Traités de double imposition - Double Tax Treaties : Luxembourg

This Convention shall apply to persons who are residents of one or both of the Contracting States.

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

(a)

in Luxembourg :

(i)	the income tax on individuals (l'impôt sur le revenu des personnes physiques);
(ii)	the corporation tax (l'impôt sur le revenu????pl??????¼?????¼????A des collectivités);
(iii)	the tax on fees of directors of companies (l'impôt spécial sur les tantièmes);
(iv)	the capital tax (l'impôt sur la fortune);
(v)	the communal trade tax (l'impôt commercial communal) (hereinafter referred to as "Luxembourg tax");

(b)

in Bulgaria:

(i)	the general income tax;
(ii)	the profits tax;
(iii)	the tax on buildings

(hereinafter referred to as "Bulgarian tax").

4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of important changes which have been made in their respective taxation laws.

(a)

the term "Luxembourg" means the Grand Duchy of Luxembourg;

(b)

the term "Bulgaria" means the Republic of Bulgaria and, when used in a geographic sense, the territory over which Bulgaria exercises its sovereign rights, and the continental shelf and the exclusive economic zone over which Bulgaria may exercise its sovereign rights in accordance with international law;

(c)

the terms "a Contracting State" and "the other Contracting State" mean Luxembourg of Bulgaria, as the context requires;

(d)

the term "person" comprises an individual and:

(i)	in the case of Luxembourg, a company and any other body of persons;
(ii)	in the case of Bulgaria, any body corporate including a company and any other body of persons;

(e)

the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

(f)

the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

(g)

the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(h)

the term "competent authority" means:

(i)	in Luxembourg, the Minister of Finance or his authorized representative;
(ii)	in Bulgaria, the Minister of Finance or his authorized representative.

2. As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies.

(a)

in the case of Luxembourg, any person who, under the laws of Luxembourg, is liable to tax in Luxembourg, by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in Luxembourg in respect only of income from sources in Luxembourg or capital situated therein.

(b)

in the case of Bulgaria, any individual who, under the laws of Bulgaria, is liable to tax in Bulgaria for his worldwide income and who is not a resident of a third State, and any body corporate which has his place of management in Bulgaria or which is registered there. However, this term does not include any person who is liable to tax in Bulgaria in respect only of income from sources in Bulgaria or capital situated therein.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise of a Contracting State is wholly or partly carried on.

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(a)	a place of management;
(b)	a branch;
(c)	an office;
(d)	a factory;
(e)	a workshop; and
(f)	a mine, a quarry, an oil or gas well or any other place of extraction of natural resources.

3. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.

(a)	the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to an enterprise of a Contracting State;
(b)	the maintenance of a stock of goods or merchandise belonging to an enterprise of a Contracting State solely for the purpose of storage, display or delivery; the sale of goods displayed at an exhibition or trade fair shall not be deemed to constitute a permanent establishment;
(c)	the maintenance of a stock of goods or merchandise belonging to an enterprise solely for the purpose of processing by another enterprise;
(d)	the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
(e)	the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
(f)	a construction or installation or assembly project created on account of a contract for the delivery of industrial or technological equipment;
(g)	the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (f), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 6 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term "dividends" as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 10% of the gross amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.

(a)	in connection with the sale on credit of any industrial, commercial or scientific equipment, or
(b)	in connection with the sale on credit of any merchandise by one enterprise to another enterprise, or
(c)	on any loan of whatever kind, not represented by bearer securities, granted by a financial institution or a Contracting State.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

5. The provisions of paragraphs 1 to 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

1. Royalties arising in one of the Contracting States and paid to a resident of the other Contracting State shall be taxable only in that other State.

2. However, such royalties may be taxed in the Contracting State in which they arise and according to the law of that State, but the tax so charged shall not exceed 5% of the gross amount of the royalties.

3. For the purpose of this Article, the term "royalties" means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific works, any patents, certificates of invention, trade marks, designs or models, plans, secret formulas or processes, or for the use of a computer programme or as a consideration for the use of, or the right to use, industrial, commercial or scientific equipment or as a consideration for information concerning industrial, commercial or scientific experience.

4. The provisions of this Article shall also apply to payments received for the performance of technical services, where such payments are connected to the use or the granting of the right to use rights or goods referred to in paragraph 3.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that Contracting State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment, or a fixed base, in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment, or fixed base, is situated.

6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.

1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

(a)	the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and
(b)	the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
(c)	the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

Directors' fees, attendance fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised. The provisions of this paragraph shall not apply if it is established that neither the entertainer or the athlete nor persons related to them, participate directly or indirectly in the profits of the person referred to in that paragraph.

3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities of theatre artistes who are substantially supported, directly or indirectly, by public funds or from activities performed in the other State within the framework of an official programme of cultural exchange between both States.

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph 1, pensions and other payments paid out under the provisions of social security laws of a Contracting State shall be taxable only in that State.

(a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision, a local authority thereof or legal person organised under public law to an individual in respect of services rendered to that State or subdivision, authority or legal person shall be taxable only in that State.

(b)

However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:

(i)	is a national of that State; or
(ii)	did not become a resident of that State solely for the purpose of rendering the services.


2.	(a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision, local authority thereof or legal person organised under public law to an individual in respect of services rendered to that State or subdivision, authority or legal person shall be taxable only in that State.
(b)	However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.

4. Notwithstanding the provisions of paragraph 3, the provisions of paragraph 1 shall apply to remuneration paid to employees of the public national air transport enterprise of a Contracting State exercising activities of international traffic in the other Contracting State.

