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Uk Bulgaria Double Tax Agreement

The current double taxation agreement between Bulgaria and the United Kingdom covers several taxes. In the case of the United Kingdom, the following taxes are abolished: the new double taxation convention, signed by Bulgaria and the United Kingdom, will be applied in both countries as soon as they ratify it. Bulgaria Bulgarian and International tax treaties Under the new DTT, double taxation in Bulgaria is eliminated by deduction of an amount equal to the amount of income tax collected in the United Kingdom (tax credit method) and not by the exemption of income collected in Bulgaria (exempt mode). New provisions on dividends, interest and royalties are introduced, under which no DTT relief is available if the main objective or one of the main objectives is to use the DTT provisions. Bulgaria signed its first double taxation agreement with the United Kingdom in 1987. The Convention was established in 1988 in Bulgaria and gradually in the United Kingdom. According to the content of the documents, the agreement contains provisions to avoid double taxation on income and capital gains tax, in order to promote economic cooperation between Bulgaria and the United Kingdom. In order to achieve economic cooperation, the Convention includes both British and Bulgarian businesses and citizens. The double taxation convention was last amended in March 2015, but has not yet been implemented. Among the changes to the double taxation convention between Bulgaria and the United Kingdom is the introduction of Bulgarian corporation tax in the Convention. The new agreement also contains provisions for the exchange of tax information. New dividend tax rates have also been set: we must bear in mind that the declarations on the existence of the reasons for the application of the DTT currently in force with the United Kingdom, issued by the Bulgarian tax authorities, no longer apply to income from long-term agreements during the periods to which the new DTT applies.

When conducting transactions with the UK of Great Britain and Northern Ireland, we advise you to contact a representative of KPMG`s tax department in Bulgaria for a consultation on the processing of income and the application of the new DTT. Specific provisions apply to border workers in the following double taxation conventions: tax treaties and related documents between the UK and Bulgaria. The new DTT will introduce the taxation of profits made by a resident of a contracting state by transferring comparable shares and shares, more than 50% of its value coming directly or indirectly from real estate located in the other contracting state of the latter state (i.e..

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