Signing of Double Taxation Convention between Ireland and the Republic of Moldova
The Ambassador to the Republic of Moldova, Mr. John Morahan, on behalf of the Government of Ireland and Mr. Viorel Dandara, Deputy Minister of Finance of the Government of Moldova signed a Double Taxation Convention between Ireland and the Republic of Moldova in Chisinau on 28th May 2009.
Negotiations for a Convention with Moldova took place in Dublin in February 2007.
The Convention is comprehensive in scope and generally follows the OECD Model Convention. It applies to taxes on income and gains imposed by both States.
The main purpose of the Convention is to avoid the taxation of income or gains in both countries. This is achieved by allocating exclusive taxing rights to one or other country, or where both countries retain taxing rights, by requiring the country of residence of the taxpayer to grant credit for the tax paid in the other country.
In the case of dividends, and royalty payments, substantial reductions are provided for in the Convention. In the case of interest payments the Convention provides for either an exemption or a substantial reduction from withholding tax on these payments.
Other important Articles in the Convention include the non-discrimination provisions, which protect nationals of each country from discriminatory tax provisions in the other and also the exchange of information provisions, which are necessary to counter tax evasion.
The Convention is expected to have a positive impact on trade and investment between Ireland and Moldova. Moldova The reductions and exemptions in withholding taxes and other fiscal benefits conferred in the Convention will significantly assist future Irish Business and investment in Moldova which is an emerging economy anxious to promote investment and economic development.
If, as expected, the provisions for ratifying the Convention are completed by both countries in 2010 it will enter into effect from 2011.
Ireland has currently 46 Double Taxation Treaties in force with another two in the pipeline.
See the 
text of the Convention (PDF, 115KB)
Ends 04/06/09