An announcement was made on November 22, 2017, that the Government approved a draft income tax agreement on between the Republic of Bulgaria and the Kingdom of Saudi Arabia for the avoidance of double taxation and the prevention of fiscal evasion. The document will be signed subject to subsequent ratification.
The permits adopted in the draft Agreement are in line with the current Bulgarian tax legislation and the current principles of international taxation reflected in the current model tax convention of the Organization for Economic Cooperation and Development.
At present, economic relations between the two countries are underdeveloped, with trade too limited and not in line with their real opportunities and interests. The conclusion of a tax treaty will create a legal basis for activating and stimulating the investment climate, will contribute to the realization of real and tax-friendly opportunities for companies to carry out economic activities in the other country in different economic sectors.
