Corporate income tax (CIT)
Starting with the 2021 fiscal period:
- the straight-line method of fixed assets depreciation is mandatory for tax purposes
- benefits granted by employers to their employees are deductible if such benefits are subject to payroll taxes, and
- payments performed by the employers in relation to testing of the employees for COVID-19 and vaccination of the employees against COVID-19 are fully deductible for CIT purposes.
Starting 1 January 2021, membership fees paid for the benefit of foundations or other business associations are permitted for deduction within the limit of 0.15% from the remuneration fund.
Starting 1 January 2021:
- interest income from state securities is deemed as a taxable source of income, and
- dividends paid by Moldovan resident legal entities to other Moldovan resident legal entities do not represent taxable income, with some exceptions.
Starting 1 January 2022, membership fees for irrigation water users' associations are fully deductible for CIT purposes.
Starting with the 2022 tax period, expenses not adequately supported by necessary documentation are fully allowed for deduction provided they are ordinary and necessary and have been paid through a business card.
Starting 1 January 2021, mandatory social security contributions (SSC) due by the employer and employee are combined into a single 24% rate (with some exceptions) and are fully borne by the employer. The employee bears the single mandatory health insurance contribution of 9%.
Expenses incurred by an employer for employees testing for COVID-19 detection and vaccination of the employees against COVID-19 are not subject to payroll taxes.
Value-added tax (VAT)
Starting 1 January 2021, the VAT rate for accommodation services, food, and beverages supplied by entities that provide public accommodation and catering services has been decreased from 15% to 12%.
Starting 15 April 2022, the e-book production and/or audio and electronic periodicals publications and/or audio, as well as editing services, services regarding copyright, and related rights, are VAT-exempted supply without deduction right.
Starting 1 May 2022, a taxable subject must provide to the buyer an electronic tax invoice (i.e. 'e-Factura') for VATable supplies of main petrol products (i.e. gasoline, diesel) performed on Moldovan territory.
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.
Tax on immovable property
A single reporting and payment deadline for immovable property tax has been established of 25 September of each year. Taxpayers may no longer benefit from a 15% discount at the payment of the tax on the immovable property by 30 June.
Taxes on the natural resources
As of 1 January 2021, several taxes on natural resources have been repealed, and the following taxes are in force:
- Tax on the water.
- Tax on the mineral exploration.
- Tax for the usage of underground areas.
Withholding taxes (WHTs)
Starting 1 January 2021, banks, savings and loan associations, as well as issuers of corporate securities withhold a final tax in the amount of 3% from the interest paid to resident individuals.
Starting 1 January 2022, WHT on gambling earnings has been increased from 12% to 18%.