Greece Raises BEPS Concerns With Bulgaria

The heads of the Greek and Bulgarian tax authorities have met to discuss ways in which bilateral cooperation can be boosted with a view to reducing levels of tax avoidance and evasion, particularly with respect to Greek companies shifting profits to Bulgaria.

“The major issue of tax avoidance by Greek companies, who fictitiously transfer their tax base to Bulgaria, was at the heart of the discussions of the two tax administrations’ heads and executives,” said a statement from the Greek Independent Authority for Public Revenue, issued on January 19.

It has been suggested that many Greek businesses have transferred some of their operations to Bulgaria in recent times to avoid rising Greek taxes and to take advantage of Bulgaria’s low 10 percent rate of corporate tax.

According to the statement, the two sides discussed potentially strengthening the bilateral double tax treaty between Greece and Bulgaria and considered how legal instruments could be expanded to “combat tax evasion and abusive practices,” including exchange of information protocols.