Appendix to Ordinance No. 28 of the MF and BNB

Appendix
to Art. 2, para. 1
Declaration under Art. 2, para. 1 of the Regulation on the information and documents submitted to payment service providers when carrying out cross-border transfers and payments to third countries (the Regulation) The Declaration is completed when carrying out a cross-border transfer or payment to a third country in the amount of 30,000 BGN or more or their equivalent in another currency.

The undersigned .......................................................................................................................................................................,
Personal ID Number (EGN)/Unique Civil Registration Number (LNCH) .................................., ID Card No. ............................................., issued by ........................................................
from .........................................................., valid until ................................................, permanent address: ..........................................
............................................................................................................................................................................................................, in personal capacity/ as a representative of:
(the incorrect option is crossed out)
......................................................................................................................................................................,
with Personal ID Number (EGN)/Unique Civil Registration Number (LNCH) .........................................., ID Card No. ................................................., issued by ..............................
............................. from ...................................................., valid until ............................................................., with permanent address: ............................................................................................................... (for natural persons), or ............................................................................................................................................................................................., Unified Commercial Code (EIK)/data from registration document ....................................................................................., seat and management address:
...............................................................................................................................................................................
(for legal entities)

I declare that:

Section I

1. I am carrying out a cross-border transfer or payment to a third country in the amount of: ...................................................................
   ...........................................................................................................................................................................................................
   (the amount of the cross-border transfer and payment is indicated in figures and words, and the type of currency is specified)

2. For the execution of the transfer or payment, I attach a document under Art. 2, para. 2 of the Regulation:
   ☐ Yes ☐ No
   (the correct option is marked)
   In case "Yes" is marked, the name, number and/or date of the document are specified:
   ............................................................................................................................... ...

Note. In case the person does not have a document from those listed in Art. 2, para. 2 of the Regulation, they complete points 2.1 and/or 2.2 and/or 2.3 of the declaration respectively.

2.1. The basis for the transfer or payment is outside those listed in Art. 2, para. 2 of the Regulation, and I attach another document confirming the basis and amount of the transfer or payment:
............................................................................................................................... ...
(specify the type of document, number and/or date of the document)

2.2. I attach an electronic document, reproduced on paper as a copy, certified by me, which confirms the basis and amount of the transfer or payment: ........................................................................................................................
............................................................................................................................................................................................................
(specify the type of document, number and/or date of the document)

2.3. I do not have a document confirming the basis and amount of the transfer or payment, and I declare the following purpose of the transfer or payment: ........................................................................................................................................................
............................................................................................................................................................................................................

3. I am carrying out a cross-border transfer or payment to a third country, representing income subject to taxation in accordance with Art. 37 and 38 of the Law on Taxes on Income of Natural Persons or in accordance with Art. 194 and 195 of the Law on Corporate Income Tax.
   ☐ Yes ☐ No
   (the correct option is marked)

Note. In case "Yes" is marked, the person completes the following Section II of the declaration.

Section II
(This section is completed only if the person has declared in Section I, point 3 of the declaration, that they order the carrying out of a cross-border transfer or payment to a third country, representing income subject to taxation in accordance with Art. 37 and 38 of the Law on Taxes on Income of Natural Persons or in accordance with Art. 194 and 195 of the Law on Corporate Income Tax.)

1. Type and gross amount of accrued income .............................................................................................................................
   .............................................................................................................................................................................................................

2. Amount of tax withheld in accordance with Art. 37 and 38 of the Law on Taxes on Income of Natural Persons (ZDДФЛ) or Art. 194 and 195 of the Law on Corporate Income Tax (ZKPO): .............................................................
   ............................................................................................................................................................................................................
   ............................................................................................................................................................................................................

3. An Agreement for the Avoidance of Double Taxation (AADT) has been attached, concluded with ................................................
   ............................................................................................................................................................................................................
   ............................................................................................................................................................................................................
   ☐ Yes ☐ No
   (the correct option is marked)

4. A statement from the National Revenue Agency regarding the existence of grounds for applying the AADT has been issued.
   ☐ Yes ☐ No
   (the correct option is marked)

I am aware that providing incorrect data entails criminal liability in accordance with Art. 313 of the Penal Code.

