The Double Taxation Relief and International Tax Enforcement (Bulgaria) Order 2015

Statutory Instruments

2015 No. 1890

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief and International Tax Enforcement (Bulgaria) Order 2015

Made

11th November 2015

At the Court at Buckingham Palace, the 11th day of November 2015

Present,

The Queen’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.

Accordingly, Her Majesty, in exercising the powers conferred upon Her by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) to (3) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Bulgaria) Order 2015.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Convention set out in the Schedule to this Order have been made with the Government of the Republic of Bulgaria;

(b) the arrangements have been made with a view to affording relief from double taxation in relation to capital gains tax, corporation tax and income tax and taxes of a similar character imposed by the laws of the Republic of Bulgaria and for the purposes of assisting international tax enforcement; and

(c) it is expedient that those arrangements should have effect.

Richard Tilbrook

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains a Convention (“the Arrangements”) between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Bulgaria dealing with the avoidance of double taxation and the prevention of fiscal evasion. This Order brings the Arrangements into effect.

The Arrangements aim to eliminate the double taxation of income and gains arising in one country and paid to residents of the other country. This is done by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. There are also specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the Arrangements.

The Arrangements will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures. They will take effect as follows:

(a) in respect of taxes withheld at source, to amounts paid or credited on or after 1st January next following the date of entry into force;

(b) in Bulgaria, in respect of other taxes for taxable years beginning on or after 1st January next following the date of entry into force;

(c) in the United Kingdom:

(i) subject to paragraph (a) above, in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date of entry into force; and

(ii) in respect of corporation tax, for any financial year beginning on or after 1st April next following the date of entry into force.

Until such time as the Arrangements enter into force, the Convention set out in the Double Taxation Relief (Taxes on Income) (Bulgaria) Order 1987 (S.I. 1987/2054), continues to have effect.

The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

A Tax Information and Impact Note has not been produced for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.

(1)

2010 c. 8.

(2)

2006 c. 25.