Bulgarian government nod for draft double tax agreement with India

Written by on March 20, 2014 in Business - Comments Off on Bulgarian government nod for draft double tax agreement with India

Bulgaria’s cabinet, at a scheduled meeting on March 19, approved a draft agreement between Bulgaria and India on the avoidance of double taxation and the prevention of income tax evasion. The cabinet authorised the finance minister to conduct negotiations and to sign the document, subject to ratification .

A media statement said that a similar agreement between Bulgaria and India in force since 1994 was signed under different economic conditions, and different legal regulations in the field of taxation.

This meant that it was no longer an effective instrument for solving problems of international double taxation and did not create sufficient incentives for bilateral economic and investment co-operation between the two countries.

The draft of the new document is a comprehensive system for the distribution of taxation between the two countries, which will contribute to the harmonious development of bilateral cooperation, according to the government media office.

“Effective implementation will stimulate and deepen the partnership between Bulgaria and India,” the statement said

The project complied with the applicable Bulgarian tax legislation and modern principles of international taxation reflected in the model tax convention of the OECD, according to the statement.

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