Bulgaria’s Cabinet approved, at a regular meeting on 25 November, a treaty with the Netherlands on the avoidance of double taxation, according to a statement by the government information service.
The treaty, signed on 14 September 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.
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).