The Moldovan parliament approved a draft law to ratify the amending protocol to the Luxembourg-Moldova Income and Capital Tax Treaty (2007) on 15 November 2024.
Earlier, Moldovan government approved the amending protocol 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.
It will take effect upon the exchange of ratification instruments and will be applicable starting 1 January of the year following its enactment.
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.
