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December, 2015

www.amcham.bg SOFIA, December, 2015 Table of Contents

Report of the Board of Directors page 1

Key Performance Indicators 2015 page 3

Membership page 5

AmCham Events page 6

Events at Focus page 7

2015 Policy / Advocacy Report page 10

Comparative Analysis Budget 2015-2016 page 12

Аuditor’s Report 2014 page 13

Acknowledgments page 16 Report of the Board of Directors FOR THE YEAR 2015

Dear AmCham Members:

On behalf of the American Chamber of Commerce Board Bank of America, Roderick Moore, Charge d’affaires, U.S. of Directors it is my pleasure to present you with our Embassy in Bulgaria and Daniel Mitov, Minister of Foreign Annual Report for 2015. Affairs. Over 700 members and guests joined both events. President Rossen Plevneliev awarded the Chamber with The information below highlights major events and initia- the honorary seal of the President of the Republic of tives for the Chamber in 2015 – our vigorous involvement Bulgaria. He underscored AmCham’s role in the establish- in advocacy and transparent lobbying, our devotion to ment of successful business models in the country. continuously working towards achieving a more sustain- able business climate in the country and our efforts in Among the Chamber’s pivotal projects in 2015 was the extending our network, within the country and abroad. top notch forum on the rule of law which was organized by AmCham Bulgaria, Confindustria Bulgaria and French- Year 2015 was outstanding for the Chamber and its mem- Bulgarian Chamber of Commerce and Industry on May bers as we celebrated 20 years of presence in Bulgaria. 14th. The forum gathered together over 200 participants, th AmCham Bulgaria celebrated its 20 Anniversary on among them: government, judiciary, diplomats, business, th October 12 by hosting a roundtable discussion and gala legislators and media. Deputy Prime Minister Meglena dinner guided by the motto “Success is in Your Hands”. Kuneva, Minister of Justice Hristo Ivanov, US Ambassador Among the prominent speakers at both events were the to Bulgaria Marcie Ries, the French Ambassador Xavier President of the Republic Rosen Plevneliev, the Prime Lapeyre de Cabanes and Chargé d’Affaires a.i. of the Minister Boyko Borissov, Kenneth Hyatt, Deputy Under Embassy of Italy in Sofia Emanuele Pollio, Roberto Mascali, Secretary at the U.S, Department of Commerce, Joseph Executive Director, Confindustria Bulgaria, Stephan Quinlan, Managing Director & Chief Market Strategist, Delahaye, French-Bulgarian Chamber of Commerce and Industry were adamant that Bulgaria faces an urgent need to strengthen the rule of law and fight corruption.

In the beginning of 2015 the AmCham launched a new initiative: M2M Executive Meetings, which offer a unique opportunity to meet fellow AmCham members at execu- tive level. Every meeting creates possibilities to expand the network of contacts, potential clients and suppliers of both parties. Three meetings took place so far that targeted the sectors of food and beverage, logistics and transportation, couriers, manufacturing, relocation and moving, agriculture, human resources, manufacturing.

In order to facilitate contacts between Sofia-based busi- nesses and regional ones, the Chamber, the U.S. Embassy and the U.S. Commercial Service in Bulgaria, and the Municipality of Stara Zagora Chamber organised a roundta- ble in Stara Zagora. The opportunities for joint business proj- ects between the Stara Zagora Region and U.S. companies were presented at the roundtable entitled “U.S.-Bulgaria Economic Partnership for More Business Opportunities”.

