the Bulgarian tax obligation, which would have been levied if the profit or income had originated from Bulgaria. Loses are carried forward over the following five years (ten years - for banks). Carry-forward of foreign source losses is restricted. Loss carry-back is not permitted. Tax Exemptions. Entities, investing in regions with a high unemployment, enjoy a reduction of the corporate income tax if the investment is in the form of acquisition, modernization or reconstruction of tangible fixed assets such as buildings, equipment, transmitters, electricity transmitters, and telecommunication lines. The fund for the investment is generated from the contributions made by shareholders for acquisition of new shares (including on incorporation) in the company making the investment. If the requirements for the tax reduction are met the corporate tax is reduced by an amount representing 10% of the amount of the share contributions used in the above manner. The sum for the reduction is accounted for as reserves and if greater than the corporate tax in the respective year it can be used to reduce the corporate tax in the following five years.Violations and Fines. A fine of at least BGN 100, but not exceeding BGN 500, shall be imposed on any person under an obligation pursuant to the Commerce Law which does not apply for registration within the prescribed time periods or does not present documents or signatures provided for in this Law. If, after a fine has been imposed, the person under an obligation does not apply for registration or does not present the documents or signatures within the time period determined by the court, further fines shall be imposed upon such person until the acts are performed. Fines shall also be imposed upon officials who, when they are obliged to do so: have not informed officially the respective district court of the occurrence of a circumstance which is subject to registration, and do not undertake the necessary act...
