Automatic exchange of information

In 2014 Bulgaria and the USA signed the Intergovernmental Agreement, effective as of 01.07.2014 for the implementation of the US tax act (FATCA - Foreign Account Tax Compliance Act). The objective of this Act is to enable the US tax authorities to fight trans-border abuse by American individuals, who have accounts and financial assets abroad.

According to the agreement the Bulgarian banks must strictly adhere to FATCA‘s provisions, as well as to register with the US Internal Revenue Service (IRS) as participating financial institutions and to acquire a GIIN - Global Intermediary Identification Number. BACB AD is registered with the IRS as a Registered Deemed-Compliant Financial Institution and has acquired the following GIIN: DG4L8E.99999.SL.100.

At a session of the Council of Ministers held on 17.06.2015, the Bulgarian Government approved the Convention on Mutual Administrative Assistance in Tax Matters, prepared jointly by the Organization for Economic Cooperation and Development (OECD) and the European Council, and thus Bulgaria accepted to apply the CRS - Common Reporting Standard, especiallydeveloped by the OECD and ensuring transparency between the individual countries, with respect to the accounts and assets of persons, for whom information is submitted.

COUNCIL DIRECTIVE 2014/107/EU amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation was published on 16.12.2014 in the Official Gazette of the EU, expanding the scope of the exchange of information between the EU Member States, including with respect to the specific financial accounts, maintained by the financial institutions, the income, generated by the respective account and the account balances.

By virtue of the aforesaid documents and in compliance with the requirements of the Tax and Social Security Procedure Code /TSSPC/ BACB AD collects and discloses to the tax authorities financial information for the purposes of the automatic exchange in the field of taxation.

BACB hereby notifies its clients that it will strictly check and identify whether or not the Bank’s clients fall within the scope of the said documents and for such clients, BACB will regularly disclose information to the National Revenue Agency (NRA) on an annual basis, regarding their personal data, their account balances as at the end of the year, the interest income obtained during the respective year, as well as any other information, as required for the purposes of the automatic exchange.