The Revenue Agency of Bulgaria issued a clarification on 5 February 2016 regarding the application of the Bulgaria – United Kingdom Income Tax Treaty (2015). The main clarifications include the following:
- Several types of income that were exempt under the previous treaty of 1987 are subject to withholding tax;
- the interim regime will not apply to income accruing on or after January 1, 2016; and
- income tax payers whose income is more than of LEV 500,000 annually must submit new requests for application of the treaty based on article 137 of the Tax Procedure Code (TSSPC). Those whose income is less than that level need to submit evidence based on article 136 of the TSSPC.
