Scientific paper ID 1465 : 2017/3

The amendments to the Corporate Income Tax Act (SG No. 75/2016) in the Republic of Bulgaria specify the application of the ”weekend” tax. The objective is to create a mechanism for the taxation of the personal use of company assets, reported as costs in kind related to their own, hired or made available for use. Amendments and additions to tax legislation are justified by the need to harmonize our tax legislation with the established European practice in this field by taxing profits.

At present, there is no methodology for applying the new legal ments to the personal use of company assets in the formation of the tax financial result as a basic component of the tax base of the profit tax. There is uncertainty about its legal application and accounting coverage. Under the law, three alternative legal options are available from which taxable persons may apply if they have decided to use a company asset for both personal and corporate purposes.

The purpose of this report is to propose possible options for a correct legal and accounting interpretation of the ”weekend” tax in the light of the changes foreseen in the tax legislation in force since the beginning of 2017. The present research will help clarify the legal and accounting ments. For the precise application of tax legislation in respect of this new tax.