DOMENIUL DE APLICARE AL CONVENŢIILOR INTERNAŢIONALE PENTRU EVITAREA DUBLEI IMPUNERI FISCALE
SCOPE OF INTERNATIONAL CONVENTIONS FOR THE AVOIDANCE OF DOUBLE TAXATION

Summary/Abstract: Unlike the definitions given by the OECD Model Convention (1977), the conventions concluded by the Republic of Moldova on the notion of "person" do not include the element of society, replacing it with the notion of a legal entity. However, the conventions concluded by the Republic of Moldova in the article that will refer to the general definitions (art. 3), will not even refer to the content of a legal person, as is done in the case of the Model Convention, when it refers to the notion of "society". These distinctions do not have deviant interpretations, because the notion of "company" is defined by the Model Convention in the following way: "the term "company" designates any legal person or any entity that is considered for taxation purposes as a legal person". Therefore, in the broad sense of the concept of "legal person", used in the conventions concluded by the Republic of Moldova, only those legal persons that are taken into account "for the purpose of taxation" can be defined, i.e. legal persons that are subject to taxation with regard to taxes which are covered by the convention. In the case of legal entities, when it is a resident of both contracting states, it is considered resident in that contracting state where the effective management body is located. It is necessary to underline the fact that the international benefits of elimination of double taxation are offered only to subjects’ resident in one or both signatory states. A taxable subject who is not resident in one of these states will not be able to benefit from the provisions of the conventions. However, the principle according to which the provisions of the conventions are applied only to the residents of the signatory states is not applicable in two situations: the one regulated in art. 24 (principle of non-discrimination); as well as the one from art. 26 (exchange of information) between the two signatory states.

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