Date: ................. Signature of the declarant:

Instructions for completing the declaration under Art. 2, para. 1 of the Regulation on the information and documents, submitted to payment service providers when carrying out cross-border transfers and payments to third countries (the Regulation)

Section I of the declaration is completed in all cases of carrying out
a cross-border transfer or payment to a third country in the amount of 30,000 BGN or more or their equivalent in another currency:

• In point 1, the amount of the cross-border transfer or payment is indicated in figures and words, and the type of currency is specified.

• In point 2, it is indicated whether any of the documents under Art. 2, para. 2 of the Regulation are attached to the declaration, as follows:

• for import of goods – contract, invoice, customs declaration (SAD) or other import document;

• for delivery of goods or services – contract, invoice, declaration or other document confirming the basis and amount of the transfer or payment;

• for labor and non-labor remuneration – labor contract, management contract, civil contract, invoice or other document confirming the basis and amount of the transfer or payment;

• for author and license remuneration – contract, invoice or other document confirming the basis and amount of the transfer or payment;

• for personnel provision, education, training, qualification and requalification – contract, invoice or other document confirming the basis for the transfer or payment;

• for payment of pensions – a document confirming the basis for payment;

• for maintenance of diplomatic and consular representations of the Republic of Bulgaria, representations of ministries and departments or representations of local persons abroad – a document confirming the basis for the transfer or payment;

• for membership in an international organization – a document issued by the respective international organization;

• for dividends and liquidation shares – a resolution of the general meeting of the company;

• for creation, acquisition or transfer of an enterprise – a resolution of the competent body of the company and a contract;

• for acquisition of securities, shares, stakes, compensatory instruments, investment bonds and other financial assets – a document confirming the basis for the transfer or payment;

• for granting or repayment of a loan or monetary borrowing, including interest – a loan or monetary borrowing contract;

• for acquisition of immovable or movable property, passenger, aircraft or water transport vehicles – a contract, invoice or other document confirming the basis and amount of the transfer or payment;

• for fines, penalties and compensation for lost profits – a contract, invoice or a final decision of a judicial body confirming the basis and amount of the transfer or payment;

• for subscription to print and electronic publications – a contract, invoice or other document confirming the basis for payment;

• for pledges, winnings or prizes from participation in gambling games, participation in international competitions, contests, conferences, festivals, fairs or other similar events – a document confirming the basis and amount of the transfer or payment;

• for maintenance or other amounts due under decisions of local or foreign judicial authorities – a final decision of a judicial body;

• for transfers of currency, the amount of which does not exceed the amount of currency deposited via bank in the country – a certified copy of the document confirming the receipt of the transfer;

• for transfers of currency acquired from the deposit of a testator – a certificate of heirs and an extract from the account of the testator.
  In case "Yes" is marked, the name, number and/or date of the document are specified.
  In case the person does not have a document from those listed in Art. 2, para. 2 of the Regulation, they complete points 2.1 and/or 2.2 and/or 2.3 of the declaration respectively.

• Point 2.1 is completed if the person presents another document confirming the basis of the transfer or payment, outside the types of documents listed in Art. 2, para. 2 of the Regulation. The type of document, the number and/or date of the document are specified.

• Point 2.2 is completed if the person presents an electronic document within the meaning of the Law on Electronic Document and Electronic Signature or confirmation of the conclusion of a contract under the Law on Electronic Commerce, which confirm the basis and amount of the transfer or payment. In the presence of such documents, they are presented on paper in a copy certified by the person. The type of document, the number and/or date of the document are specified.

• Point 2.3 is completed if the person does not have a document confirming the basis and amount of the transfer or payment, specifying the purpose of the transfer or payment, such as:

• at own expense;

• for maintenance of spouses, descendants, ascendants and brothers and sisters, in the absence of a court order;

• others.