AmCham Committees were especially active during the year in advocating for members’ interests in sector spe- cific policy and legislative issues. They developed a series

Report of the Board of Directors 1 of official proposals addressed to the Government for Health Care. The committee successfully partnered with improving the existing legislative framework in Bulgaria. AmCham EU and the US Embassy in Bulgaria. A joint initiative in key economic and social sectors was developed with the German-Bulgarian Chamber of In the past year AmCham had the pleasure of partner- Commerce (GBCIC), the Austrian Business Circle (ABC), ing with several other institutions, business organiza- the French-Bulgarian Trade and Industry Chamber (FBTIK) tions and bilateral chambers: the U.S. Embassy in Sofia, and Confindustria Bulgaria. the Bulgarian Chamber of Commerce and Industry, the German-Bulgarian Chamber of Industry and Commerce, The Public Procurement and EU Funding Advisory the French-Bulgarian Chamber of Commerce and Industry, Committee promoted transparency and equal access/ Confindustria Bulgaria and the Austrian Business Circle. participation in public procurement. The committee drafted many comments and proposals related to legisla- In conclusion, on behalf of the Board of Directors, I tive initiatives in the area of public procurement and PPPs would like to assure the AmCham membership that we and numerous proposals were taken into consideration will continue to work hard in 2016 to fulfil our mission and included in the new Public Procurement Act. and goals. We will strive more than ever to maintain a high level of engagement within our membership and to The Energy and Mineral Resources Committee drafted focus our activities on matters of importance to you, our position papers related to legislative initiatives and members, based on your input and constructive feedback. amendments, e.g. KEVR’s decisions regarding payment of renewable energy tariffs; Open Letter on the role of KEVR Our achievements would not have been possible without for the stability of the Bulgarian Energy System, etc. the continuous support and trust shown by our members over the years, the partnership we have with the U.S. The Human Resources Committee provided a platform Embassy and the U.S. Commercial Service and the com- for exchange of human resources’ best practices and mitted work by the AmCham Office team. trends related to the latest amendments to the Labor Code. Experts were invited to explain details regarding On behalf of the Chamber, I would like to sincerely thank the new Labor code amendments and the immigration you for the vote of confidence and I look forward to con- rules for employment of foreign personnel and blue cards tinuing our productive cooperation in the years ahead! procedures. The committee formulated positions related to improvement and modernization of the labor legisla- tion, namely the introduction of more flexible forms of employment. Sincerely, Healthcare Committee dealt with priority issues as health- care system financing, access to innovations, clinical trials, e-health, workforce development and retention, business ethics and anti-corruption practices. The committee rep- resentatives had meetings with the Minister of Health, Krassimira Chemishanska, representatives of the Supervisory Board of the National President Health Insurance Fund, and representatives of Stanford American Chamber of Commerce in Bulgaria

2 Report of the Board of Directors AmCham Key Performance Indicators 2015

KPI 2015 2016 Description Plan/Actual Plan MEMBERSHIP 304 / 323 323 Period 01-11/2015 EVENTS Conferences and 4 / 4 2 Roundtable with EBRD – Transition Report 2014 – Feb 3 Roundtables Stara Zagora Business Mission with US Embassy – Mar 12 Rule of Law Conference with Confindustria and French Chamber – May 14 20th Anniversary Conference – October 20 Business 8 / 13 8 Member-to-Member Executive Meetings – April 28, June 17, Nov 9 Meetings – Business Luncheon with Prime Minister – B.Borisov – 30 Jan Luncheons, Breakfasts & Business Breakfsat with AUBG – 16 Jan General Business Breakfast with Auxionize – 22 Jan Assembly Business Breakfast with PWC – Feb 6 Business Breakfast with IDC – Feb 26 Business Breakfast with AON – March 20 Business Breakfast with Deloitte – June 23 Meeting with the Plovdiv Munipality – Sept 17 Business Breakfast with AIG – Nov 18 General Assembly – Dec 8 Big Social / 5 / 4 4 AmCham Ski Tournament – March 7-8 Sports Events Independence Day Celebration – July 4 20th Anniversary Gala Dinner – Oct 12 Thanksgiving Community Dinner – Nov 24 Networking 6 / 6 6 Business After Hours with Unicredit – Jan 27 Receptions Business After Hours with Penkov, Markov & Partners – Feb 19 Meet New Members Party, March 24 Business After Hours with EVS – May 26 Meet New Members Party, June 9 Summer Party with German and French Chamber – June 25 INTERNATIONAL COOPERATION Events / Projects 4 / 3 4 AmCham EU Brussels Briefing & Transatlantic Conference – March 18-19 AmChams in Europe Transatlantic Conference, San Francisco, Washington DC – May 24-June 4 AmChams in Europe Best Practices Conference, Italy – September 30 – Oct 4