1. Payments which a student or business apprentice who is or was formerly a resident of one of the other Contracting States and who visits the other Contracting State solely for the purpose of his education or training, receives for the purpose of his maintenance, education or training are exempt of tax in that State.

2. An individual who is or was formerly a resident of one of the Contracting States and is temporarily present in the other Contracting State for the purposes of study, research or training or of acquiring technical, professional or business experience and who is exercising in the other Contracting State an employment remunerated for one or more periods not exceeding an aggregate of twelve months shall be exempt from tax in that other State on any remuneration of that employment provided that such employment is directly related to his studies, research, training or acquisition of experience and if the remuneration is necessary for his maintenance.

1. Items of income of a resident of a Contracting State, wherever arising, no dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.

2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

3. Capital represented by ships and aircraft operated in international traffic and by movable property pertaining to the operation of such ships and aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

1. In Luxembourg double taxation is avoided as follows:

(a)	Where a resident of a Contracting State derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Bulgaria, Luxembourg shall, subject to the provisions of sub-paragraphs (b) and (c), exempt such income or capital from tax but may, in calculating tax on the remaining income or capital of that person, apply the rate of tax which would have been applicable if the exempted income or capital had not been so exempted.
(b)	Where a resident of Luxembourg derives income which, in accordance with the provisions of Articles 10, 11 and 12, may be taxed in Bulgaria, Luxembourg shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Bulgaria. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Bulgaria.
(c)	Where a company which is a resident of Luxembourg derives dividend from Bulgaria, Luxembourg shall exempt such dividends from tax, provided that the company which is a resident from Luxembourg holds directly at least 25% of the capital of the company paying the dividends since the beginning of the accounting year. The above mentioned shares in the Bulgarian company are, under the same conditions, exempt from the Luxembourg capital tax.

2. In Bulgaria double taxation is avoided as follows :

(a)	Where a resident of Bulgaria derives income or owns capital, not mentioned in sub-paragraphs (b) and (c), which, in accordance with the provisions of this Convention, may be taxed in Luxembourg, Bulgaria shall exempt such income or capital from tax.
(b)	Where a resident of Bulgaria derives items of income which, in accordance with the provisions of Articles 10, 11 and 12 of this Convention, may be taxed in Luxembourg, Bulgaria shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Luxembourg. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Luxembourg.
(c)	Where in accordance with the provisions of this Convention income derived or capital owned by a resident of Bulgaria is exempt from tax in Bulgaria, Bulgaria may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

4. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 7 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.

5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first- mentioned State are or may be subjected.

6. No provision of this Article shall be interpreted as to prevent Bulgaria from imposing at the rate provided for by the Bulgarian laws the whole amount of profits of a Bulgarian permanent establishment of an individual or body of persons resident of Luxembourg, provided that the aforesaid rate does not exceed the rate generally applicable to profits of a permanent establishment of a third State.

7. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.

1. The competent authorities of the Contracting States shall exchange such information (obtainable under the fiscal laws of the two States in the normal course of the administration) as is necessary for carrying out regularly this Convention. Any information so exchanged shall be treated as secret and shall be disclosed only to persons involved in the assessment or collection of, the enforcement or prosecution in respect of the taxes covered by the Convention. Information shall not be exchanged disclosing any commercial, bank, industrial or professional secret or trade process.

2. In no case shall the provisions of this article be construed so as to impose on one of the Contracting States the obligation to carry out administrative measures at variance with its own laws and administrative practice or which would be contrary to its sovereignty, security, general interests or public policy (ordre public), or to supply information which is not obtainable under its own laws or under the laws of the State requesting it.

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

1. This Convention shall be ratified and the instruments of ratification shall be exchanged at Sofia soon as possible.

2. The Convention shall enter into force on the day following the day of exchange of instruments of ratification and its provisions shall have effect:

This Convention shall remain in force indefinitely; but either of the Contracting States may, on or before the thirtieth day of June in any calendar year from the third year following that in which the instruments of ratification have been exchanged, give to the other Contracting State, through diplomatic channels, written notice of termination. In the event of termination before the first of July of such a year, this Convention shall cease to have effect:

In witness whereof the plenipotentiaries of both States have signed this Convention.

Done at Luxembourg on 27 January 1992 in duplicate in the French and Bulgarian languages, both texts being equally authentic.

At the signing of the Convention between the Grand Duchy of Luxembourg and the Republic of Bulgaria for the avoidance of double taxation with respect to taxes on income and on capital on 27 January 1992 in Luxembourg,

Have agreed upon the following provisions, which shall for an integral part of the Agreement:

1. This Convention shall not be applicable to holding companies in the sense of the particular Luxembourg laws, currently governed by the law of 31 July 1929 and Grand Ducal Decree of 17 December 1938, nor to companies subject in Luxembourg to similar fiscal laws. It shall also not apply to income, other than salaries and directors' fees referred to in Articles 15 and 16, which a resident of Bulgaria derives from such companies, nor to shares or other rights in capital in such companies which that person owns.

2. The provisions of this Convention shall not affect the fiscal provisions of Agreements concluded between the two Contracting States in the field of international transport.

In respect of Bulgaria are also deemed to be enterprises individual and collective firms of individuals, as well as economic activities of these persons registered with the municipalities according to Bulgarian law.

The provisions of paragraph 4 of Article 12 shall not apply to remuneration paid for technical services carried out on the occasion of the supply of complete installations, or of technological, scientific, production or commercial equipment.

In witness whereof the Plenipotentiaries of both States has signed this Protocol.

Done at Luxembourg on 27 January 1992 in duplicate in the French and Bulgarian languages, both texts being equally authentic.