Accounting Outsourcing and
Tax compliance in Moldova

Moldova – Accounting Outsourcing and Tax Compliance

Global Expansion Plus provides accounting outsourcing and tax compliance in Moldova. We provide services with the support of our local accountants and tax specialists. We will perform bookkeeping, accounting, and filing a tax return on your behalf bearing all associated compliance risks. Every state will put in place a tax system to raise revenue. Moldova is no different. Whether a resident or a non-resident, individual, or corporate, there is the need to understand taxation in Moldova. Otherwise, you are bound to get on the wrong side of the law.

Moldova in facts

  • Location: Eastern Europe
  • Territory: 33,846 square kilometers
  • Capital: Chișinău
  • Official language: Romanian
  • Currency: Leu (MDL)
  • Population: 2,68 million

Corporate income tax (CIT) in Moldova

A standard Moldavian CIT rate is at 12%. But the Moldavian Tax Office may recalculate the revenue earned by the company by making some indirect analytical tests if, during this assessment, an extra income is identified. This extra is taxed by 15%.

Sole entrepreneurs pay 12% of corporate income tax on their turnover.

Agro-companies are paying 7% of corporate income tax.

If a company qualifies as small and medium-size and have not registered as a VAT payer may pay just 4% of corporate income tax on total income.

Value-added Tax (VAT) in Moldova

The normal Moldavian VAT irate is 20%. Moldova uses a standard VAT system that is applied in the European Union. VAT is applied to locally produced and sold goods and services and import of the goods to Moldova.
Some industries and products are subject to the reduced VAT of 8% as a stimulus for growth and. Those products are the followings:
  • Bread and bakery, locally produced;
  • Dairy products including milk;
  • Services related to transport and distribution of gas;
  • Biofuel;
  • Other products specified by the Tax code of Moldova;
The Moldavian Tax system also provides an incentive to the hospitality and catering businesses by giving a reduced 10% VAT rate for:
  • Hotels and other hospitality service providers;
  • Catering businesses;
  • Food and beverages supplier for hospitality business;
Export operations are VAT exempt as well as international transportation.

Personal Income tax (PIT) in Moldova

Moldavian tax code provides the following rated for personal income tax:
  • Salaries and wages are taxed at 12%;
  • Sole entrepreneurs and professional are taxed at 12%;
  • Farmers are taxed at a decreased rate of 7%;
Moldavian Tax Authorities are applying an income estimation methodology. The estimation is based on several analytical tests applied to the business. If the difference between the declared and estimated income is MDL 300,000, the estimated revenue being the more considerable value, the tax base for PIT is the estimated amount, not the declared one.

Withholding Tax (WHT) in Moldova

Moldavian Tax office applies the different withholding taxes depending on the nature of the operation:
  • Rent of property, leasing operations are subject to the 10% withholding tax at a source;
  • Dividend paid to a physical person are subject to 6% of withholding tax, dividends paid to legal entities are not subject to withholding tax.
  • Royalty payments are taxed at a 12% withholding tax at a source;
  • If an induvial is winning from some advertisement complaint, the withholding tax is 12% of the value of the monetary or non-monetary item exceeding MDL 24,000;
  • All gamboling earnings are taxed at 12% while lottery and sports betting are not taxed and not considered gambling.

Payroll-Related Taxation in Moldova

The personal income tax that is paid by employees from their salaries and wages is 12%. The tax base also includes all benefits that are provided by the employer—for example, food allowances, gym membership, apartments. At the same time, the tax base may be decreased by the allowances.
The deductible allowances are applied annual are the followings:
  • The personal allowance is the amount of MDL 24,000;
  • Allowance for the spouse that is not working, the amount is 11,280;
  • Personal allowance under special conditions in the amount of MDL 30,000;
  • Allowance for dependent children or elderly in the amount of MLD 3,000;
Under the Moldavian tax code, all payroll taxed is included in the monthly return submitted on the 25th of each month.

Social Security Contributions (SSC)

The standard social contribution paid by the employer is 18%. SSC is paid on a gross salary. Employees are paying their portion is the amount of 6% of their gross salaries. Sole entrepreneurs are paying a fixed amount of MDL 10,740 in the year 2020.

Health insurance contributions

Employers are contributing to the Medical Insurance Fund for 4,5%. Individual entrepreneurs are paying a fixed amount of MDL 4,056 in the year 2020.

Import/ Export related taxation in Moldova

Custom duty

Goods entering Moldova are subject to the customs duties, payments of custom clearance, VAT, and other payment. Customs duties are set for every type of product.

Excise taxes

Moldavian tax code specifies an excise tax for products like automobiles, tobacco and related products, alcohols, gasoline, and other goods. Excise duty is a percentage applied to the estimated value of the goods entering Moldova.
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