National legislation on direct taxation aligned with European Union standards

Chișinău, November 5, 2026 – National legislation on direct taxation has been aligned with European Union standards. Parliament voted in the second reading on a draft law amending the Tax Code.

The legislative initiative concerns the taxation of interest, royalties and dividends, as well as the introduction of rules on controlled foreign companies and the settlement of tax disputes. The draft law was developed in the context of accelerating the process of harmonizing national legislation with the European Union legal framework.

The Tax Code has been supplemented with a new chapter providing for the elimination of any form of taxation of interest and royalties in the Member State from which these payments originate. Thus, income sourced in the Republic of Moldova will be exempt from withholding income tax only if the beneficial owner is a company from an EU member state or a permanent establishment of a company from a member state. Non-taxation will apply only under certain conditions expressly established by law.

The draft law also transposes into national legislation the Directive on the common tax regime applicable to parent companies and subsidiaries in different member states, which aims to eliminate the double taxation of income distributed between subsidiaries and parent companies in the European Union. Another amendment to the Tax Code concerns the introduction of rules on controlled foreign companies. These rules aim to tax profits transferred by groups of companies to controlled subsidiaries in low-income jurisdictions. At the same time, the draft law contains provisions on mechanisms for settling tax disputes.

The adopted legislative amendments will enter into force on the date of the Republic of Moldova’s accession to the European Union.



Communication and Public Relations Department of the Parliament of the Republic of Moldova