19.09.2012

Deputy Prime Minister and Minister of Finance Simeon Djankov and H.E. Regina Escher, Ambassador of the Swiss Confederation to Bulgaria, signed new Convention for the Avoidance of Double Taxation (CADT) with Respect to Taxes on Income and Capital. During the talks it was emphasized that the Convention protected the interests of both states and contributed to bilateral cooperation.

The new CADT rectifies a substantial omission in the existing CADT where there has been no provision about exchange of information between the two countries. The inclusion of texts about banking secrecy would allow exchange of banking information for tax purposes and would ensure transparency and possibility to take decisive and effective measures against money laundering, tax fraud and tax avoidance.

The so far existing Convention for the Avoidance of Double Taxation between Republic of Bulgaria and the Swiss Confederation, signed in 1991, was negotiated in a completely different economic environment and legal regulation. The tax laws in force since 1 January 1998 and their later amendments regulated new conditions which hindered Bulgaria to exercise its tax powers in respect to certain income and taxable persons. The new texts are consistent with the OECD Model Tax Convention and with the relevant EU directives transposed by Bulgaria.

The existence of an up-to-date Convention for the Avoidance of Double Taxation between Republic of Bulgaria and the Swiss Confederation is very important also in terms of reciprocity and balance in the protection of our country\'s interest when receiving Swiss investments.

The new CADT will enter into force after its ratification by the National Assembly.