IV. Bulgaria

DTT Albania/Bulgaria

DTT Albania/Bulgaria vs OECD-MC
Income and Capital Tax Treaty (2008)
see page 214

DTT Austria/Bulgaria

DTT Austria/Bulgaria vs OECD-MC
Income and Capital Tax Treaty (2008)
see page 45

DTT Bulgaria/Croatia

DTT Bulgaria/Croatia vs OECD-MC
Income and Capital Tax Treaty (2008)

Entry into force

30 July 1998

Effective Date

1 January 1999

Art 4 Resident

Art 4 of this Convention does not contain any special provisions in contrast to the OECD-MC.

Art 5 Permanent establishment

Art 5 para 3 lit a of this Convention additionally mentions assembly and supervisory activities to constitute a permanent establishment.
According to Art 5 para 3 lit b of this Convention, in contrast to the OECD-MC, the term „permanent establishment“ likewise encompasses the use of an installation or drilling rig or ship to explore for or exploit natural resources if such use is for more than twelve months.
Apart from that, Art 5 of this Convention does not include any deviations from the OECD-MC.

Art 6 Income from immovable property

In contrast to the OECD-MC, Art 6 para 4 of this Convention stipulates that the provisions of para 1 and para 3 shall also apply to income from immovable property used for the performance of independent personal services. This means that income derived from such immovable property situated in the other Contracting State is taxable in the other Contracting State.

Art 7 Business profits

Art 7 of this Convention corresponds to Art 7 of the OECD-MC.

Art 8 International traffic

Art 8 para 1 of this Convention – compared to the OECD-MC – includes profits derived from the opera

tion of road transport vehicles in international traffic and boats engaged in inland waterways transport.
Art 8 of this Convention does not include provisions concerning the place of effective management aboard a ship or boat.

Art 10 Dividends

Art 10 para 2 of this Convention stipulates that dividends may be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the withholding tax shall not exceed 5 per cent of the gross amount of the dividends. This Convention – in contrast to the OECD-MC – does not foresee that dividends shall be taxed with different tax rates depending on the amount of shares in the capital of the company.

Art 11 Interest

According to Art 11 para 2 of this Convention interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but – in contrast to the OECD-MC – the withholding tax shall not exceed 5 per cent of the gross amount of the interest.
Furthermore, Art 11 para 5 of this Convention states that interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State.

Art 12 Royalties

Corresponding to Art 12 of the OECD-MC, Art 12 of this Convention does not foresee that royalties may also be taxed in the Contracting State in which they arise.

Art 13 Capital gains

Art 13 of this Convention does not contain any special provisions that gains from the alienation of shares of a company, the property of which consists directly or indirectly principally of immovable property situated in a Contracting State, may be taxed in that State.

Art 14 Independent personal services

This Convention still includes an Art 14 (which is deleted in the OECD-MC), stating that income derived from professional services or other similar services of an independent character shall be taxable only in the State of residence, except if the earner has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities

(and this only applies to the income that is attributable to the fixed base).

Art 15 Dependent personal services

In contrast to Art 15 para 3 of the OECD-MC, Art 15 para 3 of this Convention additionally includes remuneration derived from employment exercised aboard a road transport vehicle operated in international traffic.

Art 16 Directors' fees

Art 16 of this Convention corresponds to Art 16 of the OECD-MC, including special provisions concerning directors' fees.

Art 17 Artistes and sportsmen

Art 17 of this Convention does not contain any special provisions in contrast to the OECD-MC.

Art 20 Students

In accordance with the OECD-MC, this Convention does not contain any provisions concerning professors and researchers, but does contain special provisions concerning students.

Art 21 Other income

Art 21 of this Convention corresponds to Art 21 of the OECD-MC, stating that income not dealt with in the other articles of the Convention shall be taxable only in the State of residence.

Art 23 Avoidance of double taxation

According to Art 23 of this Convention, double taxation shall be avoided by the credit method.

Art 26 Exchange of information

Art 26 para 1 foresees that the competent authorities of the Contracting States shall exchange information concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to this Agreement.