Moldova

Corporate income tax (CIT)

Starting 2025, some expense deductibility thresholds are being updated. These updates apply from 2025 tax year forward. Specifically, these pertain to payments and expenses made by the employer on behalf of the employee, subject to the limits defined by applicable legislation:

• the value of gifts in kind, including vouchers, whose annual amount per employee does not cumulatively exceed 10% of the national average monthly salary forecast and approved by the Government for the year for which it was granted.
• employee professional development, as well as activities related to strengthening 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 enterprise’s total payroll fund determined for the previous or current year and the payroll fund of the persons specified under minor groups 112 and 121 from the Classification of Occupations of the Republic of Moldova for the respective year.
• medical services in the amount of one average monthly salary forecast and approved by the Government per employee.
• expenses incurred by the employer for organizing alternative childcare services or for payments made, for the benefit of the employee, to compensate the costs of alternative childcare services for children up to 3 years of age in amount not exceeding MDL 2,500 per month for each child of the employee.

• The deduction of expenses incurred by the legal entity for the buyback/cancellation of an option under a stock option plan is not permitted.

Starting 1 January 2026 the following deductibility rules entered into the force:

• The deduction of expenses incurred and covered by the employer, for the benefit of the employee, for subscriptions for the use of sports facilities for the practice of sport and physical education for maintenance, prophylactic, or therapeutic purposes, purchased from providers whose activities are classified under codes 93.11, 93.12, or 93.13 of the Classification of Activities in the Moldovan Economy, as well as from their intermediaries, and/or for the reimbursement of expenses incurred by employees at tourist accommodation establishments in rural areas of the Republic of Moldova, including expenses related to vacation vouchers, 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, per employee.
• It is permitted to deduct expenses incurred for the benefit of independent entrepreneurs who carry out independent activities in cases where: 

• • the expenses are borne by taxpayers who, on the last day of the fiscal period, have no more than 9 employees and generate an annual turnover of up to MDL 18 million or hold total assets of up to MDL 18 million, and the expenses do not exceed 10% of the taxpayer’s annual payroll fund (i.e. salary and other rewards for work performed, including material assistance) for the respective tax period;

  • the expenses are borne by taxpayers whose main activity (over 70% of turnover) is one of the following activities, according to the Classification of Activities in the Economy of Moldova (CAEM-2):

    59.1 – Motion picture, video and television programme production activities;

    90.01 – Performing arts activities (shows);

    90.02 – Support activities for performing arts (shows);

    93.11 – Activities of sports facilities;

    93.12 – Activities of sports clubs.

• The deductibility limit for the expenses paid by taxpayers during the fiscal period in the form of membership fees and subscription contributions intended for the activities of employers’ associations, foundations, and other associations representing entrepreneurial activity is set of 0.15% of the payroll fund or the amount of membership fees and subscription contributions not exceeding two average monthly salaries in the economy, as forecasted and approved by the Government for the year in which were incurred.
• The deductibility limit for the expenses incurred by taxpayers during the fiscal period in the form of financial allocations intended for trade union activities, to be used for the purposes established in the collective labour agreement is set of 0.15% of the payroll fund or the amount of membership fees and subscription contributions not exceeding two average monthly salaries in the economy, as forecasted and approved by the Government for the year in which were incurred.

Enterprises that, on the last day of the tax period, have no more than 249 employees and generate an annual turnover of up to MDL 100 million, or have no more than 249 employees and hold total assets of up to MDL 100 million, may pay the calculated income tax by the 25th day of the month following the month in which dividends were paid, including in the form of shares or equity interests, from the profit obtained during the fiscal periods 2023–2026 inclusive.

This provision does not apply to sole proprietorships, peasant farms, residents of free economic zones, residents of the Giurgiulesti International Free Port, residents of the Mărculesti International Free Airport, residents of information technology parks, economic agents applying the tax regime established in Chapter 71 of the Tax Code economic agents engaged in financial and insurance activities provided in Section K of the Classification of Activities in the Economy of Moldova, as well as economic agents engaged in activities provided in Section G of the Classification of Activities in the Economy of Moldova, who, on the last day of the tax period, have more than 49 employees and generate an annual turnover exceeding MDL 50 lei or have more than 49 employees and hold total assets exceeding MDL 50 million.

Payroll taxes

Starting 2024 (with some changes made in 2025), the following payments and expenses incurred on behalf of employees are considered as benefits in kind:

• The value of gifts in kind, including vouchers given to employees where the annual amount for each employee does 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 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, and/or for the reimbursement of expenses incurred by employees at tourist accommodation establishments in rural areas of the Republic of Moldova, including expenses related to vacation vouchers in an annual amount exceeding 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 exceeding 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, exceeding the limit determined by the government.
• The costs of employees’ supplementary health insurance exceeding 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 organising alternative childcare services or the payments made, for the benefit of the employee to compensate the costs of alternative childcare services for their children up to age of three, in amount exceeding MDL 2,500 per month for each child of the employee.

Additionally, for 2026, the annual personal income tax (PIT) allowance for individuals will be maintained at the same level as in 2025.

• 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 is recognised for tax purposes as employment relationships and taxed similarly to salary.

Value-added tax (VAT)

As of 1 January 2026:

• 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 threshold for VAT registration was increased to MDL 1.5 million.

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.

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 are not 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 1 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 2025, 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 semester 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 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-exempt.