Key Performance Indicators 2015 3 KPI 2015 2016 Description Plan/Actual Plan LOCAL COOPERATION Events / Projects 2 / 6 4 Capital Meeting with the Government – Jan 20 AON Best Employeers Study & Awards BCAF/AmCham 100 Jobs Project OSAC Events with the US Embassy Global Compact Network "Proud with my parents' work" Top ICT Employer, JobTiger & ICT Media PUBLICATIONS AmCham Daily 5 days per week AmCham Magazine 10 issues, 24/28 pages Yearbook 2015 500 copies, A4 Visit Europe Guide – Bulgaria, Chezh 6 issues per year Republic, Romania, Moldova, Ukraine COMMITTEES 4 / 2 4 Human Resources Committee 3 / 2 4 Healthcare Committee 5 / 4 5 Public Procurement and EU Funding Advisory Committee 4 / 2 4 Quality Management Working Group 3 / 1 4 Tax Committee 3 / 4 5 Energy & Mineral Resources Committee LOBBYING Position Paper on the amendments in the Water Act Position paper on the public consultation on the Innovation and Competitiveness Operational Programme Position paper on the draft for the Act for amendment and supplementation to the Water Act Proposals for amendments to the Public Procurement Act Proposals for amendments to the General Data Protection Regulation • Energy Sector Issue: – Position paper on the role of KEVR and the stability of the Bulgarian energy system – Position paper on the KEVR’s decisions on payment of renewable energy tariffs – Position paper on the proposals for amendment and addition to the Electricity Trading Rules from 22 October 2015 Position paper on the introduction of the public health tax • Tobacco Sector Issues: – Position Paper on the foreseen changes in the excise policy on tobacco products and changes in the excise structure for the following years – Request for presidential veto on the draft law amending the excise duties and tax warehouses act • Joint Initiative with the German-Bulgarian Chamber of Commerce (GBCIC), the Austrian Business Circle (ABC), the French-Bulgarian Trade and Industry Chamber (FBTIK) and Confindustria Bulgaria – is developing a package of necessary measures (in the format of Memorandums and following Position Papers) in key economic and social sectors- taxation, energy and natural resources, agriculture and food industry, training and qualification, and procurement and Euro funding Participation in Education 2030 – Education Bulgaria 2030 is multisectoral informal grouping of active socially responsible organizations and individuals , representatives of public , business and non- governmental sector in Bulgaria, united by a common vision of quality education, equal access to educational and vocational opportunities and successful realization of young people 21 century.

4 Key Performance Indicators 2015 AmCham Membership 2015

Membership Development In 2015 we are facing an increase in the membership for Membership Structure by Membership Type, a first time since 2008, which is a very positive sign – as as of November 30, 2015 of November 30 the members number 323 and 31 new members joined the Chamber. 4.02% 0.31% 323 314 6.50% 301 308 306 306 302 304 284

248 228 35.91% 209 193 176

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 53.25%

Membership Structure by Field of Business, as of November 30, 2015 The sectors with biggest shares among the membership are ICT with 10.5%, Consultancy and Legal services with 9.3%, followed by Manufacturing with 6.5%.

MEMBERSHIP 2015 5 AmCham Events in 2015

 January 16th, 2015, Business Breakfast with AUBG:  Partner Event: May 14th, Conference on the Rule of “Talent Management in the Entrepreneurial World” Law: The Judicial Reform in Bulgaria and Alternative with guest speaker Kevin Aspergen, President of Dispute Resolution AUBG  May 26th, Business After Hours Cocktail with EVS  January 22, 2015, AmCham Business Breakfast with Translations Auxionize  June 9th, Meet the New Members Party  January 27th, 2015, Business after Hours with UniCredit Bulbank  June 17th, M2M Executive Meetings

th  January 30 , 2015 Business Lunch with Prime  June 23d, Business Breakfast on Transfer Pricing Cross- Minister Boyko Borissov: Priorities of the Bulgarian Border Dispute Resolution with Deloitte Bulgaria Government in 2015: Policies and Measures for Promoting Economic Growth, Attracting Investments Partner Event: June 25th, One More Summer Party and Implementing the Operational Programs 

