United States-Moldova Tax Treaty

Moldova International Tax Compliance Rules

Quick Summary.  Situated in Eastern Europe, Moldova is a landlocked country nestled between Romani and Ukraine.  It capital at Chisinau is located centrally within Moldova

Moldova is a parliamentary republic.  Having gained independence in 1991 following the dissolution of the Soviet Union, Moldova adopted a constitution in 1994.  The constitution provides for a unicameral legislative body known as the Moldovan Parliament.  The president serves as the head of state.  In addition, the constitution provides for an independent judiciary, establishing a Constitutional Court providing for judicial review.

The primary source of tax law is the Tax Code of the Republic of Moldova.

U.S.-Moldova Tax Treaty

Moldova is a member of the European Union, the United Nations, Council of Europe, the World Trade Organization, and the Organization for Security and Cooperation in Europe.

Moldova Tax Treaty.  Convention between the United States of America and the Union of Soviet Socialist Republics on Matters of Taxation

Currency.  Moldovan Leu (MDL)

Common Legal Entities.  Limited liability company, joint stock company, partnership, sole proprietorship, and branches.

Tax Authorities.  Serviciul Fiscal de Stat

Tax Treaties.  Moldova is party to at least 50 tax treaties.

Corporate Income Tax Rate.  12%

Individual Tax Rate. 18%

Corporate Capital Gains Tax Rate. Taxed at ordinary rates, although only 20% of capital gains are subject to tax.

Individual Capital Gains Tax Rate.  Taxed at ordinary rates, although only 20% of capital gains are subject to tax.

Residence.  Tax residence is generally determined based upon domicile or, alternatively, physical presence for more than 183 days in Moldova during the fiscal year.

Withholding Tax.

            Dividends. 6%

            Interest. 12%

            Royalties. 12%

Transfer Pricing. Moldova’s tax code provides for an arm’s-length standard.

CFC Rules. No.

Hybrid Treatment. No.

Inheritance/estate tax.  No.

Tax Treaty Network – International Tax Attorneys

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