Moldova Parliament advances tax reforms to align with EU standards

The Parliament of the Republic of Moldova has approved a legislative initiative in its first reading to align national tax regulations with European Union standards. The proposed changes to the Tax Code aim to prevent double taxation for European investors by exempting certain interest and royalty payments made to companies or permanent representations based in EU member states from withholding tax.

Marcel Spatari, President of the Economy, Budget, and Finance Committee, noted that the measure aligns with the principle of free movement of capital within the EU, ensuring that investors pay dividend taxes in their country of origin. This move is intended to facilitate future EU integration.

Additionally, the Ministry of Finance is promoting a mechanism to defer excise duty payments for products used in manufacturing or processing. Under this proposal, duties would not be paid until the production process is complete, provided that any potential tax liability is guaranteed. This measure is intended to take legal effect upon Moldova's accession to the EU.