Moldova

Corporate income tax (CIT)

As of 1 January 2024, employers will be entitled to deduct additional expenses as well as:

• Payments and expenses incurred by the employer for the benefit of the employee within the limits established by the legislation, namely:  

• • The value of gifts in kind, including vouchers given to employees where the annual amount for each employee does not cumulatively exceed the value of 10% of the national average monthly salary, as per the government-approved forecast and approved by the government for the year for which it was granted.
  • The training of employees and for activities related to the consolidation of corporate culture and team spirit, in the manner established by the government, in an annual amount not exceeding 5% of the value calculated as the difference between the total labour remuneration fund per enterprise, determined for the previous year or for the current year, and the remuneration fund for the work of persons specified in minor groups 112 and 121 of the Occupations Classifier of the Republic of Moldova for the respective year.
  • Subscriptions for the use of sports facilities for the practise of sports and physical education for maintenance, prophylactic, or therapeutic purposes purchased from suppliers the activities of which are classified under codes 93.11, 93.12 or 93.13 of the Activities classifier in the economy of Moldova, as well as from their intermediaries, in an annual amount of up to 50% of the national average monthly salary forecast and approved by the government for the year for which it was granted, for each employee.
  • The contracting of medical services in the amount of the national average monthly salary forecast and approved by the government for the year for which it was granted, for each employee.
  • Payments of expenses incurred and determined for the transport and food for trainees and/or students, up to the limit determined by the government.
  • The costs of employees’ supplementary health insurance in the amount of the national average monthly salary, as per the government-approved forecast, for each employee.
  • The amounts of payments made on behalf of employees for the purpose of compensating the costs of childcare services for their children up to the age of three, without exceeding 2,500 MDL per month for each child. The maximum amount of these expenses should be deducted in the amount of 5% from the labour remuneration fund for the current year.
• Likewise, the right to deduction for these types of expenses which exceed the threshold established by legislation will not be limited if, in relation to them, were calculated social security contributions and/or withheld health insurance contributions and income tax owed by the employer and the employee.
• Donations for philanthropic or sponsorship purposes to trade unions and employer organisations at up to 5% of the taxable income.

Starting 01 January 2025:

• Losses obtained following the sale or exchange of property, the performance of works and the provisions of services, carried our directly or mediated between affiliated parties, will be allowed for deduction if the arm's length principle has been applied in determining the price for these transactions.
• No deduction will be allowed for the expenses incurred by the legal entity for the redemption or cancellation of options from stock option plan.
• The deductibility threshold of bad debt with an expired statute of limitations has been increased from MDL 1,000  to MDL 2,000.
• Non-banking financial institutions will be allowed to deduct provisions relating to allowances for assets losses and conditional commitments calculated in accordance with IFRS.
• The right to apply the accelerated depreciation method for the first year of putting the fixed assets into operation is granted to all legal entities, except for legal entities that  carry out financial insurance/reinsurance activities provided for in section K of the Activities classifier in the Moldovan economy.

Payroll taxes

Starting 01 January 2024, the following payments and expenses incurred on behalf of employees will not be considered as benefits in kind:

• The value of gifts in kind, including vouchers given to employees where the annual amount for each employee does not cumulatively exceed the value of 10% of the national average monthly salary forecast and approved by the government for the year for which it was granted.
• The training of employees and for activities related to the consolidation of corporate culture and team spirit, in the manner established by the government, in an annual amount not exceeding 5% of the value calculated as the difference between the total labour remuneration fund per enterprise, determined for the previous year or for the current year, and the remuneration fund for the work of persons specified in minor groups 112 and 121 of the Occupations Classifier of the Republic of Moldova for the respective year;
• Subscriptions for the use of sports facilities for the practice of sports and physical education for maintenance, prophylactic, or therapeutic purposes purchased from suppliers the activities of which are classified under codes 93.11, 93.12 or 93.13 of the Activities classifier in the economy of Moldova, as well as from their intermediaries, in an annual amount of up to 50% of the national average monthly salary forecast and approved by the government for the year for which it was granted, for each employee.
• The contracting of medical services in the amount of the national average monthly salary forecast and approved by the government for the year for which it was granted, for each employee.

• Payments of expenses incurred and determined for the transport of and food for trainees and/or students, up to the limit determined by the government.
• The costs of employees’ supplementary health insurance in the amount of the national average monthly salary, as per the government-approved forecast, for each employee.
• The amounts of payments made on behalf of employees for the purpose of compensating the costs of childcare services for their children up to the age of three, without exceeding MDL 2,500 per month for each child.

As of 01 January 2025, the rights granted under the stock option plan, at the time of granting, in accordance with the conditions established by the Government are considered non-taxable income.

In addition, the annual amount of personal income tax allowance for individuals has been increased:

• personal allowance - MDL 29,700
• major personal allowance - MDL 34,620
• spouse’s major allowance – MDL 21,780
• allowances for dependant – MDL 9,900

Mandate relationships between the legal entity and the administrator will be recognised for tax purposes as employment relationships and taxed similarly to salary.

Value-added tax (VAT)

As of 15 August 2024, the settlement of additional costs or revenues from balancing the system, according to point 707 of the Electricity Market Rules, approved by the National Agency for Energy Regulation, will not constitute objects of taxation with VAT.

As of 01 January 2025:

• The deduction of the amount of VAT related to procurement from suppliers included in the list of taxpayers obliged to issue e-invoices will no longer be conditional on issuance through this platform.
• The VAT amounts related to the goods purchased, as well as those related to the goods, services purchased that were used in the manufacture of goods will be allowed for deduction for cases when they were destroyed in the process of an entrepreneur’s activity as a result of exceptional situations, as defined according to Government Decision no. 1076/2010, and under the conditions in which these situations are demonstrated and confirmed.
• The obligation has been established to issue e-invoices for the delivery of goods and/or services (except for deliveries of electricity, thermal energy, natural gas, electronic communications services and home utilities) to economic agents from the Republic of Moldova that do not have tax relations with its budgetary system or within the implementation of technical and investment assistance projects.

From 2026, cars and other vehicles will be taxed at the standard VAT rate of 20%.

Excise duties

The excise duties rates are gradually increased in line with Deep and Comprehensive Free Trade Agreement (DCFTA) provisions to which the Republic of Moldova is part.

Excise duties are not paid for goods subject to excise duties that are imported by legal entities for non-commercial purposes if the intrinsic value of these goods does not exceed the sum of 100 euros (EUR).

A new excise duty calendar has been set for the period 2024 to 2026. From 2026, excise duty on vehicles will be abolished, except for the excise duty on luxury cars.

As of 2025, excise duties will not be levied on fur clothing.

The excise duty rates for tobacco products are to be adjusted over a period of three years.

Tax on immovable property

As of 01 January 2025, for certain categories of real estate, the local council can increase the real estate tax by up to 300%.

Taxes on the natural resources

As of 1 January 2024, natural resources taxpayers have to submit the tax return and pay the taxes by the 25th day of the month following the end of the reporting quarter as follows:

• 50% of the tax amount is paid to the first-level local budget.
• 50% of the tax amount is paid to the state budget.

Withholding taxes (WHTs)

As of 1 March 2024 banks, savings and loan associations, and issuers of debt securities and bonds withhold a 6% tax from interest paid to resident individuals.

As of 15 August 2024, the income of resident individuals obtained in the form of capital gains or interest related to state securities and/or related to bonds issued by local public administration authorities are considered tax - exempted.