Bulgaria DTT Question

[Andrew Simmons]

Hi,

I make my money as an affiliate and online website manager and for tax purposes am considering incorporating in Bulgaria due to their 10% corporate tax, 5% dividend tax, and various double tax treaties.

I have a question about double tax treaties. If I'm living in a Scandinavian country (say Norway), but have a company and personal account in Bulgaria will I need to pay any additional taxes on the money I spend in Norway, or will it depend on the treaty? Or does the treaty mean that no further taxation can be applied to income?

I also believe it necessary to pay social security in the country I am residing in, unless I pay it in Bulgaria and receive a certificate to say that I am covered?

Any advice appreciated.

Thanks,

 

[DeMajor]

You will still need to pay personal income tax from the money you received from the Bulgarian company! The threatie only apply for corporate tax, which mean you don't have to pay tax again in your home country from the money you earn in the company!

 

[Andrew Simmons]

Thanks for getting back. Okay, so if I'm self employed it's not really worth it since that'll just add an additional 10% tax unless I want to keep my money in the company. I was hoping the treaty would include dividends and personal income - i.e. if I were to pay myself a salary/dividends in Bulgaria with a personal account there.