The Republic of Moldova will have with Germany a convention for the avoidance of double taxation and prevention of tax evasion with respect to taxes on income and property. The Cabinet on Wednesday approved a draft on granting powers to the official delegation to negotiate the draft convention, IPN reports.

Currently, between the Republic of Moldova and Germany, there is implemented the Agreement for the avoidance of double taxation of income and property signed with the Union of Soviet Socialist Republics on November 24, 1981 in Bonn and its Protocol. “The text of the Agreement and the Protocol applied by succession do not contain the new amendments made to the Model Tax Convention by the Organization for Economic Cooperation and Development following the approval by the OECD of the BEPS (Base Erosion and Profit Shifting) action plan, the negotiation of a new convention being more opportune,” the Finance Ministry noted.

At present, the Republic of Moldova applies conventions for the avoidance of double taxation with 52 partner states.