The United States and Bulgaria signed a new income tax treaty and protocol on 23 February 2007. It is the first income tax treaty between the two countries.
The withholding rates on dividends under the new treaty will be 5% on dividends paid to 10% corporate shareholders and 10% on all other dividends. The 10% rate also applies to dividends paid by US Regulated Investment Companies (RICs) and US Real Estate Investment Trusts (REITs) provided certain conditions …