Moldova ratified the protocol amending the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital signed with Luxembourg
The initiative to amend the Convention belongs to the Luxembourg authorities, and the purpose of the protocol is to incorporate the amendments provided for by the Organization for Economic Cooperation and Development Model Tax Convention of 2017. These changes follow the OECD's endorsement of an action plan to combat Base Erosion and Profit Shifting (BEPS). Among the 15 actions to be taken by member states to implement BEPS are minimum standards for dealing with emerging issues. One of the BEPS actions aims to prevent the abuse of double taxation treaties. Thus, the Convention that applies between Moldova and Luxembourg will be complemented by a protocol signed on June 25, 2024. The Convention will be adapted to the current economic realities. According to the Moldovan authorities, the practical application of the provisions of the signed protocol will increase Moldova's attractiveness for Luxembourg investors, as it will create a legal and tax framework that will facilitate the initiation and development of business in Moldova. The Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital was signed in 2007. Currently, Moldova has concluded similar agreements with 51 states. // 15.11.2024 - InfoMarket.
