The press release summarises the key points:
- The Convention is comprehensive in scope and generally follows the OECD Model Convention. It applies to taxes on income and gains imposed by both States.
- The main purpose of the Convention is to avoid the taxation of income or gains in both countries. This is achieved by allocating exclusive taxing rights to one or other country, or where both countries retain taxing rights, by requiring the country of residence of the taxpayer to grant credit for the tax paid in the other country.
- In the case of dividends, and royalty payments, substantial reductions are provided for in the Convention. In the case of interest payments the Convention provides for either an exemption or a substantial reduction from withholding tax on these payments.
Ireland has currently 46 Double Taxation Treaties in force with another two in the pipeline.
The convention is available http://www.revenue.ie/en/practitioner/law/double/moldova.pdf