Archive for January, 2004

Borislav Boyanov & Co. Successfully Complete Second Phase Review of Milk Manufacturers Merger

Friday, January 30th, 2004

On December 18, 2003 Obedinena Mlechna Compania AD, one of the major milk and dairy producers in the country obtained a merger clearance from the Commission for the Protection of Competition to acquire Vitalact Milk AD, a major regional dairy producer, located in Varna. Borislav Boyanov & Co. became involved on behalf of Obedinena Mlechna Compania AD during a phase two investigation before the Bulgarian Commission for the Protection of Competition, opened over concerns of substantial strengthening of market dominance. The decision came into effect on January 30, 2004.

Tax Law Changes

Friday, January 9th, 2004

A package of changes to the Bulgarian tax laws was passed by Parliament in the last weeks of 2003 and took force and effect from January 1, 2004. Most of the changes affect the regime of company taxation regulated by the Corporate Income Taxation Act. The effective corporate tax rate is decreased from 23.5% to 19.5%. The changes to the rules of regulation of company financial results are intended to support the smooth transition between the applicable accountancy standards from Bulgarian to international. New concepts of corporate taxation will start to apply for insurance companies and state budget enterprises.