Bulgaria’s Cabinet approved, at a regular meeting on November 25, a treaty with the Netherlands on the avoidance of double taxation, according to a statement by the government information service.
The treaty, signed on September 14 2020, covers the avoidance of double taxation in income taxes and the prevention of tax evasion and circumvention.
It will be put to Bulgaria’s National Assembly for ratification.
The document creates tax-friendly opportunities for residents of each of the two countries to carry out business activities in the other country in various fields and industries, the Bulgarian government statement said.
“This will contribute to the deepening of bilateral economic and investment co-operation between the two countries,” the statement said.
The tax rules adopted in the signed agreement are in accordance with current Bulgarian tax legislation and modern principles and developments in international taxation, reflected in the current Model Agreement of the Organization for Economic Cooperation and Development (OECD).
The new guidelines in this area are also set out in the Base Erosion and Profit Shifting (BEPS) Project, which offers countries solutions to overcome differences in existing international tax rules that allow companies to minimise their tax liabilities by using aggressive tax planning schemes, artificially transferring their corporate profits to jurisdictions with low or zero tax rates, the statement said.
The measures under the BEPS Project open the way for greater tax predictability and legal certainty by creating conditions for more effective settlement of disputes between taxpayers and administrations in the application of international tax rules and requirements, it said.
(Photo: Peter van Kranen)
For as little as three euro a month or the equivalent in other currencies, you can support The Sofia Globe via patreon.com and get access to exclusive subscriber-only content: