The first round of negotiations between Moldova and Germany on a double taxation avoidance agreement has been finalized in Chisinau.
The Finance Ministry said that this stage marked the beginning of a complex strategic process, in which the delegations of both sides cooperated to identify solutions that would strengthen common interests and contribute to the removal of economic and financial barriers between the two states. During the negotiations, the parties stipulated the need to conclude an additional protocol to the draft agreement, which would clarify the application of certain provisions of the document. In addition, the contracting parties have finally agreed on the taxes to which the agreement will be applied, general definitions, the procedure for taxation of business profits, as well as the procedure for eliminating double taxation. As emphasized by the Ministry of Finance, due to the complexity of the tax system of both states in the first round of negotiations, the parties did not agree on: the conditions for setting up a permanent establishment; taxation of profits from international transportation; establishment of income tax rates on dividends, interest and royalties; exchange of information between the competent authorities. According to the provisions of the law, the relevant topics are to be discussed during the second round of negotiations. The talks were held in Chisinau from February 19 to 23. //27.02.2024 - InfoMarket.
