Sofia, June 27th, 2007 (WAM) - The United Arab Emirates and Bulgaria today signed an agreement for avoidance of double taxation and restriction of income and capital tax evasion.
The agreement was signed here today by Dr Mohammed Khalfan bin Kharbash, Minister of state for Financial & Industrial Affairs and Plamen Oresharski, Bulgarian Finance Minister.
Dr Kharbash said that the UAE runs the second largest economy in the Arab world and is considered as one of the key players in the region, specially after formation of the GCC customs union.
"This agreement will help provide equal taxation treatment to investors in the UAE and Bulgaria. Moreover, it provides an environment that stimulates foreign direct investment, encourages business ventures, and enhances the cooperation across the economic growth levels within the two countries. Further, it contributes new common projects that benefit the national economic outcomes of the two countries.
The agreement sets the framework for cooperation in matters related to taxes for economic and investment activities in the two countries.
It will apply on personal and corporate income taxes in both countries or any other similar taxes levied by the two countries after the signing date.
The agreement also provides for income and profit tax exemption regulations granted to national air cargo companies. Emirates Airlines, Etihad Airways, Air Arabia, and any air transportation company will benefit from such exemptions.
The UAE is well known for signing double taxation avoidance agreements.
So far, the country has signed over 45 agreements with various countries from all around the world, plus bilateral agreements on mutual tax exemptions for national carriers with Switzerland, Netherlands, Sri Lanka and Singapore.
The country also signed agreements on exemption of national carriers from all types of taxes with the United States, Japan, the United Kingdom, Malta, South Africa, Mauritius and Bangladesh.
The agreement was signed here today by Dr Mohammed Khalfan bin Kharbash, Minister of state for Financial & Industrial Affairs and Plamen Oresharski, Bulgarian Finance Minister.
Dr Kharbash said that the UAE runs the second largest economy in the Arab world and is considered as one of the key players in the region, specially after formation of the GCC customs union.
"This agreement will help provide equal taxation treatment to investors in the UAE and Bulgaria. Moreover, it provides an environment that stimulates foreign direct investment, encourages business ventures, and enhances the cooperation across the economic growth levels within the two countries. Further, it contributes new common projects that benefit the national economic outcomes of the two countries.
The agreement sets the framework for cooperation in matters related to taxes for economic and investment activities in the two countries.
It will apply on personal and corporate income taxes in both countries or any other similar taxes levied by the two countries after the signing date.
The agreement also provides for income and profit tax exemption regulations granted to national air cargo companies. Emirates Airlines, Etihad Airways, Air Arabia, and any air transportation company will benefit from such exemptions.
The UAE is well known for signing double taxation avoidance agreements.
So far, the country has signed over 45 agreements with various countries from all around the world, plus bilateral agreements on mutual tax exemptions for national carriers with Switzerland, Netherlands, Sri Lanka and Singapore.
The country also signed agreements on exemption of national carriers from all types of taxes with the United States, Japan, the United Kingdom, Malta, South Africa, Mauritius and Bangladesh.
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