AADT

The agreements for the avoidance of double taxation (AADT) are bilateral international contracts. In order to come into force, after being concluded, they must be duly ratified in every country-cosignatory. AADT provides an alleviated mode of the taxation of the incomes of natural and legal persons and of non-personal entities/unincorporated business entities, whenever these incomes must be taxed in two or more countries.

When does double taxation exist? – When similar in kind taxes must be levied on the incomes of a person in two or more countries. It has an undesirable effect, hindering an economic exchange and countries takes measures for its overcoming through the signing of AADT.

Every AADT stipulates in which cases it is applied and with regard to whom, as well as we with respect to which incomes. AADT is not enforced automatically. Every country has its own internal procedure for its application. For this purpose, an interested person must submit a request to competent state institutions, that stipulates: which agreement will be applied, the revenues for which application is requested and so on. The competent institution in Bulgaria is the National Revenue Agency.

Vesta Consult renders complete assistance at the preparation and submittal of the documents necessary for the application of AADT, as we give detailed instructions to our clients as to when they can avail themselves of the more favorable provisions of such agreements.

The names of the countries with which Bulgaria has concluded Agreements for the Avoidance of Double Taxation follow: Austria, Azerbaijan, Albania, Algeria, Armenia, Bahrain, Belarus, Belgium, Great Britain, Vietnam, Germany, Georgia, Greece, Denmark, Egypt, Estonia, Zimbabwe, Israel, India, Indonesia, Iran, Ireland, Spain, Italy, Jordan, Kazakhstan, Canada, Qatar, Cyprus, China, Democratic People’s Republic of Korea, Kuwait, Latvia, the Lebanon, Lithuania, Luxembourg, Macedonia, Malta, Morocco, Moldova, Mongolia, Norway, UAE, Poland, Portugal, Romania, the Russian Federation, USA, Singapore, Syria, the Slovak Republic, Slovenia, Thailand, Turkey, Uzbekistan, Ukraine, Hungary, Finland, France, the Netherlands, Republic of Croatia, the Czech Republic, Switzerland, Sweden, Yugoslavia, Republic of South Africa, South Korea and Japan.