The paper explores how cutting corporate taxes in Moldova could lead to more tax competition in Eastern Europe. Countries in the region have adjusted their tax rates in response to each other in the past. The zero corporate tax in Moldova might prompt other countries to lower their taxes too. This could result in less tax revenue for governments, but it might also make the economy more efficient. However, it could also lead to less fairness in the tax system. Coordinating tax policies between countries could help prevent further drops in corporate taxes, but it might not be easy to achieve. Without coordination, corporate taxes in the region could keep decreasing.