DTT Austria/Bulgaria | DTT Austria/Bulgaria vs OECD-MC |
Entry into force | 3 February 2011 |
Effective Date | 1 January 2011 (other taxes) / 1 January 2012 (withholding taxes) |
Art 4 Resident | Art 4 of this Convention does – in addition – contain the provision, that if a person other than an individual is a resident in both Contracting States, then the competent authorities of the both states shall settle the question of residence by mutual agreement. |
Art 5 Permanent establishment | In contrast to the OECD-MC, Art 5 para 3 of this Convention foresees that a building site, a construction, assembly or installation project constitutes a permanent establishment if it lasts more than six months. |
Art 6 Income from immovable property | Art 6 of this Convention corresponds to the OECD-MC. |
Art 7 Business profits | Art 7 of this Convention corresponds to Art 7 of the OECD-MC. |
Art 8 International traffic | Art 8 of this Convention – in contrast to Art 8 of the OECD-MC – does not include a provision concerning the place of effective management aboard a ship or boat. |
Art 10 Dividends | In contrast to the OECD-MC, Art 10 para 2 of this Convention states that dividends may not be taxed in the Contracting State of which the legal entity paying the dividends is a resident if the beneficial owner is a company (other than a partnership) and in all other cases the withholding tax shall not exceed 5 per cent of the gross amount of the dividends. |
Art 11 Interest | Art 11 para 2 of the Convention states that interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but the withholding tax shall not exceed 5 per cent of the gross amount of the interest. |
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in a State shall be taxable only in the Contracting State of which the recipient is a resident, if such recipient is the beneficial owner of the interest and such interest is paid to the Government of one of the Contracting States, or on a loan of whatever kind granted, insured or guaranteed by the Oesterreichische Kontrollbank AG or any comparable Bulgarian institution for purposes of promoting exports, or in connection with the sale on credit of any industrial, commercial or scientific equipment or on any loan of whatever kind granted by a bank. | |
Art 12 Royalties | Art 12 para 2 of this Convention, in contrast to the OECD-MC, contains a special provision stipulating that royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but the withholding tax shall not exceed 5 per cent of the gross amount of the royalties. |
Art 13 Capital gains | Art 13 of this Convention contains a special provision concerning gains from the alienation of shares of a company, other than shares quoted on an approved Stock Exchange, or shares in a company of which the alienator holds at least 20 per cent of the capital. |
Art 14 Income from employment | This Convention does not include an Art 14 (which is deleted in the OECD-MC) concerning income derived in respect of professional activities or other activities of an independent character. Art 14 of this Convention corresponds to Art 15 of the OECD-MC including special provisions concerning income from employment. |
Art 15 Directors' fees | Art 15 of this Convention – in accordance with Art 16 of the OECD-MC – includes special provisions concerning directors' fees. |
Art 16 Artistes and sportsmen | Art 16 para 3 of this Convention, in contrast to the OECD-MC, provides that income mentioned in this article shall be exempt from tax in the Contracting State in which the activity of the artist or sportsman is exercised provided that the visit is wholly or mainly supported out of public funds of one state or a political subdivision or a local authority thereof or by an institution which is recognised as a non-profit institution. |
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Art 20 Teachers and researchers | In addition to the OECD-MC, Art 20 of this Convention contains special provisions concerning individuals who are teaching or carrying out research. |
Art 21 Other income | Following Art 21 of the OECD-MC, Art 21 of this Convention states that income not dealt with in the other articles of the Convention shall be taxable only in the state of residence. |
Art 23 Exemption method | According to Art 23 of this Convention, double taxation shall be avoided in both states by the exemption method with progression. |
Art 26 Exchange of information | Art 26 para 1 of this Convention stipulates that the competent authorities of the Contracting States shall exchange information concerning taxes of every kind and descriptions imposed on behalf of the Contracting States, or of their political subdivisions or a local authorities, insofar as the taxation thereunder is not contrary to the provisions of the Agreement. |
