Bulgaria: Income tax treaty with the Netherlands

Income tax treaty with the Netherlands generally will apply beginning 1 January 2022

Income tax treaty with the Netherlands generally will apply beginning 1 January 2022

A new income tax treaty between Bulgaria and the Netherlands entered into force on 31 July 2021 and generally will apply beginning 1 January 2022, with respect to taxes withheld at source and other taxes.

The Bulgaria-Netherlands income tax treaty includes measures specifically regarding withholding tax on dividends (in general, a 15% rate), on interest (a 5% rate), and royalties (a 5% rate).

The treaty also includes provisions addressing the tax treatment of:

  • Permanent establishments
  • Business profits
  • Gains from transfer of shares and interests

Read a July 2021 report [PDF 115 KB] prepared by the KPMG member firm in Bulgaria

 

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