site.btaBulgaria, Malta Sign New Double Taxation Agreement

Bulgaria’s caretaker Deputy Prime Minister and Finance Minister Lyudmila Petkova signed a Double Taxation Agreement between Bulgaria and Malta in Brussels on Tuesday, the Finance Ministry’s press service said. The agreement was signed on behalf of Malta by the country's Finance and Employment Minister, Clyde Caruana.

Once it comes into force, the new treaty will replace the current Double Taxation Treaty, which was signed in 1986. The need for a new treaty arose due to changes in socio-economic conditions and developments in Bulgaria's tax legislation over recent decades. The document also reflects changes in the international tax system initiated by the G20 countries and the Organization for Economic Co-operation and Development and outlined in the Base Erosion and Profit Shifting Project.

The new treaty ensures a balanced distribution of the taxing powers between the two countries and introduces clear and effective tax rules to eliminate double taxation. It also includes special provisions to prevent tax avoidance and evasion, the press release said.