July 4th, AmCham Independence Day Celebration  Partner Event: February 3d, 2015, Presentation of  EBRD Transition Report 2014  September 17th, Presentation “Plovdiv: Business and Investment Destination”  February 19th, Business after Hours – Art cocktail with Penkov, Markov&Partners  October 12th, AmCham 20th Anniversary Celebrations:  February 26th, Business Breakfast: IDC Predictions – Roundtable Discussion “Regional Challenges in 2015 Light of the Global Geostrategic Processes” at Sofia Hotel Balkan  March 7th–8th, AmCham Ski Tournament – Gala Dinner at Sofia Event Center  Partner Event: March 12th, Regional Roundtable in  November 9th, 2015, AmCham M2M Executive Stara Zagora “U.S.–Bulgaria Economic Partnership for Meetings More Business Opportunities”  November 18th, AmCham and AIG Business Breakfast:  March 20th: AmCham Business Breakfast with AON: “Practical and Legal Aspects of Directors and Officers The proper employee benefits communication – Key Liability” trends for 2015  November 24th, AmCham Thanksgiving Charity Dinner  March 24th, Meet New Members Party  December 8th, AmCham General Assembly Meeting  April 28th, M2M Executive Meetings  December 15th, Meet the New Members Party

6 Events AmCham Events at Focus

Members Meet with Bulgaria’s Prime Minister Boyko Borissov AmCham had its traditional business lunch with the Prime Minister Boyko Borisov on January 30th, 2015. Mr. Borissov elaborated on the topic: Priorities of the Bulgarian Government in 2015: Policies and Measures for Promoting Economic Growth, Attracting Investments and Implementing the Operational Programs. In front of 300 members, diplomats, govern- ment officials and media the Prime Minister addressed many issues as energy diversification and efficiency, tax and financial issues, education. He also focused on the four key areas of partnership between Bulgaria and USA which were the focus of the discussion during the latest visit to Bulgaria of the Secretary of State, John Kerry.

The business lunch was also attended by Vice Premier Tomislav Donchev, Energy Minister Temenuzhka Petkova, Economy Minister Bozhidar Lukarski and Health Minister Petar Moskov. During the meeting U.S. Ambassador to Bulgaria Marcie Ries voiced readiness to strengthen “the good partner- ship between the United States and Bulgaria.”

AmCham Business Mission: U.S. Investors Outline Opportunities for Joint Projects with the Stara Zagora Region The opportunities for joint business projects between the Stara Zagora Region and U.S. companies were presented at the “U.S.-Bulgaria Economic Partnership for More Business Opportunities” – roundtable co- organized by the American Chamber of Commerce in Bulgaria, the U.S. Embassy and the U.S. Commercial Service in Bulgaria, and the Municipality of Stara Zagora on March 12th.

“The regional business missions of AmCham Bulgaria aim to facilitate con- tacts between Sofia-based businesses and regional ones,” said Valentin Georgiev, Executive Director of the Chamber. The mayor of Stara Zagora, Zhivko Todorov, welcomed some 100 guests, among them representatives from local companies and organizations interested in learning more about business opportunities with the United States.

Olivier Marquette, Managing Director, AES Corporation stressed the importance of business for the development of local communities. Garry Levesley, Chief Executive Officer, ContourGlobal Maritsa East 3 AD focused on enhancing the operating environment with its transparent procurement procedures, anti-corruption practices and innovative business solutions.

