22.07.2014

The Minister of Finance Petar Chobanov and the Ambassador of the Kingdom of Norway H.E. Guro Katharina H. Vikør have signed a new Double Taxation Avoidance Agreement (DTAA).

The current Agreement is an overall system of allocation of taxation between Bulgaria and Norway and its conclusion will galvanise the investment climate between both countries. This in turn will contribute to employing real and tax-relief possibilities for resident companies in both countries to do business in the reciprocal state in various spheres and sectors. The effective implementation of the new Agreement will contribute to the further harmonious development of bilateral economic and investment cooperation between the two countries.

The effective Agreement between the Republic of Bulgaria and the Kingdom of Norway signed in 1988 was agreed in totally different economic relations and legal framework. The provisions of the new Agreement comply with the up-to-date OECD model of tax agreements followed by Bulgaria in its contracting practices, as well as with the contemporary tax legislation of both countries and with the new economic reality.

The new DTAA signed between Bulgaria and Norway will be an effective instrument for elimination of double taxation with respect to the residents of both countries and will at the same time secure the fulfilment of the obligations for payment of taxes due.

The new DTAA will become effective after it is ratified by the two countries.