DTC_BG_NL.pdf

The Government of the People's Republic of Bulgaria and the Government of the Kingdom of the Netherlands agreed to a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The convention applies to persons who are residents of one or both of the states and covers taxes on income imposed by the states or their political subdivisions or local authorities. The existing taxes to which the convention applies include income tax, wages tax, company tax, dividend tax in the Netherlands, and tax on total income, tax on income of single males and females, and tax on profits in Bulgaria. The convention also applies to any identical or substantially similar taxes imposed after its signature. The convention defines key terms such as "state," "person," "company," "enterprise," and "permanent establishment" and sets out rules for determining residency and permanent establishment.