The Moldavian government has concluded double tax treaties with the Republic of Albania, the Republic of Armenia, the Republic of Austria, the Republic of Azerbaijan, the Republic of Belarus, the Kingdom of Belgium, Bosnia and Herzegovina, the Republic of Bulgaria, Canada, the People’s Republic of China, the Czech Republic, the Republic of Croatia, the Republic of Estonia, Finland, the Federal Republic of Germany, the Hellenic Republic, Ireland, Israel, the Republic of Hungary, Japan, the Republic of Kazakhstan, Kyrgysztan, the Republic of Latvia, the Republic of Lithuania, Luxembourg, the Republic of Macedonia, the Republic of Montenegro, the Kingdom of the Netherlands, the Republic of Poland, Portugal, Romania, the Russian Federation, the Republic of Serbia, the Republic of Slovakia, Spain, the Swiss Confederation, the Republic of Tajikistan, the Republic of Turkey, Ukraine, the Republic of Uzbekistan, the Republic of Slovenia, State of Israel, and the Sultanate of Oman.
Many more drafts of tax avoidance agreements are waiting for the approval before being ratified and put into practice.
Even though is not a very large network of treaties, the Moldavian government is aware by the impact that these treaties can have on the economic market. The foreign investors can open business here without the fear that their incomes might be double taxed.
Moldova is usually using the credit method to avoid the double taxation. According to it, the incomes of a company with foreign participation are taxed in Moldova and the resident country is offering a refund for the amount. An important fact related to this method is that the claimed amount of money cannot be higher than the amount that could have been resulted after taxing the same amount of income in the resident country.
Moldova along with the DDT has also signed tax information exchange agreements. According to these treaties, Moldova must provide to the willing partners lists with the taxpayers and also receive this type of information from its partners. This way, the entrepreneurs wanting to take advantage on the double tax treaties regulations and not paying any taxes in Moldova and abroad are discouraged.
If an entity wants to claim a refund, he must bring a certificate of residence in another country and a proof that the taxes are already paid there (usually where the business takes place).