Events 7 Rule of Law Forum: Government, Ambassadors and Business Agree on Urgency of Judicial Reform Deputy Prime Minister Meglena Kuneva, Minister of Justice Hristo Ivanov, US Ambassador to Bulgaria Marcie Ries, the French Ambassador Xavier Lapeyre de Cabanes and Chargé d’Affaires a.i. of the Embassy of Italy in Sofia Emanuele Pollio, Roberto Mascali, Executive Director, Confindustria Bulgaria, Stephan Delahaye, French-Bulgarian Chamber of Commerce and Industry were adamant that Bulgaria faces an urgent need to strengthen the rule of law and fight corruption. The statements were made at the forum of AmCham Bulgaria, Confindustria Bulgaria and French-Bulgarian Chamber of Commerce and Industry on the rule of law and judicial reform held on May 14th. The forum gathered together over 200 participants, among them: government, judiciary, diplomats, business, legislators and media.

The judicial reform was elaborated by Lozan Panov, Chairman, Supreme Cassation Court, Rumen Nenkov, Judge, Constitutional Court, Borislav Belazelkov, Chairman, Bulgarian Judges Association.

The alternative dispute resolution and the perspectives for the business were discussed by Christian Takov, Chairman, Arbitration Court at the Bulgarian Chamber of Commerce and Industry, Victor Schachter, President, Foundation for Sustainable Rule of Law Initiatives, Mauro Bove, Civil Trial Law Professor, University of Perugia, Assen Georgiev, Partner, Head of “Commercial, Regulatory and Disputes” at CMS Cameron McKenna, Omourtag Petkov, Partner, Djingov, Gouginski, Kyutchukov & Velichkov, Reneta Petkova, Partner, Deloitte Legal Law Firm.

American Independence Day Celebration In 2015 AmCham Bulgaria celebrated American Independence Day on the fourth of July for the twentieth time. The chamber marked the 239th anniversary of the Declaration of Independence of the United States of America with 3,000 guests at the American College of Sofia.

AmCham President, Dr. Krassimira Chemishanska, welcomed the guests together with Joseph Krinock from the U.S. Embassy, the new president of the American College of Sofia, Dr. Richard Ewing, and AmCham’s Executive Director Valentin Georgiev.

Families, friends and partners came together once again to spend an unforgettable 4th of July in a beautiful weather, and with delicious foods and beverages, a fun field for the kids, all accompanied by brilliant music from the band Dirty Purchase. AmCham raised 4,700 BGN from the sales of charity raffle tickets that offered the chance of winning 43 prizes gener- ously provided by AmCham members and partners.

8 Events AmCham Marks 20th Anniversary with a Roundtable Discussion and Gala Dinner To commemorate the outstanding results, achieved in cooperation with our dedicated members throughout the years, AmCham Bulgaria cel- ebrated its 20th Anniversary on October 12th by hosting a roundtable discussion and gala dinner. At the discussion on the topic of “Regional Challenges in the Light of the Global Geostrategic Processes”, the Prime Minister Boyko Borissov congratulated the Chamber on its achievements and presented the Government’s views on the proposed topics. Kenneth Hyatt, Deputy Under Secretary at the U.S, Department of Commerce shared with the audience of over 300 representatives of the business, government, diplomatic corps and the media: “The AmCham has been a vital and powerful bridge between U.S. and Bulgaria and the organization must stay at the heart of this relationship. We look forward to continu- ing work together. Great work has already been done: to promote best practices and government procurement, to help share U.S. practices on regulatory impact assessment, a work to convey the message on TTIP opportunities to the small businesses”. Joseph Quinlan, Managing Director & Chief Market Strategist, Bank of America, Roderick Moore, Charge d’affaires, U.S. Embassy in Bulgaria and Daniel Mitov, Minister of Foreign Affairs were among the speakers. Temenuzhka Petkova, Minister of Energy and Vladislav Goranov, Minister of Finance also participated in the discus- sion and answered questions. During the gala dinner, which gathered over 400 guests, President Rossen Plevneliev awarded the Chamber with the honorary seal of the President of the Republic of Bulgaria. He underscored AmCham’s role in the establishment of successful business models in the country. Deputy Prime Minister and Minister of Labor and Social Policy Ivailo Kalfin, Nikolina Angelkova, Minister of Tourism and other officials attended the gala. People who have had a longstanding connection to AmCham lined up on the stage in an emotional tribute. Among them were Rossen Plevneliev, Philip Bay, Anthony Hassiotis, Kenneth Lefkowitz, Tanya Kosseva-Boshova, David Hampson.

