BulgariaThe Tax Convention and international agreements of Iceland have concluded several tax agreements with other countries. Natural persons permanently resident and subject to full and unlimited tax in one of the Contracting States may be entitled, in accordance with the provisions of the respective conventions, to an exemption/reduction from the taxation of income and capital, without which income would otherwise be subject to double taxation. Each agreement is different and it is therefore necessary to review the agreement in question in order to determine where the tax debt of the person concerned really lies and what taxes the agreement provides. The provisions of tax agreements with other countries may result in a restriction of Icelandic tax legislation. The agreement is the standard for an effective exchange of information within the meaning of the OECD Initiative on Harmful Tax Practices. This agreement, published in April 2002, is not a binding instrument, but includes two model bilateral agreements. This agreement was based on a number of bilateral agreements. [36] A bilateral tax treaty can improve relations between two countries, promote foreign investment and trade, and reduce tax evasion. The purpose of this Agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Exchange of Information. The agreement was born out of the OECD`s work to combat harmful tax practices. The lack of an effective exchange of information is one of the key criteria for determining harmful tax practices.

The mandate of the working group was to develop a legal instrument for an effective exchange of information. Many countries have tax treaties with other countries (also known as double taxation treaties or DTAs) to avoid or mitigate double taxation. These contracts can cover a number of taxes, including income taxes, inheritance tax, VAT or other taxes. [1] In addition to bilateral agreements, there are also multilateral treaties. For example, European Union (EU) countries are parties to a multilateral VAT agreement under the auspices of the EU, while a joint mutual assistance treaty of the Council of Europe and the Organisation for Economic Co-operation and Development (OECD) is open to all countries. Tax treaties tend to reduce the taxes of one contracting country for residents of the other contracting country in order to reduce the double taxation of the same income. A tax treaty is a bilateral (two-party) treaty concluded by two countries to resolve the problems related to the double taxation of the passive and active income of each of their respective citizens. Income tax treaties generally determine the amount of taxes a country can apply to a taxable person`s income, capital, estate or wealth. An income tax treaty is also called a double taxation convention (DBA). A bilateral tax treaty, a kind of tax treaty signed by two nations, is an agreement between legal services that alleviates the problem of double taxation that can arise when tax legislation considers that an individual or company is resident in more than one country. Bilateral tax treaties are often based on treaties and guidelines established by the Organisation for Economic Co-operation and Development (OECD), an intergovernmental agency representing 35 countries.

Conventions can deal with many issues, such as. B taxation of different categories of income (i.e. company profits, royalties, capital gains, labour income, etc.), methods of eliminating double taxation (e.g. .