Moldova

Turcan Cazac

"The leading law practice in the country"
"Very professional, very efficient and very knowledgeable"

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Moldova Moldova Moldova Moldova Moldova

Str. Puskin 47/1-5a

Chisinau

Tel: +373 (22) 212-031

Fax: +373 (22) 223-806

www.turcanlaw.md

MOLDOVA: TaX COMPASS 2011

Corporate income taxation
Corporate Tax 0% (2011)
12% (2012)
Dividend (participation exemption for tax residents) 0%
Capital gains ½ of the corporate
tax rate
Deduction of Interests
  • payable to banks and microfinance organizations
  • payable to other lenders

 
Fully deductible
Deductible within National Bank Base Rate set for November of previous fiscal year

Thin Capitalization Rule N/A
Depreciation
  • Five categories of assets
5/8/10/20/30%
Transfer Pricing Rules
 Concept expected to be introduced in 2014 		N/A
Loss carried forward
Loss carried backward
5 years
N/A
Fiscal unity/Tax consolidation N/A
Withholding taxation
Withholding tax rate for dividends

15 % (2011)
6 % (2012)
Interests, royalties 15%
Capital gains from real estate/real estate companies 15%
Double Tax Treaty Network (over 45 DTTs): reduction /elimination of WTH taxation  
Personal Income tax
General flat rate 7%/18%
Tax rate for Dividends 15% (2011)
6% (2012)
Inheritance tax N/A
Real Estate Transfer Taxes / Duty N/A
Value Added Tax
Standard rate    
20%
Reduced rate    0% / 6% / 8%
General VAT payer registration threshold – 12-month sales of MDL 600,000 (approx EUR 36,500)
Property taxation
Residential property 0.02 – 0.25 %
Other property 0.1 %
Severance Tax
On extracted minerals: gas, oil, metals, carbons etc.
Excises
On alcohol, tobacco, petroleum, autos, luxury items, other 
Social Security Contributions
Employer 23%
Employee 6%
mandatory medical insurance contribution
Employer 3.5%
Employee 3.5%
Incentives for Investors
General incentives for investors To be abolished in 2012 due to low (i.e. 12%) income tax rate
Incentives for residents of free economic zones:
  • export earnings (general)
  • export earnings (by those who invested more than $1M)
  • export earnings (by those who invested more than $5M)


6%
3-year income tax exemption
5-year income tax exemption
Special (simplified) tax regime
For small businesses / individual entrepreneurs		 N/A
Advance (binding) tax rulings N/A
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