ON SOME ISSUES REGARDING THE EXEMPTION FROM TAXATION WITHIN THE MEANING OF ART. 16 OF THE LAW ON CORPORATE INCOME TAXATION OR THE HIDDEN DISTRIBUTION OF PROFIT WITHIN THE MEANING OF § 1, ITEM 5 OF THE ADDITIONAL PROVISIONS OF THE LAW ON CORPORATE INCOME

Author

Assoc. Prof. Atanas Simeonov, PhD

Annotation

The scientific research covers the issues related to the payment of monetary bonuses according to the order established by the employer in favor of the manager of a company carrying out economic activity, who is also a partner, as well as in favor of other partners and/or other employees and/or workers, with which the company, as an employer, is in an employment relationship and whether this type of payment constitutes a deviation from taxation within the meaning of Art. 16 of the Act on Corporate Income Taxation or "hidden distribution of profit" in the sense of § 1, item 5 of the additional provisions of the Act on Corporate Income Taxation. The research sets itself the task of providing clarity on the issues raised in order to facilitate law enforcement in determining the corporate tax payable under the Corporate Income Tax Act in cases where the company carrying out economic activity, as an employer, has concluded an employment contract or equivalent to him with the manager, resp. the managers, partners and/or other workers and/or employees.

Keywords

cash bonus, employment relationship, tax exemption, corporate tax, frozen profit sharing.