Moldova

Individual - Taxes on personal income

Last reviewed - 14 February 2020

Moldovan residents (both Moldovan citizens and foreigners) are subject to taxation for their income received during the fiscal period from any sources within the Republic of Moldova, as well as from sources outside the country for their work activity effectively performed in the Republic of Moldova (except income that is expressly tax exempt under the Moldovan law).

Moldovan citizens receiving investment and financial income from sources outside Moldova are also subject to tax on this income in Moldova.

At the same time, individuals qualifying as non-residents for Moldovan PIT purposes are subject to Moldovan tax for the income derived from Moldovan sources (e.g. income received from property located in Moldova, remuneration for activity performed in Moldova, interest and royalties received from Moldovan legal entities).

Personal income tax rates

The Tax Code provides the following PIT rates for 2020:

Type of income Rate
For residents (standard taxation):
Income from employment, including benefits in kind and from professional or entrepreneurial activity 12%
Capital gains
Other taxable income
Individual entrepreneurs
Income for farming enterprises 7%
For residents (final taxation):
Dividends, except for 2008 to 2011 profit distribution 6%
Dividends related to 2008 to 2011 profit distribution 15%
Income from the withdrawn amount from the share equity related to previously increased share equity upon distribution of the net profit and/or other sources recorded in the owners’ equity between shareholders (associates) according the participation share in the equity for the fiscal period 2010/11. 15%
Gains from promotional campaigns 12% for the amount exceeding MDL 24,000 for each gain
Gambling revenues 12%
Winnings from lotteries and sport bets 12% for the amount exceeding 1% of the personal allowance (i.e. MDL 240) for each win
Royalty paid to individuals 12%
Income from supply of phytotechnical, horticultural, and zootechnical products 5%
Money donated by legal entities to individuals who do not perform business activity 6%
For non-residents:
Income from employment, including benefits in kind 12%
Dividends, except for 2008 to 2011 profit distribution 6%
Dividends related to 2008 to 2011 profit distribution 15%
Income from the withdrawn amount from the share equity related to previously increased share equity upon distribution of the net profit and/or other sources recorded in the owners’ equity between shareholders (associates) according to the participation share in the equity for the fiscal period 2010/11. 15%
Other types of income 12%

Resident individuals and Moldovan citizens who record a difference of more than MDL 300,000 between the estimated taxable income and the taxable income declared are subject to indirect estimation methods.