The new Convention on avoidance of double taxation between Moldova and France has taken effect and its provisions will be applied from January 1, 2025.
The State Tax Service (STS) announced this, recalling that the new intergovernmental Convention between Moldova and France on avoidance of double taxation and prevention of evasion of taxes on income was signed in Chisinau on June 15, 2022. The document entered into force after receiving the last notification on the completion of internal procedures necessary for its entry into force. And the provisions of the convention itself will be applied in practice from January 1, 2025. The STS said that the implementation of this convention represents a significant step in the consolidation of bilateral relations and will have beneficial effects in various fields of Moldovan-French cooperation, will serve as a basis for the efficient development of the financial and tax sector, for the creation of equal conditions for all economic agents that will carry out business activities in both states. The Convention applies to individuals and legal entities who are residents of one or both contracting states. The application of the Convention will contribute to the development of Moldovan-French economic relations by eliminating double taxation of individuals and legal entities, as well as will increase the level of attractiveness of Moldova for French investors by creating a legal and tax framework that will facilitate the launch and development of business in Moldova. As InfoMarket reported earlier, on January 30, 2006, Moldova and France signed in Paris the Intergovernmental Convention for the Avoidance of Double Taxation and the Prevention of Income Tax Evasion, which Moldova ratified in 2007, while France refused to do so on the grounds that the document does not meet the current standards in the tax field. After additional consultations, the parties agreed to sign the new Convention. According to the Finance Ministry, the mentioned Convention is aimed at developing economic relations between Moldova and France both in the field of eliminating double taxation of individuals and legal entities, as well as in attracting foreign investments. At the same time, the document is meant to create tax systems that would coordinate the actions of the contracting states aimed at avoiding double taxation, eliminating tax discrimination in any form and ensuring the exchange of information, which would create favorable conditions for foreign economic activity and strengthen bilateral relations. // 14.05.2024 - InfoMarket.
