site.btaParliament Backs Tax Code Revisions Enabling Exchange of Crypto-Asset User Data

Parliament adopted at first reading on Thursday amendments to the Tax and Social Insurance Procedure Code that would give tax authorities access to information on cryptocurrency users. The bill, submitted by the Council of Ministers, was approved by 136-4, with 10 abstentions.

The bill transposes into Bulgarian law two European Union directives concerning the exchange of information for tax purposes. Member States were required to transpose the provisions by December 31, 2025. Their main aim is to combat tax evasion and tax avoidance and strengthen tax transparency by improving administrative cooperation between EU countries.

The amendments are intended to enable tax authorities in the EU and partner countries to exchange information on people trading in crypto assets for taxation purposes. To meet these requirements, crypto-asset service providers would have to register and report information in one Member State.

Under the bill, crypto-asset service providers would be required to report information for each type of crypto asset in relation to which they have carried out transactions, transfers or exchanges. This would include the total gross amount received from transactions, the number of units traded, the number of purchases or sales of crypto assets against fiat currencies, as well as transactions conducted solely in crypto assets.

The information would have to be submitted electronically once a year, by June 30 of the year following the reporting year.

The bill also provides for changes concerning transfer pricing, bringing standards of the Organisation for Economic Co-operation and Development into national law.

MPs also voted to shorten the deadline for submitting proposals between first and second reading from seven days to five.