The Fiscal System of the Republic of Moldova

To manage a business effectively, it is essential to know the tax system of the respective country and how it works.

Due to its favorable geographical position, the Republic of Moldova is a platform for the location of international organizations and transnational corporations and is becoming increasingly attractive for conducting business between western and eastern markets, emphasizing skilled labor, fertile soils, and participation of the republic in trade areas free with the CIS and South-Eastern European countries.

The amount of the taxes and fees may vary depending on the type of company, so a future businessman in the Republic of Moldova will have to pay the following taxes and fees such as:

• IncomeTax 

• VAT

• Share of Social Insurance Contribution (Social Fund)

We present below the basic elements of the fiscal system of the Republic of Moldova.

Tax rates by categories:

• For an individual, individual entrepreneurs and family doctors holding the practice, who exercise independent professional activity - the tax rate is 12% of the annual taxable income;

• For legal entities it is in the amount of 12% of the taxable income;

• For peasant households (farmers) - in the amount of 7% of taxable income;

• For the economic agents whose income was estimated under art.225 and 2251 - in the amount of 15% of the exceeding of the estimated income compared to the gross income registered in the accounting by the economic agent.

Value Added Tax (hereinafter - VAT) - is a state tax that is a form of collection from the budget of part of the value of goods delivered, services provided that are subject to taxation on the territory of the Republic of Moldova, as well as part of the valuable goods, taxable services imported into the Republic of Moldova

In the Republic of Moldova, it is not obligatory to pay VAT, it is required to pay only in case of some type of services. The established VAT quotas are the following:

a) Standard quota - in the amount of 20% of the taxable value of imported goods and services and deliveries made on the territory of the Republic of Moldova

b) Reduced quotas in the amount of:

- 8% - for bread and bakery products;

- 8% - for medicinal products;

- 8% - for goods, imported and / or delivered on the territory of the Republic of Moldova;

- 8% - for natural gas and liquefied gas from tariff item 2711, both for imported and delivered to the territory of the Republic of Moldova, as well as for natural gas transmission and distribution services;

- 8% - for sugar beet sugar, produced, imported and / or delivered on the territory of the Republic of Moldova;

- 8% - for solid biofuel intended for the production of electricity, heat and hot water delivered on the territory of the Republic of Moldova;

- 15% - for accommodation services;

-15% - for foodstuffs and /or beverages, excluding alcoholic preparations, prepared or unprepared, for human consumption.

For 2020, the Income Tax Rate does not change, it remains 12% of the taxable income.

The Share of the Social Insurance Contribution (Social Fund) also does not change and remains to be:

- 18%, for employers of the private sector, higher education institutions, and medical institutions

- 23%, for employers of budgetary authorities/institutions and public authorities/institutions for self-management, except for higher education institutions and medical institutions

- 26%, for private sector employers, higher education institutions and medical institutions (persons working in special working conditions of annex no.6)

- 33%, for employers of budgetary authorities/institutions and public authorities/institutions for self-management, except for higher education institutions and medical institutions (persons working in special working conditions of annex no.6)

For more detailed information feel free to contact us (Koluman Law Chisinau), we will be glad to help you.