Parliament backs, in first reading, withholding tax exemption on dividends, interest and royalties between Moldovan and EU companies

On October 2, Parliament approved in first reading amendments to the Tax Code that exempt from withholding tax the dividends, interest and royalties paid between associated companies in Moldova and EU member states. The Finance Ministry’s bill received 64 votes.

For interest and royalties, the exemption applies if the companies hold at least 25% of each other’s share capital continuously for at least 12 months. Dividends received from an EU subsidiary or paid to an EU parent company will be exempt if the holding is at least 10% of the capital, also held for one year. The bill still needs a second reading.

What it means for you

• Companies with European capital and groups with EU subsidiaries could repatriate profit and pay interest or licence fees without withholding tax.
• Check your ownership structure: the 25% and 10% thresholds and the 12-month period are decisive.
• The rules are not final yet — watch for the final text and the effective date.

Source: Ziarul de Gardă, 02.10.2026