New Convention with the Kingdom of the Netherlands has been signed for elimination of double taxation with taxes on income and prevention of fiscal evasion and avoidance
The Minister of Finance Kiril Ananiev and the Ambassador of the Kingdom of the Netherlands to Bulgaria H.E. Bea ten Tusscher signed today in the Ministry of Finance a new Convention for the elimination of double taxation with respect to taxes on income and the prevention of fiscal evasion and avoidance in the two countries.
The current Convention dates back to 1990 and has been signed in the circumstances of different economic relations between the two countries and within different legal regulation in Bulgaria in the field of taxation. The new convention is necessary also because of the current changes in the international taxation, initiated by the G-20 countries and the Organisation for Economic Cooperation and Development to counteract the reduction of tax base and transfer of profits. The new guidelines in this field are present in the project Base Erosion and Profit Shifting – BEPS.
The taxation regulations, introduced in the Convention, are in conformity with the acting Bulgarian taxation legislation and the current principles and developments in international taxation, reflected in the OECD Model Tax Convention. Such types of conventions are an important element of the international contractual basis and are of common economic interest, as they stimulate the economic and investment activities between the countries.