• In point 3, it is indicated whether the income is subject to taxation in accordance with Art. 37 and 38 of the Law on Taxes on Income of Natural Persons or in accordance with Art. 194 and 195 of the Law on Corporate Income Tax.
  Section II of the declaration is completed when the cross-border transfer or payment represents income subject to taxation in accordance with Art. 37 and 38 of the Law on Taxes on Income of Natural Persons or in accordance with Art. 194 and 195 of the Law on Corporate Income Tax.

1. Income under Art. 37 of the Law on Taxes on Income of Natural Persons (ZDДФЛ) represents:
   1.1 – compensation for lost profits and penalties of such character;
   1.2 – scholarships for study in the country and abroad;
   1.3 – interest, including those contained in leasing installments;
   1.4 – income from rent or from other paid provision for use of movable or immovable property, including installments under a lease agreement, in which the transfer of ownership rights is not expressly provided;
   1.5 – remuneration under franchise and factoring contracts;
   1.6 – author and license remuneration;
   1.7 – remuneration for technical services;
   1.8 – prizes and remuneration for activities carried out on the territory of the country by foreign natural persons – public figures, scientists, artists, culture and sports figures, including, when the income is paid/accrued through a third party, such as an impresario agency, production house and other intermediaries;
   1.9 – income from management and control, from participation in management and supervisory bodies of enterprises;
   1.10 – income from sale, exchange and other paid transfer of immovable property;
   1.11 – installments under a lease agreement, in which the transfer of ownership rights of immovable property is expressly provided;
   1.12 – income from sale, exchange and other paid transfer of shares, stakes, compensatory instruments, investment bonds and other financial assets, with the exception of income from exchange under Art. 38, para. 5 of the Law on Taxes on Income of Natural Persons (ZDДФЛ).

2. Income under Art. 38 of the Law on Taxes on Income of Natural Persons (ZDДФЛ) represents:
   2.1 – dividends for a sole trader;
   2.2 – dividends and liquidation shares for the benefit of a local or foreign natural person from a source in Bulgaria or for a local natural person from a source abroad;
   2.3 – the taxable income acquired from the exchange of shares and stakes in connection with the transformation of companies under Chapter Nineteen, Section II of the Law on Corporate Income Tax:
   a) from local natural persons upon the exchange of shares and stakes in local commercial companies for shares and stakes in local commercial companies or in companies abroad; b) from local natural persons upon the exchange of shares and stakes in commercial companies abroad for shares and stakes in commercial companies abroad or in local commercial companies; c) from foreign natural persons upon the exchange of shares and stakes in local commercial companies for shares and stakes in local commercial companies or in commercial companies abroad;
   2.4 – the taxable income from additional voluntary insurance, from voluntary health insurance and from "Life" insurance;
   2.5 – the income acquired by the person upon sale or exchange of movable property under Art. 13, para. 1, item 2, letter "g" of the Law on Taxes on Income of Natural Persons (ZDДФЛ);
   2.6 – the taxable income acquired by a member of a cooperative from interest on loans to the cooperative;
   2.7 – income from rent or other paid provision of property under the regime of condominium ownership in the form of management by a general meeting of owners, accrued/paid by enterprises and self-employed persons.

3. Income under Art. 194 and 195 of the Law on Corporate Income Tax (ZKPO) represents:
   3.1 – income from dividends and liquidation shares;
   3.2 – income of foreign legal entities.

• In point 1, the payer of income from a source in Bulgaria specifies the gross amount and the type of taxable income that has been accrued/paid.
• In point 2, the payer of the income specifies the amount of the final tax in accordance with Art. 37 or 38 of the Law on Taxes on Income of Natural Persons (ZDДФЛ) or Art. 194 or 195 of the Law on Corporate Income Tax (ZKPO), in case such has been withheld.
• In point 3, the payer of the income specifies the provisions and the name of the agreement for the avoidance of double taxation, in case such is applied, as well as the country with which it was concluded.
• In point 4, the payer specifies the presence or absence of a statement from the National Revenue Agency for the application of the AADT.