Moldova has successfully completed negotiations with France on a draft new convention to avoid double taxation.

Moldova has successfully completed negotiations with France on a draft new convention to avoid double taxation.

According to the Ministry of Finance, in particular, representatives of the Ministry of Finance and the Ministry of Foreign Affairs and European Integration of Moldova have successfully completed negotiations with their French colleagues on the draft Intergovernmental Convention on the avoidance of double taxation and prevention of income tax evasion. As a result of the negotiations, the text of the draft document was finalized, thus ensuring a consensus on the tax regime applied in the light of the relevant convention. At the same time, during the negotiations, the procedure for avoiding double taxation was determined, as well as the exchange of information between competent authorities in accordance with the BEPS Minimum Standards. According to the head of the Moldovan delegation of negotiators, Secretary of State of the Ministry of Finance Dorel Noroc, the provisions of the convention are aimed at creating coordinated tax systems between the two countries, as well as eliminating tax discrimination in any form, which will provide favorable conditions for foreign economic activity and strengthening bilateral relations. For the convention to take effect, the internal procedures required for its signature and ratification must be followed. It should be noted that on February 26, 2020, the Moldovan government approved the start of negotiations with the French government on the draft Convention on the avoidance of double taxation and the prevention of income tax evasion. The Cabinet of Ministers of the Republic of Moldova granted the authority to negotiate this document to an official delegation, headed by the State Secretary of the Ministry of Finance, Dorel Noroc, who received the authority to initial the agreed text of the convention. The new intergovernmental convention is designed to promote the development of trade and economic relations between Moldova and France, as well as attract new foreign investments to the country. The document is aimed at creating tax systems that harmonize the efforts of the two states aimed at preventing double taxation, distributing taxation rights, as well as eliminating any forms of tax discrimination, which will provide favorable conditions for carrying out foreign economic activity and strengthening economic relations. It should be noted that Moldova and France on January 30, 2006 signed the Intergovernmental Convention on the avoidance of double taxation and the prevention of income tax evasion, which Moldova ratified in 2007, and France refused, arguing that the document did not meet current standards in the tax area. Following subsequent consultations, the parties agreed to sign a new Convention for the avoidance of double taxation and the prevention of income tax evasion. // 05.02.2021 - InfoMarket.

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