DTC_BG_FI.pdf

The People's Republic of Bulgaria and the Republic of Finland have agreed to a Convention for the avoidance of double taxation with respect to taxes on income. The Convention applies to persons who are residents of one or both of the Contracting States, including individuals and legal persons. It covers existing taxes such as the tax on total income in Bulgaria and the state income tax in Finland, as well as any identical or substantially similar taxes imposed after the date of signature. The Convention defines key terms, including "place of business" and "international traffic," and sets out rules for the taxation of business profits, including the attribution of profits to a place of business and the allowance of deductions for expenses. A place of business is defined as a fixed place through which the business of a resident of a Contracting State is carried on, and includes branches, factories, and offices, but excludes certain activities such as storage and delivery. The Convention also provides for the resolution of disputes and the exchange of information between the competent authorities of the Contracting States.