M2M Executive Meetings In the beginning of 2015 the AmCham launched a new event: M2M Executive Meetings, which offer a unique opportunity to meet fellow AmCham members at executive level. Every meeting creates possibilities to expand the network of contacts, potential clients and suppliers of both parties.

Three meetings took place so far that targeted the sectors of food and beverage, logistics and transportation, couriers, manufacturing, relocation and moving, agriculture, human resources.

AmCham Thanksgiving Dinner AmCham succeeded to collect 60 500 BGN in 2015 for charity initia- tives and projects. The AmCham Thanksgiving community dinner held on November 24th, 2015 collected 46 500 BGN in total from open bid, silent auction, raffle and scholarships donated by companies. The funds were designated for “Get ready to succeed” program and “We Can” fund of Bulgarian Charities Aid Foundation (BCAF). The auction and raffle items were raised for scholarships in favor of orphan students in secondary schools and universities.

Events 9 2015 Policy / Advocacy Report

CSR Committee

Chair: Elitza Barakova, BCAF Initiatives: Net4Work Project (“100 Jobs”) developed by Forton International and the Bulgarian Charities Aid Foundation (BCAF) under the umbrella of AmCham Bulgaria. The project Net4Work aims to increase the employment and the integration of disadvantaged youth based on actual market needs and opportunities-driven partnerships between businesses, NGOs, universities, local authorities and communities.

Energy and Mineral Resources Committee Co-Chairs: Alex Nestor, AmCham Vice-President Aneliya Erdly, Silver Ridge Power

Issues and Drafting position papers related to legislative initiatives and ammendments (e.g. KEVR’s Advocacy Activities: Decisions regarding payment of renewable energy tariffs; Open Letter on the role of KEVR for the stability of the Bulgarian Energy System; proposals for amendment and addition to the Electricity Trading Rules, etc.); Provision of comments and recommendations for ensuring sta- bility, transparency and predictability of the energy sector in Bulgaria; outreach with members of the Parliamentary Energy Committee and Ministry of Economy and Energy; Participation in the Bilateral Chambers Joint Iniviative by providing expertise in the energy sector.

Healthcare Committee Chair: Dr. Krassimira Chemishanska, Amgen Deputy Co-Chairs: Dimitar Dimitrov, Sopharma Trading Kiril Nikolchev, AbbVie

Issues and Dealing with priority issues as healthcare system financing, access to innovations, clinical trials, Advocacy Activities: e-health, workforce development and retention, business ethics and anti-corruption practices, public procurement in the health sector; meetings with the Minister of Health, representa- tives of the Supervisory Board of the National Health Insurance Fund, and representatives of Stanford Health Care; cooperation and partnership with organizations/institutions as AmCham EU and Embassy of the United States of America in Sofia, Bulgaria; outreach with relevant institutions.

Human Resources Committee Co-Chairs: Dobromira Manasieva, VIVACOM Zlatina Kushkieva, AVON

Issues and Provision of a platform for exchange of human resources’ best practices and trends (discussion Advocacy Activities: on the latest amendments to the Labor Code (in force as of July 2015); Immigration rules for employment of foreign personnel – blue cards). Formulation of positions related to improve- ment and modernization of the labor legislation (incl. introduction of more flexible forms of employment; less restrictions on the use of fixed contracts; amendments of the requirements and regulations for overtime and temporary work; promotion of e-processes); Participation

10 Policy / Advocacy Report in various projects and initiatives such as Bilateral Chambers Joint Initiative, Education 2030 and Net4Work.

