site.btaCabinet Approves Draft Tax Treaty with Andorra

The Council of Ministers Wednesday approved a draft treaty with the Principality of Andorra for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes. The Finance Minister is to conduct the negotiations on the treaty and sign the document, which will be subject to ratification by the National Assembly, the Government Information Service reported.

Bulgaria and Andorra have never concluded a tax treaty; in the last years, they have cooperated in the field of taxation mainly through various forms of tax information exchange based on various international legal documents. In the last years, the Principality of Andorra has been very active in broadening its network of tax treaties, and has shown interest in concluding one with Bulgaria as well. 

Tax treaties with countries like Andorra provide better competitive position for Bulgarian traders, promote business and investment, and create opportunities for the development of new sectors.

The draft tax treaty with Andorra reflects the latest developments and standards in the international tax system, initiated by the G-20 countries and the Organisation for Economic Co-operation and Development and introduced with its Base Erosion and Profit Shifting (BEPS) project.

With this action, Bulgaria fulfils its obligation to terminate all bilateral investment agreements with EU Member States and the United Kingdom and avoids the launch of an infringement procedure by the European Commission, the press release reads.