Bulgarian Deputy Prime Minister and Minister of Finance, Lyudmila Petkova, signed an agreement in Brussels with Malta to avoid double taxation between the two countries on 10 December 2024.
The Agreement was signed on the Maltese side by Clyde Caruana, the Minister of Finance and Employment.
Upon its entry into force, the new agreement will replace the existing treaty signed in 1986.
The negotiation of a new agreement was prompted by changes in the socio-economic conditions and the development of Bulgaria’s tax legislation over the past decades. The document also reflects the changes in the international tax system initiated by the G-20 countries and the Organisation for Economic Co-operation and Development (OECD), as outlined in the BEPS Project (Base Erosion and Profit Shifting Action Plan).
The new agreement ensures a balanced distribution of tax jurisdiction between the two countries and introduces clear and effective tax rules to eliminate double taxation, along with special provisions to prevent tax avoidance and evasion.
