Bulgaria 'Satisfied' with Greece's Move to Scrap Withhdolding Tax

The Bulgarian Finance Ministry has voiced its content with the move by Greece to revoke a 26% withholding tax on transactions from sources in Bulgaria, Cyprus and Ireland.

In a statement, the ministry cites a ruling by the European Commission issued after Sofia lodged a complaint, objecting to what it calls a "discriminatory" tax that is incompatible with EU law and "disproportionate to the intended goals."

Under the ruling, EU legislation on free movements of goods and services, the ministry says.

"After receiving the statement of the European Commission Bulgaria could have brought a lawsuit at the Court of Justice of the European Union in case Greece did not revoke the provisions."

"Bulgaria did not file a complaint... due to the expected and announced intention from the Greek side to scrap the tax," despite the opportunity it had been granted to do so.

Last week a document obtained by the FT suggested that Athens was being put under pressure to scrap the withholding tax as part of commitments it has to stick to as part of the new agreement that will secure EUR 86 B in funding from international lenders.

Greek Parliament's move on Friday to adopt the draft terms of a third bailout program also means the tax is now canceled.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!