Bulgaria Bulgarian tax agreements and international agreements Many countries have entered into tax agreements with other countries (also known as double taxation agreements or DBAs) to avoid or mitigate double taxation. Such contracts may include a number of taxes, including income taxes, inheritance tax, VAT or other taxes.  In addition to bilateral treaties, multilateral treaties also exist. For example, European Union (EU) countries are parties to a multilateral agreement on VAT under the auspices of the EU, while a joint mutual assistance treaty between the Council of Europe and the Organisation for Economic Co-operation and Development (OECD) is open to all countries. Tax treaties tend to reduce taxes in one contracting country for residents of the other contracting country in order to reduce double taxation of the same income. Bilateral tax treaties are often based on conventions and guidelines from the Organisation for Economic Co-operation and Development (OECD), an intergovernmental agency representing 35 countries. Agreements can address many issues such as the taxation of different income categories (for example. B corporate profits, royalties, capital income, labour income, etc.), methods of eliminating double taxation (. B for example, the method of exemption, the method of credit, etc.) and provisions such as reciprocal exchange of information and tax collection assistance. The agreement is the standard for the effective exchange of information within the meaning of the OECD`s initiative on harmful tax practices. This agreement, published in April 2002, is not a binding instrument, but includes two models of bilateral agreements. A number of bilateral agreements were based on this agreement.
 NOTE: The exemption/reduction in Iceland under the current agreements can only be achieved if the Director of Internal Revenue requests an exemption/reduction on Form 5.42. Until there is an exemption allowed with the number one registered, you have to pay taxes in Iceland. The Organisation for Economic Co-operation and Development (OECD) is a group of 36 countries that wants to promote global trade and economic progress. The OECD tax treaty on income and capital is more favourable to capital-exporting countries than capital-importing countries. The two countries concerned will benefit from such an agreement if the trade and investment flows between the two countries are reasonably the same and the country of residence taxes all income exempt from the country of origin.