Tax laws Moldova
Moldova's tax system comprises various taxes, including personal and corporate income taxes, value-added tax (VAT), and others. The Ministry of Finance oversees tax policy and administration.
1. Personal Income Tax (PIT):
Flat Rate: A single flat rate of 12% applies to most personal income, including employment income, professional activities, and entrepreneurial earnings.
Capital Gains: Taxed at the standard PIT rate of 12%, with 50% of the capital gain considered taxable.
Farming Enterprises: Income is taxed at a reduced rate of 7%.
Dividends: Subject to a 6% final withholding tax, applicable to dividends distributed from profits earned between 2008 and 2011.
2. Corporate Income Tax (CIT):
Standard Rate: A flat rate of 12% is applied to corporate profits.
Capital Gains: Subject to the standard CIT rate of 12%.
IT Companies: Since 2018, IT companies registered in Moldova's IT Park benefit from a unique tax rate of 7% on their gross income.
3. Value-Added Tax (VAT):
Standard Rate: A rate of 20% applies to most goods and services.
Reduced Rates: Rates of 12% and 8% apply to specific goods and services, as defined by law.
4. Recent Developments:
- Transnistria Customs Duties: In 2024, Moldova mandated that companies in Transnistria register with Moldovan authorities and pay import customs duties (excluding VAT and excise duties), aiming to reduce smuggling and align customs procedures.
5. International Tax Relations:
EU Alignment: Moldova is working towards aligning its indirect tax legislation, including VAT and excise duties, with EU standards.
Tax Treaties: Moldova is a party to at least 50 tax treaties, facilitating international taxation and reducing the risk of double taxation.
Note: Tax laws and regulations are subject to change. For the most current information, consult the Ministry of Finance or seek professional tax advice.
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