Bulgaria’s Cabinet has agreed to a proposal to amend the double taxation agreement (DTA) with Romania, to apply in place of the current DTA that was signed in 1994. The Cabinet has authorized the Finance Minister to negotiate the new DTA. This matter was initially discussed at a joint meeting of the Bulgarian and Romanian governments in November 2013.
The new DTA will conform broadly to the provisions of the OECD Model, allocating taxing powers between the two countries in relation to various types of income and providing for the elimination of double taxation. The agreement is intended to improve relations between the countries and boost economic co-operation.
