The Government of Moldova approved the bill to ratify the Convention between Moldova and Malta on the avoidance of double taxation on earned incomes. The document signed in Valletta on April 10 this year aims to develop the bilateral economic relations in the area of elimination of double taxation on private individuals and legal entities and to attract foreign investment, IPN reports.

The convention sets the tax rates retained at the source of payment. Thus, 5% of the gross dividends will be retained when the dividends are paid by a company residing in Moldova to a resident of Malta. If the dividends are paid by a company residing in Moldova to a resident of Moldova, the tax on the gross dividends will not exceed the taxes imposed on the incomes from which the dividends are paid.

The tax retained from interest will represent 5% of the gross interest, while from royalty - 5% of the gross royalty payments.

The informative note to the bill says the ratification of the convention will have beneficial consequences in a wide range of areas and will serve as a basis for developing the economic relations, creating equal fiscal conditions for all the economic entities that will perform entrepreneurial activities and the people, and fostering cooperation between the international tax authorities with a view to combating tax evasion at international level.