Moldova

Residents

Resident legal entities making payments to individuals (other than salary payments) must withhold and pay WHT to the MTA at the following rates:

• Preliminary WHT:
  • 12% preliminary withholding of payments made for the benefit of resident individuals, unless such payments are tax exempt.
  • 12% preliminary withholding from interests.
  The beneficiary deducts (i.e. recovers) the amount of preliminary WHT from annual income tax due.
• Final WHT:
  • 12% final withholding of an individual's income derived from leasing, rent, and usufruct of movable and immovable property.
  • 6% final withholding of dividends paid out to individuals, except for dividends for the profits received between 2008 and 2011, for which the WHT rate is 15%.
  • 15% from the amount withdrawn from the share capital related to the increase arisen from the distribution of net profit and/or other sources identified as equity among shareholders (associates) throughout the 2010 to 2011 fiscal period, in accordance with the share capital venture quota.
  • 6% from payments performed for the benefit of individuals, other than individual entrepreneurs and farmers, on income obtained from supplying phytotechnical, horticultural, and zootechnical products, except natural milk.
  • 12% from payments performed for the benefit of individuals, other than individual entrepreneurs and farmers, on income obtained from supplying goods through consignments trade units.
  • 12% from winnings from promotional campaigns on each win value exceeding the personal annual allowance of MDL 27,000. Earnings from promotional campaigns are considered non-taxable in the amount of each earning that does not exceed the personal annual allowance.
  • 18% from gambling winnings.
  • 18% from earnings from lottery and sport betting on each win value exceeding 1% of the personal allowance (i.e. MDL 270). Earnings from lottery and sport betting are considered non-taxable in the amount of each earning that does not exceed 1% of the personal allowance. 
  • 12% from royalty payments (except royalty income of individuals aged 60 and over in the field of literature and art).
  • 6% from the amount of money donated by legal entities to individuals who do not perform business activity.
  • 6% from the amount of interest paid to resident individuals by banks and savings and loan associations, as well as issuers of corporate securities.
  • The Ministry of Finance or primary dealers will also withhold a tax of 6% from interest income earned by individuals from government securities.
  The tax charged to residents under this paragraph is a final one and exempts the recipient of such income from including it into gross income, as well as from declaring it.

Non-residents

The following WHT rates apply upon payments to non-residents:

• 6% for dividend payouts, except for dividends for the profits received between 2008 and 2011, for which the WHT rate is 15%.
• 15% from the amount withdrawn from the share capital related to the increase arisen from the distribution of net profit and/or other sources identified as equity among shareholders (associates) throughout the 2010 to 2011 fiscal period, in accordance with the share capital venture quota.
• 12% for other revenues.

Double tax treaties (DTTs)

The DTTs in force between Moldova and other countries may provide for more favourable tax rates than those provided by the local provisions. For their application, the foreign beneficiary of such income should provide the paying entity with its fiscal residency certificate before the payments are actually made. The Moldovan tax law expressly provides that the DTTs prevail over the national provisions. The only exception refers to the case where the domestic norms provide for more favourable tax rates (i.e. in such circumstances, the domestic ones shall apply).

Currently, Moldova has 50 operational DTTs, as outlined below:

* If multiple rates are listed, then the WHT rate to be applied is subject to fulfilment of specific criteria provided by the DTT.

** 15% on dividends referring to the profit earned incurred during the period 2008 to 2011.

Law no. 208, dated 15 July 2022, entered into force for the ratification of the Convention between the Government of the Republic of Moldova and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion and fraud regarding income taxes. To apply the provisions of the Convention, the contracting states will notify each other of the fulfilment of all the internal procedures necessary for entry into force.

The provisions of the Convention apply:

• In the case of income taxes withheld at source, to taxable amounts realised on or after 1 January of the calendar year following the year of the Convention's entry into force.
• In the case of income taxes that are not withheld at source, to related revenue, as the case may be, for any of the calendar year or accounting period that begins on or after 1 January of the calendar year immediately following the year of the Convention's entry into force.
• In the case of other taxes, to a taxable event taking place on or after 1 January of the calendar year immediately following the year of the Convention's entry into force.