Public Affairs Committee Co-Chairs: David Butts, CMS Cameron McKenna Diana Pazaitova, Fama Consulting

Issues and Focusing on policy issues such as: strengthening the competitive business environment and Advocacy Activities: sustaining economic growth, maintaining a level playing field for competition; Promoting the principles of transparency, predictability and sustainability in economic policy and legislative processes; Developing opinions and position papers on various policy issues as amendment and supplementation to the Water act; Public Health Tax Bill, Excise Tax Bill, recommenda- tions for ensuring stability, transparency and predictability of the energy sector, Outreach with AmCham stakeholders including state institutions, business organizations, and NGOs.

Public Procurement and EU Funding Advisory Committee Co-Chairs: Radoslav Rizov, Microsoft Bulgaria Zlatina Ruseva-Savova, AmCham Individual member

Issues and Promoting transparency and equal access/participation in public procurement; Provision of Advocacy Activities: up-to-date information in the area of public procurement, EU funding opportunities and public-private partnerships (PPPs); Drafting comments and proposals related to legislative initiatives in the area of public procurement and PPPs (numerous legislative proposals made by the Committee on the draft Public Procurement Act have been taken into consideration and inserted as provisions into the draft law); active participation in the Bilateral Chambers Joint Initiative.

Quality Management Working Group Co-Chairs: Vyara Stankova, Intertek Boyan Guyzelev, Intertek

Activities: Sharing experience and good practices related to significant aspects of business management; Promotion of the importance of quality control and standards for better products and suc- cessful business; Topics covered by the Quality Management Working Group in 2015: Effective Asset Management for Optimizing Business Processes, Event Sustainability Management and Year of Changes in Quality & Environmental Management Systems (New versions ISO 9001:2015 and ISO 14001:2015 published by ISO).

Tax Committee Co-Chairs: Milen Raikov, EY Bulgaria Paul Tobin, PwC

Issues and Promoting a modern tax framework based on best international practices and enhancing Advocacy Activities: stability and predictability in the tax system to support the positive development and growth of the Bulgarian economy; Provision of up-to-date information to AmCham members on key developments in Bulgaria’s tax policy and legislation; Submitting proposlas for improve- ment of the Investment Promotion Act; Active participation in the Bilateral Chambers Joint Initiative. Topics covered during the meetings in 2015: The future of VAT through the eyes of OECD and Optional new relief under the US Double Taxation Treaty. AmCham Tax Committee had a Business Breakfast with PwC entitled “Global development on related parties’ transac- tions: Possible future developments in Bulgaria”.

Policy / Advocacy Report 11 Comparative Analysis Budget 2015-2016

Total Total Actual 2015 Total Budget 2015 premilinary Budget 2016

INCOME Mem. Fees Current members 532,000 548,000 578,500 Mem. Fees – New members 23,000 30,500 23,000 Events 380,000 391,000 330,000 AmCham Publications 100,000 79,000 100,000 Other 3,400 2,400 3,000 TOTAL BGN: 1,038,400 1,050,900 1,034,500

EXPENSES Events 300,000 334,000 280,000 AmCham Publications 100,000 76,500 100,000 Salaries and Bonuses 415,000 395,000 430,000 Other administrative costs 220,000 216,700 220,000 TOTAL BGN: 1,035,000 1,022,200 1,030,000

SURPLUS (DEFICIT) 3,400 28,700 4,500

Explanatory notes:: On the income side: Our goal is the retention of the current members and we may anticipate a moderate increase in membership. We also plan to organize new events that can bring additional income to the Chamber.

On the expense side: The activities we plan to conduct may lead us to a recruitment of additional staff primarily on part time and/or recruitment of interns. More activities outside Sofia and an enhanced regional cooperation with AmChams in the CEE region will also demand additional funding. We are also developing a new website.

12 Comparative Analysis Budget Аuditor’s Report 2014

Аuditor’s Report 2014 13 14 Аuditor’s Report 2014 Аuditor’s Report 2014 15 Acknowledgments

16 Acknowledgments American Chamber of Commerce in Bulgaria

Published by The American Chamber of Commerce in Bulgaria, ©2015

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International

Local Cooperation Local Publications Policy & Advocacy Policy

Design & Digital Print by Print.bg, phone: (+359 2) 400 5000 Business Meetings Membership Growth

December, 2015

www.amcham.bg