UniCredit Bulbank AD
Summary:
Government securities, traded on a regulated market, will be exempted from capital gains tax
Fri, 08/01/2016
The latest changes to the Bulgarian Corporate Income Tax Act add government securities traded on a regulated market to the list of financial instruments that are exempted from capital gainst tax (CGT).
Thus, as of 1 January 2016 exempted from CGT are trades:
- in units and shares of collective investment schemes and national investment funds concluded on a regulated market
- in shares and rights that can be exercised to participate in capital increases concluded on a regulated market
- in government securities concluded on a regulated market
- executed under the terms and according to the procedures for repurchase or redemption by collective investment schemes and national investment funds, which have been admitted to trading on a regulated market in Bulgaria or in another EU/EEA country
- executed under the terms and in accordance with the procedures for tender offers as outlined in the Public Offering of Securities Act or similar provisions in other EU/EEA countries
The standard CGT in Bulgaria is 10%.
A regulated market is any multilateral system which is authorized and functions in accordance with the provisions of Title III of Directive 2004/39/EC on markets in financial instruments.
Impact on investors: Investors can benefit from no CGT on transactions in government securities traded on a regulated market.