The caretaker government of Bulgaria approved an amendment to the draft income tax treaty with Malta, authorising the Minister of Finance to sign the agreement, on Wednesday, 15 May, 2024.
The initial draft, approved on 8 July, 2020, and underwent negotiations in October, 2022, and November, 2023, and reached a common draft agreement.
The draft makes significant amendments under Article 11(2) of the international treaties of the Republic of Bulgaria Act. It introduces mechanisms for a suitable legal structure to combat tax avoidance, and restricts the misuse of its provisions to national tax laws of both countries.
The treaty must be signed and ratified before it can come into effect. Once it is operational and in effect, it will replace the 1986 tax treaty between the two nations.
