Tax rates in Moldova

Company Tax

12%

Tax Rate For Foreign Companies

Resident companies are taxed on their worldwide income, non-resident companies only on the Moldova-sourced income of their permanent establishment.
A company is deemed to be tax resident in Moldova if it is organised or managed in the country or if it has its main place of business in Moldova.

Capital Gains Taxation

Capital gains of companies are taxed as ordinary income. Until 2020, only 20% of the gain was taxable.

Main Allowable Deductions and Tax Credits

Ordinary and necessary expenses aimed at deriving taxable income are generally tax-deductible, provided that they are duly documented (not adequately documented expenses are deductible from taxable income up to 0.2%).
Under certain conditions and limits, deductions are possible for: depreciation; amortisation; research and development expenses; business trip expenses; waste, spoilage and expiration expenses; bad debts; charity and sponsorship expenses (up to 5% of taxable income; except for donations made to contain the COVID-19 epidemic, which are fully deductible); interests expenses (provided such expenses are deemed as ordinary and necessary for carrying out the business activity); taxes (excluding corporate income tax). Expenses incurred in relation to benefits in kind granted to employees that have been subject to all payroll taxes are also deductible.
Payments performed by the employers in relation to testing of the employees for COVID-19 are fully deductible for CIT purposes. Membership fees paid for the benefit of foundations or other business associations can be deducted up to 0.15% from the remuneration fund.
Fiscal losses can be carried forward for five consecutive years following the year the losses were incurred, but they may not be carried back.

Other Corporate Taxes

Other taxes on companies include:
- Real property tax (for immovable property used for entrepreneurial activity the rate of 0.3% is applied either on the property's estimated value or on its book value; the rate is 0.1% for agricultural properties)
- Social security contributions: 18% of the employee's salary, plus 6% to the pension fund (certain categories of taxpayers are subject to a fixed rate of MDL 11,331 applicable for 2021)
- Stamp duties
- Transfer tax: charged upon notary authentication of transactions related to the transfer of property (between 0.1% and 1% of the value of the transaction)
- Payroll taxes
- Various road taxes
- Local taxes and duties (advertising, land improvements, hotel room occupancy, parking tax, etc.).

Other Domestic Resources

State Tax Service of the Republic of Moldova

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

Individuals can enjoy an annual personal allowance of MDL 25,200 for the year 2021, together with a spouse's exemption of MDL 18,900. Furthermore, an annual allowance of MDL 4,500 is applied for every dependant (MDL 18,900 for dependants with severe disabilities since childhood). In general, individuals with a taxable income above MDL 360,000 are not entitled to use the personal allowance.
Mandatory social security and health insurance contributions are deductible for personal income taxation purposes.
Individuals registered as private entrepreneur or farming enterprise can enjoy the same deductions provided for corporations.

Special Expatriate Tax Regime

Residents are taxed on their income sourced in Moldova and on foreign income received for their work activity effectively performed in the Republic of Moldova.
Non-residents are taxed on their Moldova-source income, generally at the same rates as residents.