Moldova

Corporate - Significant developments

Last reviewed - 31 January 2022

Corporate income tax (CIT)

Starting the 2021 fiscal period, the straight-line method of fixed assets depreciation for tax purposes is mandatory.

Benefits granted by employers to their employees are deductible if such benefits are subject to payroll taxes.

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.

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.

Payroll taxes

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 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%.

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.

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. 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As of 1 January 2021, several taxes on natural resources have been repealed, and the following taxes are in force: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, withholding tax on gambling earnings has been increased from 12% to 18%.