Social security contributions
Contributions to the Social Security Budget are mandatory for Moldovan citizens; however, unlike taxes, they have an exact destination and are available for refund to the taxpayer in the form of pensions, allowances, etc.
Generally, employers must pay social security contributions of 18% (with some exceptions) of their employees' gross salary and other remunerations to the Social Security Fund. Employees pay an individual contribution in the amount of 6% of their gross salary and other remunerations. The legislation provides an annual fixed social security contribution for other categories of taxpayers in an amount approved for each year (e.g. MDL 10,740 applicable in 2020).
The table below summarises information about the type of employers and SSC rates applicable by them and their employees.
|Employers in the private sector, higher education, and medical institutions||18%||6%|
|Employers for employees working in special conditions||26%||6%|
|Employers whose main activity is software development||18% applied to two forecasted national average monthly salaries||6%|
|Employers in agriculture||18%, with 12% paid by the employer and 6% by the state budget||6%|
Starting 1 January 2021, mandatory social security contributions due by the employer and employee will be combined into a single 24% rate (with some exceptions) and will be fully borne by the employer.
Employers have to report social security contributions on a monthly basis (with certain exceptions) through the unique payroll tax return. The social security contributions due by both employer and employee must be transferred by the employer to the budget no later than the 25th day of the month following the reporting one.
For foreign citizens and stateless people employed under labour agreements in Moldova, social security contributions are computed similarly as for Moldovan citizens (with some exceptions).
Moldova currently has social security agreements concluded with Austria, Belgium, Bulgaria, the Czech Republic, Estonia, Germany, Hungary, Lithuania, Luxembourg, Poland, Portugal, Romania, and Turkey. Moldova also has pension agreements concluded with Azerbaijan, Belarus, Russian Federation, Ukraine, and Uzbekistan.
Health insurance contributions
The mandatory health insurance contribution, computed as a percentage of wages and other remuneration is established at 4.5% for each payer category (employers and employees). The legislation also provides for an annual fixed amount of health insurance contribution paid by other categories of taxpayers in an amount approved for each year (e.g. MDL 4,056 applicable in 2020).
Starting 1 January 2021, health insurance contributions will be fully borne by the employee through a 9% single contribution.
For foreign citizens and stateless people employed under labour agreements in Moldova, health insurance contributions are computed similarly as for Moldovan citizens. In the absence of a local labour agreement, foreign citizens can opt for optional health insurance from a private provider.
Moldovan citizens who are unemployed and not insured by the government have the liability to pay fixed health insurance contributions if their presence in Moldova exceeds 183 calendar days.
Value-added tax (VAT)
The standard VAT rate in Moldova is currently 20%. It is generally applied to local supplies of goods and services as well as to goods subject to import and services subject to the reverse charge mechanism.
See the Other taxes section in the Corporate tax summary for more information.
Starting with 2016, a wealth tax has been introduced in Moldova for individuals who own real estate (except for land).
The object of taxation is considered the real estate of residential destination that meets simultaneously the following conditions:
- The total estimated value is at least MDL 1.5 million.
- The total surface is equal to or greater than 120 square metres.
The taxable base of real estate is represented by its estimated value determined by territorial cadastral bodies (with some exceptions).
The wealth tax rate is 0.8% of the taxable base.
The wealth tax is payable by 25 December of the reporting year, based on the notification of payment presented by the territorial tax offices for the situation existing as at 1 November of the reporting year.
Inheritance, estate, and gift taxes
Patrimony received by Moldovan citizens by inheritance is not taxable.
Tax on immovable property
Property tax is imposed on property located in Moldova and owned both by Moldovan and foreign citizens. The tax applies to the estimated value of buildings, houses, apartments, and land, and depending on the location, it varies between 0.05% and 0.4% of the property's taxable base. In addition, for surfaces exceeding 100 square metres, the rate increases by an amount approved by the legislation.
The land tax rate for individuals depends on the land's destination (e.g. land for agriculture usage) and location, its cadastral index and surface, but cannot exceed MDL 30 for 100 square metres.
There are also separate rates for agricultural land with construction buildings on it (minimum rate of 0.1% and maximum rate of 0.3%).
Individuals are exempt from the payment of customs duties on goods whose customs value does not exceed EUR 300 in the case of land transport, or EUR 430 for air and maritime transport, and which are not used for entrepreneurial or commercial purposes. Individuals who import goods worth more than EUR 300, in the case of land transport, or EUR 430, for air and maritime transport, will have to pay import duties on the full amount of these goods.
Starting with 1 January 2020, individuals pay import duties on goods imported by mail deliveries in B2C (business to consumer) commercial transactions. The provisions apply to goods of a commercial nature exceeding the quantitative limits established by the law or that have an intrinsic value exceeding EUR 200 per delivery.