TLA 1 - Approval of tax and customs legislation amendments

In brief

Laws significantly amending the Republic of Moldova’s fiscal, customs and other normative acts have been published.

In detail

Income tax

Personal income tax

Annual allowances have been increased as follows:

• Personal allowance – MDL 27,000;
• Major personal allowance – MDL 31,500;
• Spouse’s major allowance – MDL 19,800;
• Allowance for dependants – MDL 9,000, except for people with disabilities, for whom the allowance is MDL 19,800.

The deadline for individuals who do not conduct entrepreneurial activity to register real estate rental/usage contracts with the State Tax Service has been extended from three days to seven days.

Withholding tax

Withholding tax on gambling earnings has been increased from 12% to 18%.

Non-taxable income now also includes:

• Payments made by the employer for employees to be vaccinated against SARS-CoV-2;
• Revenue from reversal or recovery of expenses not previously deducted for tax purposes.

Deductible expenses

Taxpayer expenses from membership fees for irrigation water user associations are deductible.

As irrigation water users’ associations are on the list of non-profit organisations, philanthropic or sponsorship donations made for their benefit are deductible at up to 5% of taxable income.

Employer expenses for employee vaccinations against SARS-CoV-2 are deductible.

The tax deductibility rules have been amended for expenses incurred on payments made for the benefit of employees. Such expenses are now deductible even if not all payroll taxes have been calculated and paid.

Evidence and calculation of fixed assets amortisation for tax purposes

Differences in fixed asset depreciation are not recognised for tax purposes.

As of 1 January 2022, economic agents that become an information technology park resident during the tax year can deduct for tax purposes fixed asset repair and amortisation expenses incurred during the period of application of the general tax regime.

For economic agents whose information technology park resident title has been withdrawn, the amortisable value of fixed assets, at the start of the month following that in which the title was withdrawn, represents their accounting value with an adjustment representing the amount of their previously recognised revaluation and depreciation.

Tax regime for small- and medium-sized enterprises (IVAO)

The non-taxable sources of income included in art. 20 of the Tax Code do not represent objects of taxation at 4%.

Value added tax (VAT)

Tax invoice

The deadline for issuing e-invoices for service provision and supplies of petroleum products is now the tenth calendar day of the month following that in which the delivery took place.

Excise duties

A minimum value threshold has been established for excise duties on cigarettes under certain tariff headings.

As of 2022, cartridges, refills and preparations for use therein for electronic cigarettes are subject to excise duties.

Property tax

The deadline for applying the Law on the implementation of the Tax Code Title VI provisions on land and property tax calculations has been extended to 1 January 2024.

Compulsory state social security contributions

Employer social security contributions (SSC) remain at 24%. SSC rates applicable to employers in all fields also remain unchanged.

The annual fixed SSC has been increased from MDL 11,331 to MDL 12,838.

No SSC is calculated on payments made by employers for vaccinating employees against SARS-CoV-2.

Compulsory health insurance contributions

Health insurance contributions (HIC) remain at 9% of the labour remuneration fund and other forms of remuneration.

The annual fixed HIC remains MDL 4,056 per year.

The Customs Code

A procedure has been introduced for designating the approved consignee for transit and TIR Convention purposes.

The conditions for granting Authorised Economic Agent (AEO) status have been changed. Economic operators requesting AEO status have to demonstrate compliance with tax and customs legislation during the last three years prior to the application. Fulfilment of this condition is considered the absence of serious or repeated infringements of the legislation by the:

• applicant,
• employee responsible for the applicant’s customs area, and
• the person empowered to represent the applicant or who manages the applicant.

A list of such infringements considered serious is provided in the Customs Code.  

The Contravention Code

Penalties for violating vignette rules have been established.

Population support fund law

The 2.5% tax on revenues from the provision of mobile telephone services has been revoked.

[Source: Law on compulsory health insurance funds for 2022, Law on the state social security budget for 2022, Monitorul Oficial no. 315–324 dated 24 December 2021, Law no. 204 dated 24 December 2021 on amending and supplementing certain legislative acts, Monitorul Oficial nr. 325–333 dated 31 December 2021]

The takeaway

Legal provisions amending fiscal, customs legislation and other normative acts entered into force on 1 January 2022.

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