According to information published on its website, the Moldovan government approved the amending protocol to the Luxembourg-Moldova Income and Capital Tax Treaty (2007) on 2 October 2024.
The protocol was signed 25 June 2024 in Luxembourg. It is expected to promote investment and strengthen bilateral cooperation between the two countries.
These changes come in the wake of the OECD’s endorsement of the BEPS (Base Erosion and Profit Shifting) Action Plan. The 15 actions outlined for member states to implement BEPS include minimum standards targeting harmful tax practices, treaty abuse, country-by-country reporting, and dispute resolution mechanisms. These measures address issues that arise when obligations are unmet or when actions by one country create negative spillover effects for others. A key section of BEPS focuses on preventing the abuse of double taxation agreements.
This is the first amendment to the treaty, originally signed on 11 July 2007, in Chisinau, and in effect since 2010. The protocol must be ratified by both contracting parties before it can enter into force.
