New Agreement between Bulgaria and Romania for the avoidance of double taxation will stimulate bilateral business relations
Sofia. The Bulgarian government approved a draft of a new agreement between Bulgaria and Romania for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. The document will be signed in case of following ratification. That is what the government information service announced.
The existing Bulgarian – Romanian agreement was signed in 1994 in terms of radically different economy relations between the two countries and without adequate at that time legal regulation on taxes in the Bulgarian legislation.
The approved today draft project provides for a system for distribution of taxation between the two countries, which will contribute to the harmonious development of bilateral economic and investment cooperation.
The agreement will also contribute for realisation of real opportunities for companies – residents of the two countries to do business in the other country in various fields and industries.
The decisions adopted in the Agreement are consistent with the Bulgarian contractual practice which mainly follows the model of tax convention of the Organisation for Economic Cooperation and Development.
