Corporate income tax (CIT)
For the 2020 fiscal period, taxpayers may still choose the calculation method to be applied while determining the fixed assets depreciation for tax purposes, namely by fixed assets’ category or using the straight-line method. For the 2021 fiscal period, the straight-line method of depreciation will be mandatory.
Benefits granted by employers to their employees are deductible if such benefits are subject to all payroll taxes.
Donations made by taxpayers on the bank accounts of the Ministry of Finance or of the medical institutions in relation to the COVID-19 pandemic situation would be fully deductible for 2020 CIT purposes.
Payments performed by the employers in relation to testing of the employees for 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 will be deemed as a taxable source of income.
Dividends paid by Moldovan resident legal entities to other Moldovan resident legal entities do not represent taxable income, with some exceptions.
Starting 1 January 2021, mandatory Social Security Contributions due by the employer and employee is combined into a single 24% rate (with some exceptions) and is fully borne by the employer. The employee bear the single mandatory health insurance contribution of 9%.
Expenses incurred by employer for employee testing for COVID-19 detection are not subject payroll taxes.
Value-added tax (VAT)
Starting with 1 April 2020, foreign supplies of digital services to Moldova-based individuals (B2C transactions) are taxed with a 20% VAT in Moldova. In this sense, foreign companies that supply digital services to Moldovan-based individuals are required to follow a simplified registration through an electronic system of the Moldovan tax authorities to report and to pay related VAT from above-mentioned services.
Starting with 1 January 2021, 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 with 21 June 2021, during the state of emergency period a reduced 6% VAT rate apply for accommodation services, food, and beverages supplied by entities that provide public accommodation and catering services.
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
The deadline for reporting and paying the tax on immovable property has been modified. A single deadline has been established of 25 September of each year. The taxpayers may no longer benefit from the 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.
Starting 1 January 2021, local taxes are capped by the Moldovan tax code and local authorities should consider respective limits while approving the amount of the local taxes.
Starting January 1, 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.