Republic of Moldova strengthens tax cooperation with the EU to recover cross-border claims

Republic of Moldova and the EU strengthen cooperation on the recovery of tax debts

The Government of the Republic of Moldova has approved the draft law on mutual assistance for the recovery of claims related to taxes, customs duties and other payment obligations. The initiative establishes the legal framework for cooperation with European Union member states in identifying and recovering tax debts that extend beyond national borders.

A common mechanism for tax cooperation

Under the new legislative framework, the Republic of Moldova will be able to officially cooperate with the tax authorities of EU member states in cases where the debtor or their assets are located within the territory of a member state.

The cooperation will operate on a reciprocal basis. The State Tax Service (STS) will be able to request assistance from European authorities in recovering claims owed to the budget of the Republic of Moldova, while Moldovan tax authorities will be able to provide similar assistance to EU member states.

Exchange of information and notification of tax documents

The draft law establishes several forms of cooperation between tax authorities. These include the exchange of relevant information, as well as the transmission and notification of tax documents to taxpayers located in different jurisdictions.

Another element is the possibility of submitting official requests for the recovery of tax claims when these cannot be directly enforced within the territory of the creditor state.

Measures to safeguard tax claims

The new mechanism will also allow for the application of precautionary measures aimed at safeguarding assets and funds that may be used to settle tax obligations.

The expansion of the powers of the State Tax Service is intended to facilitate action by the authorities when a debtor’s assets or financial resources are transferred abroad.

Alignment of legislation with European standards

The Government expects the new framework to contribute to greater efficiency in combating tax evasion and recovering claims in cases involving a cross-border component.

The draft law is part of the process of aligning the legislation of the Republic of Moldova with the European Union acquis and aims to strengthen tax cooperation between the Republic of Moldova and EU member states.

Following its approval by the Government, the draft law will be submitted to Parliament for consideration.