Pakistan and Bulgaria on Tuesday May 21, 2019 signed the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income. The agreement was signed at the sideline of the Second Session of Pakistan–Bulgaria Inter-Governmental Commission (IGC) which concluded on Tuesday.
The Convention was signed by Dr. Muhammad Ashfaq Ahmed, Director General International Taxes, FBR, and Ms. Liliya Ivanova, Deputy Minister of Economy, Republic of Bulgaria on behalf of their respective governments.
The Convention will not only provide safeguards against double taxation on the income of the residents of both the contracting states but will also promote economic cooperation, bilateral investment and will further enhance the existing bilateral economic relations between the two states. The Convention will provide adequate certainty in respect of taxation rules applicable to cross-border business transactions, dividends, interests, royalties and fees for technical services etc.
The Convention shall enter into force after the completion of the procedures required under the domestic laws of both the contracting states and shall enter into force on the date of the later of these notifications.