{"id":357,"date":"2023-08-10T10:33:53","date_gmt":"2023-08-10T10:33:53","guid":{"rendered":"https:\/\/romanian-accountants.com\/?p=357"},"modified":"2023-08-10T10:33:54","modified_gmt":"2023-08-10T10:33:54","slug":"double-tax-treaty-romania-bulgaria","status":"publish","type":"post","link":"https:\/\/romanian-accountants.com\/double-tax-treaty-romania-bulgaria\/","title":{"rendered":"Double Tax Treaty Romania &#8211; Bulgaria"},"content":{"rendered":"\n<p>Double taxation is when a person, natural or legal, pays income tax twice on the same source of income. This normally happens for persons who are working abroad or are engaged in international trade and is very burdensome for the tax payer. That is why in April 24, 2015, the&nbsp;<a href=\"https:\/\/romanian-accountants.com\/double-taxation-avoidance-treaties-signed-with-romania\"><strong>double tax treaty between Romania and Bulgaria<\/strong><\/a>&nbsp;was signed. The treaty is called The Convention Between Romania and Bulgaria to Avoid Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income. The treaty applies to all residents of both countries. Our&nbsp;<a href=\"https:\/\/romanian-accountants.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Romanian accountants<\/strong><\/a>&nbsp;can advise you on the provisions of the double tax treaty.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/romanian-accountants.com\/double-tax-treaty-romania-bulgaria\/#taxes-covered-under-the-double-tax-treaty-between-romania-and-bulgaria\" title=\"Taxes covered under the double tax treaty between Romania and Bulgaria\">Taxes covered under the double tax treaty between Romania and Bulgaria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/romanian-accountants.com\/double-tax-treaty-romania-bulgaria\/#method-of-eliminating-double-taxation-under-the-romania-%e2%80%93-bulgaria-treaty\" title=\"Method of eliminating double taxation under the Romania &#8211; Bulgaria treaty\">Method of eliminating double taxation under the Romania &#8211; Bulgaria treaty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/romanian-accountants.com\/double-tax-treaty-romania-bulgaria\/#key-provisions-in-the-double-tax-treaty-between-romania-and-bulgaria\" title=\"Key provisions in the double tax treaty between Romania and Bulgaria\">Key provisions in the double tax treaty between Romania and Bulgaria<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"taxes-covered-under-the-double-tax-treaty-between-romania-and-bulgaria\"><\/span><strong>Taxes covered under the double tax treaty between Romania and Bulgaria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>Romania &#8211; Bulgaria double tax treaty<\/strong>&nbsp;lists down the types of income tax that are covered by the agreement. Our experts in&nbsp;<strong>accounting in Romania<\/strong>&nbsp;have listed them down as follows:<\/p>\n\n\n\n<p>1. Romanian income tax;<\/p>\n\n\n\n<p>2. profit tax in Romania;<\/p>\n\n\n\n<p>3. Bulgarian personal income tax;<\/p>\n\n\n\n<p>4. &nbsp;corporate income tax in Bulgaria.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"method-of-eliminating-double-taxation-under-the-romania-%e2%80%93-bulgaria-treaty\"><\/span><strong>Method of eliminating double taxation under the Romania &#8211; Bulgaria treaty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main purpose of executing the treaty is to eliminate&nbsp;<strong>double taxation between Romania and Bulgaria<\/strong>. The two methods for eliminating double taxation are tax deductions and tax exemptions. When income is earned in one state and is also taxable in another, the amount already paid as tax can be used as deduction. This method is tax deduction. On the other hand, tax exemption is the fact of being legally excused from the payment of tax instead of being obliged to pay it. Our&nbsp;<strong>Bucharest accounting firm<\/strong>&nbsp;can assist you in availing tax deduction or tax exemption.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"key-provisions-in-the-double-tax-treaty-between-romania-and-bulgaria\"><\/span><strong>Key provisions in the double tax treaty between Romania and Bulgaria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>Romania &#8211; Bulgaria double tax treaty<\/strong>&nbsp;contains numerous provisions relating to the tax relationship between the two countries. Experts in&nbsp;<a href=\"https:\/\/romanian-accountants.com\/performing-an-audit-in-romania\"><strong>audit in Romania<\/strong><\/a>&nbsp;have listed down the key provisions of the treaty:<\/p>\n\n\n\n<p>1. Non-discrimination<\/p>\n\n\n\n<p>This provision refers to the equal treatment of the nationals of Romania and Bulgaria. This means that taxes imposed and the requirements needed in relation to such taxes shall not be more burdensome on the nationals of one state as compared to the other.&nbsp;<\/p>\n\n\n\n<p>2. Mutual agreement procedure<\/p>\n\n\n\n<p>This refers to the procedures laid down by both states with regard to any issues arising from the imposition of taxes by Romania and Bulgaria. Both states must respect the remedies provided for by their respective laws and all issues must be raised within three years from its occurrence.<\/p>\n\n\n\n<p>3. Assistance in tax collection<\/p>\n\n\n\n<p>Romania and Bulgaria are obligated to assist each other in collecting&nbsp;<a href=\"https:\/\/romanian-accountants.com\/tax-code-in-romania\"><strong>tax liabilities<\/strong><\/a>&nbsp;under their respective jurisdictions. The competent authorities of each state must make available any resources that will assist in successfully collecting any tax claim raised by either state.&nbsp;<\/p>\n\n\n\n<p>There are other significant provisions under the&nbsp;<strong>double tax treaty of Romania and Bulgaria<\/strong>. Our&nbsp;<a href=\"https:\/\/romanian-accountants.com\/contact\"><strong>specialists&nbsp;<\/strong><\/a>in&nbsp;<strong>accountancy in Bucharest<\/strong>&nbsp;can provide you with more information about the treaty.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Double taxation is when a person, natural or legal, pays income tax twice on the same source of income. This normally happens for persons who are working abroad or are engaged in international trade and is very burdensome for the tax payer. That is why in April 24, 2015, the&nbsp;double tax treaty between Romania and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":82,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[271,31,293,273,297,299,295,26],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Double Tax Treaty Romania - Bulgaria<\/title>\n<meta name=\"description\" content=\"Individuals can avail the benefits provided under the double tax treaty of Romania and Bulgaria. 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