DGKV's partner Viara Todorova and Senior Associate Ivan Punev have contributed the article "TELEWORKING FROM BULGARIA: DIFFERENT ARRANGEMENTS HAVE DIFFERENT CONSEQUENCES" to the March edition of Insights, the Tax Journal of Ruchelman P.L.L.C.

Bulgaria has been developing not only as a hub for digital nomads and IT people but also as a pool of highly qualified fintech, financial, cyber security and other professional people teleworking from Bulgaria for foreign companies. With remote working on the rise as the new normal, special consideration should be given to the respective complications for a foreign company sourcing local workforce in Bulgarian context.

The article addresses the specific tax issues a foreign company faces when looking to engage local talent to carry on functions remotely from Bulgaria. Different arrangements entail their own set of tax obligations for each of the parties involved. Adding to the mix, the factors relevant for the P.E. exposure, especially for a remote arrangement are also among the main points for analysis. Additional aspects could involve VAT leakage and payment mode, including in cryptocurrency.

© Ruchelman P.L.L.C. Reprinted from Insights, Volume 10 Number 2 (March 2023)

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