26.03.2015

Minister of Finance Vladislav Goranov and Chargé d'affaires Sarah Riley signed a new Convention between the Republic of Bulgaria and the United Kingdom of Great Britain and Northern Ireland on the avoidance of double taxation and tax evasion of taxes on income and capital gains.

The new Convention between Bulgaria and the United Kingdom is a comprehensive system for taxation distribution between the two countries, which will contribute to the harmonious development of the bilateral economic and investment cooperation. It will promote the investment climate between the two countries and will help implementing real and relieved in terms of taxation possibilities for the resident companies in both countries to perform economic activity in the other, non-residence country in various sectors and branches.

The now effective Convention between Bulgaria and the United Kingdom of Great Britain and Northern Ireland, which was signed in 1987, was negotiated on the background of radically different economic relations between the two countries and in the absence of an adequate for the specific moment legal regulation in the Bulgarian tax legislation. The provisions of the new Convention are compliant with the Bulgarian contract practices which largely follow the Model Tax Convention of the Organization for Economic Cooperation and Development.

The new Convention on the avoidance of double taxation will enter into force after its ratification by both countries.