05.12.2014

The Minister of Finance Vladislav Goranov and the US Ambassador to Bulgaria H.E. Marcie Ries have signed an Agreement between the Government of the Republic of Bulgaria and the Government of the United States of America on Improving Tax Legislation Internationally. With this Agreement Bulgaria becomes part of the international exchange of information under the Foreign Account Tax Compliance Act.

FATCA was passed by the US Congress in 2010. It allows the Internal Revenue Service (IRS) to fight cross border tax evasion from US citizens through off-shore accounts and financial assets abroad.

This Agreement will have an indisputable positive effect as it will contribute to enhancing the international banking and tax transparency, as well as to the effective fight against tax evasion. With signing this Agreement, the Bulgarian financial institutions will not be subject to a withholding tax in the USA.