Global Daily Tax News, Moldova Introduces Various Tax Regime Changes, (Jan 22, 2024)

Moldova's tax agency recently confirmed the entry into effect of various tax reform measures, included in Law no. 212/2023.

The law included a cut to the value-added tax rate for the hospitality industry from 12 percent to 8 percent, effective from December 31, 2023.

Also in the area of value-added tax, the legislation provided for a deadline to issue electronic invoices for deliveries of goods paid by business payment card by the 10th day of the month following the month in which the delivery took place.

The legislation also set the rate of withholding tax on interest paid to resident natural persons, including from state securities, at six percent.

Other pertinent provisions in the law include new rules regarding the timelines for resolving tax disputes with taxpayers, including establishing a 30-day deadline for taxpayers to raise issue with a decision made by the State Fiscal Service.

The legislation also includes a new tax regime for the trade in scrap metals and amends the rates that apply to luxury vehicle imports.

The law provides for personal income tax deductions for spending on medical insurance and mortgage interest payments.

Further, the law clarifies the income tax reliefs available for enterprises established in economic zones. The legislation confirms that free zone companies may benefit from a halved rate of income tax for income earned from supplies made to other freezone companies for the purposes of exports. Otherwise a rate equal to 75 percent of the standard corporate tax rate will apply.

Further, the law provides that freezone companies can benefit from corporate tax holidays depending on the scale of their investments in fixed assets or infrastructure, of one, three, or five years, for investments of at least USD1m, at least USD3m, or at least USD5m, respectively.