BULGARIAN INDUSTRIAL ASSOCIATIONBULGARIAN INDUSTRIAL ASSOCIATION UNION OF THE BULGARIAN BUSINESS The Bulgarian experience in helping businesses to move to formality . Informal Economy

BULGARIAN INDUSTRIAL ASSOCIATIONBULGARIAN INDUSTRIAL ASSOCIATIONUNION OF THE BULGARIAN BUSINESSUNION OF THE BULGARIAN BUSINESS

The Bulgarian experience in helping The Bulgarian experience in helping

businesses to move to formalitybusinesses to move to formality

www.biawww.bia--bg.combg.com

Informal Economy Symposium, ILO, Geneva, Nov 2007

The Contribution payment The Contribution payment centrescentres in Bulgariain BulgariaAlso known in other countries asAlso known in other countries as

Payroll Administration ServicesPayroll Administration ServicesOrOr

Social SecretariatsSocial Secretariats------------------------------------------------------------------------------------------------------------------

Legally based on a government ordinance from Legally based on a government ordinance from

2001 by virtue of the Social Security Code2001 by virtue of the Social Security Code

www.biawww.bia--bg.combg.comBulgarian Industrial AssociationBulgarian Industrial AssociationUNION OF THE BULGARIAN BUSINESSUNION OF THE BULGARIAN BUSINESS


The Contribution payment The Contribution payment centrescentres (CPC) (CPC) and their and their main objectivesmain objectives::

•• to collect contributions due for public social security, to collect contributions due for public social security, supplementary mandatory pension insurance, health supplementary mandatory pension insurance, health insurance, and to transfer them to the respective insurance, and to transfer them to the respective accounts of the National Revenue Agencyaccounts of the National Revenue Agency

•• in case of occurrence of an insurance event to pay in case of occurrence of an insurance event to pay benefits and assistance due to the insured personsbenefits and assistance due to the insured persons

•• to create and keep records related to the social to create and keep records related to the social security of the CPC members security of the CPC members



Project started in Bulgaria beginning of 2005 with the Project started in Bulgaria beginning of 2005 with the active support by the ILO Bureau for Employersactive support by the ILO Bureau for Employers’’Activities (ACT/EMP)Activities (ACT/EMP)

7 contribution payment 7 contribution payment centrescentres (CPC) set up by (CPC) set up by regional employersregional employers’’ organisationsorganisations /part of BIA network//part of BIA network/

-- in major Bulgarian citiesin major Bulgarian cities

Bulgarian association of CPC established on 28 Bulgarian association of CPC established on 28 November 2006 /collective member of BIA/November 2006 /collective member of BIA/

The network of regional CPC created by using the The network of regional CPC created by using the model of the Belgian licensed social secretariatsmodel of the Belgian licensed social secretariats


Targovishte Varna

StaraZagora

Sofia

Burgas

Haskovo

Pleven

Botevgrad

Contribution Payment Centres by Contribution Payment Centres by EOEO’’ss in the BIA networkin the BIA network

BULGARIA


www.biawww.bia--bg.combg.comBulgarian Industrial AssociationBulgarian Industrial Association

Why CPC by EmployersWhy CPC by Employers’’ OrganisationsOrganisations??

•• EmployersEmployers’’ organisationsorganisations must inform members about must inform members about the regulations and their obligationsthe regulations and their obligations•• EmployersEmployers’’ organisationsorganisations have the opportunity to have the opportunity to provide more and better quality services to membersprovide more and better quality services to members•• Members are assisted in dealing with the complexity of Members are assisted in dealing with the complexity of new legislative acts and regulations on taxes, social new legislative acts and regulations on taxes, social contributions, registration, licenses etc. contributions, registration, licenses etc. •• Brings to light Brings to light SMESME’’ss and craftsmen activities and craftsmen activities –– small small companies do not want to emerge from the shadow companies do not want to emerge from the shadow economy because of the social security paperwork, lack economy because of the social security paperwork, lack of knowledge of legal regulations and time to do all thisof knowledge of legal regulations and time to do all this••

UNION OF THE BULGARIAN BUSINESSUNION OF THE BULGARIAN BUSINESS


CPC CPC –– National Revenue Agency and National National Revenue Agency and National Social Security InstituteSocial Security Institute

•• CPC can work as an intermediary between the social CPC can work as an intermediary between the social security institutions and companiessecurity institutions and companies

•• Software developed to communicate with NRA and Software developed to communicate with NRA and NSSI and to submit declarations via eNSSI and to submit declarations via e--signaturesignature

•• These institutions have more confidence in the These institutions have more confidence in the propriety and accuracy of the propriety and accuracy of the CPCsCPCs

•• Companies would benefit from being relieved of the Companies would benefit from being relieved of the burden of document preparation and spending a lot of burden of document preparation and spending a lot of time standing in line in the authorities offices time standing in line in the authorities offices


BULGARIAN INDUSTRIAL ASSOCIATIONBULGARIAN INDUSTRIAL ASSOCIATION

UNION OF THE BULGARIAN BUSINESSUNION OF THE BULGARIAN BUSINESS

Thank you for your attention!Thank you for your attention!

Merci de Merci de votrevotre attention!attention!

Martin Martin StoyanovStoyanov

martin@[email protected]

www.biawww.bia--bg.combg.com

mailto:[email protected]

Documents

BULGARIAN INDUSTRIAL ASSOCIATIONBULGARIAN INDUSTRIAL ASSOCIATION UNION OF THE BULGARIAN BUSINESS The Bulgarian experience in helping businesses to move to formality . Informal Economy