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Tax Guide Moldova

Tax Guide Moldova

Personal Income Taxation in Moldova

For individuals that reside in Moldova, income that has been sourced from within Moldova, as well as income earned as a result of activities performed within Moldova, in a fiscal year span are used for computation of Personal Income Taxation.

Moldovan citizens that receive their investments as well as financial income from sources located outside Moldova are also supposed to pay tax on this particular income in Moldova.

On the contrary, individuals that qualify as non-residents in Moldova, income that has been earned or sourced from within Moldova is used to calculate personal income taxation. Income that has been received from property based in Moldova, as well as remuneration for activities that are performed in Moldova is also included in calculation for taxable income for Personal Income Tax purposes. This also includes interest and royalties that are received from Moldovan legal entities.

Personal Income Tax Rates in Moldova

Under the Personal Income Tax regime in Moldova, the following rates are applicable:

  • For residents (Standard Taxation)
    • Income that is sourced as a result of employment: PIT is levied at a rate of 12%.
    • Capital Gains: PIT is levied at a rate of 12%.
    • Other taxable income: PIT is levied at a rate of 12%.
    • Sole proprietors (or individual entrepreneurs): PIT is levied at a rate of 12%.
    • Income for farming enterprises: PIT is levied at a rate of 7%.
  • For residents (Final Taxation)
    • Dividends (other than between 2008 and 2011 profit distribution): PIT is levied at a rate of 6%.
    • Dividends (between 2008 and 2011 profit distribution): PIT is levied at a rate of 15%.
    • Gambling Income: PIT is levied at a rate of 12%.
    • Income from specific chemical supplies (including pyrotechnical, horticultural, and zoo technical products): PIT is levied at rate of 6%.
  • For non-residents:
    • Income earned from employment: PIT is levied at a rate of 12%.
    • Dividends (other than between 2008 and 2011 profit distribution): PIT is levied at a rate of 6%.
    • Dividends (between 2008 and 2011 profit distribution): PIT is levied at a rate of 15%.
    • Other Income Types: PIT is levied at a rate of 12%.

Corporate Income Taxation in Moldova

Resident companies in Moldova are supposed to pay taxes on worldwide income. On the other hand, Permanent Establishment (PEs) are supposed to require their taxable income base for income that has been sourced in Moldova.

Corporate Income Tax in Moldova

The Corporate Income Tax rate in Moldova is applied at a rate of 12%. This is applied using indirect methods. However, in the case where this amount is reassessed, CIT in that case is applied at a rate of 15%.

On the other hand, individual entrepreneurs are also subject to a rate of 12% of the total income.

In the same manner, farmers and agricultural related enterprises are also subject to CIT at a rate of 7%.

Small and medium enterprises that are not mostly registered as VAT are supposed to pay CIT at a rate of 4% on the aggregated income. This is the income that is determined for accounting purposes.

Other Taxation in Moldova

  • Value Added Tax: VAT is applied as a consumption tax in Moldova. It is levied at a rate of 20%. It is applied across all locally supplied goods and services. Other than this, it is also applied on imported goods and services through a reverse-change mechanism.
  • Custom Duties: Custom Duties are implied in the form procedural taxes, custom taxes, VAT, as well as excise duties. It is applied across different goods and services, depending on the category of goods and services in place.
  • Excise Duties: Excise Duties are also in place, levied on imported cars, tobacco, as well as alcohol. They are mostly liable to be paid on the 25th of every month, after the dispatch of excisable goods from the tax related warehouse.
  • Tax on immovable property: Tax on immovable property is also levied as a local tax paid on real estate. It is levied at a rate of 0.3% on immovable property.
  • Transfer Taxes: Transfer duties and transfer taxes are applied across various different property types, including private property. They are applied at various rates, depending on the underlying value of property.
  • Payroll Taxes: Payroll Taxes are applied at a rate of 12% on income that has been generated from employment. It also includes benefits in kind that are paid out to the employees.
  • Social Security Contributions: Social Security Contributions are imposed at a rate of 24%. They are fully paid by the employer. This includes both, the contribution by the employee, as well as the employer.
  • Taxes on Natural Resources: Under this particular tax regime, tax is levied on natural resources, that include tax on water, tax on mineral exploration, as well as tax for usage of underground areas.
  • Environmental Tax: Entities are also supposed to bear environmental tax against environmental pollution caused by their activities.

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