no restrictions in this respect but generally local comparables would be preferable.
f) What language(s) are to be used by taxpayers in submitting the transfer pricing documentation?
The official language is Bulgarian and all documents must be in Bulgarian. Foreign documents and data may be used but must be translated in the Bulgarian language.