INTERNATIONAL TAX PLAZA - Bulgaria and Guernsey have signed a TIEA

(June 16, 2015)

Based on the overview of Tax Information Exchange Agreements that the Government of the States of Guernsey has published on its website, the Agreement between the States of Guernsey and the Government of the Republic of Bulgaria for the Exchange of Information on Tax Matters (TIEA) was signed on May 20, 2015 and June 11, 2015.

According to the States of Guernsey the TIEA has been signed but the agreement has not entered into force yet. The TIEA will enter into force after both countries have finalized their respective ratification procedures.

Based on paragraph 1 of Article 3 of the TIEA the taxes which are the subject of this Agreement are:

a) in Bulgaria:

(i) the corporate income tax;

(ii) the personal income tax;

(iii) the patent tax;

(iv) the value added tax.

b) in Guernsey:

(i) income tax;

(ii) dwellings profits tax.

Paragraph 2 of Article 3 of the TIEA determines that the Agreement shall also apply to any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The taxes covered by this Agreement, may be expanded or modified by mutual agreement of the Contracting Parties in the form of an exchange of letters.

Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request, Article 6 contains regulations regarding the Possibility of Conducting Examinations Abroad, Article 7 contains regulations regarding the Possibility of Declining a Request, Article 11 contains regulations regarding a Mutual Agreement Procedure and Article 12 contains regulations regarding a Mutual Assistance Procedure.

For further information click here to be forwarded to the text of the Bulgarian – Guernsey TIEA as published on the website of the Government of the States of Guernsey, which will open in a new window.

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