US-Bulgaria tax treaty will encourage investment
US investment in Bulgaria could be set to increase after an agreement was signed between the countries to avoid double taxation.
The bilateral treaty, signed on Friday, is designed to encourage investment in the emerging market and could help facilitate further growth in the Bulgarian economy.
US deputy treasury secretary Robert Kimmitt said at a signing ceremony: "This treaty is the first of its kind between the United States and Bulgaria.
"This is an important event for the development of our relations. Signing this agreement will bring serious growth of US investments in Bulgaria."
Bulgaria's minister of finance Plamen Oresharski added that the treaty would be beneficial to US businesses as well as Bulgarian financial environments, novinite.com reports.
The treaty will reduce income taxes on cross-border dividend, interest and royalty payments, and will eliminate withholding tax when cross-border payments are made to pension funds, a Dow Jones newswire reports.
More US investment would help Bulgaria's gross domestic product outstrip last year's inflation-adjusted growth of 5.5%.
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