The reevaluation of assets for accounting and taxing purposes is according to Bulgarian Accounting Law.
- Reevaluation of assets for tax purposes is accompanied with deregistration from Value Added Tax.
- Evaluation of assets for taxation is according to law approved methods. They are used to define market prices when more than one person is in a financial relationship.
The following methods are used thus far:
1 Method - “Comparison of the prices without control” - it’s applicable for deals for the same type goods or services among connected partners or independent partners.
2. Method – “Market prices” – it’s applicable for deals for the same goods or services between connected partners with clients.
3. Method – “Increasing prime cost” – it’s applicable for evaluation of the custom (specific) prices, sales and delivery of goods, performing various services, uses of shared long-term assets or assets without analogue.