Moldova's corporate taxation system includes various direct and indirect taxes, with CIT and VAT being the most significant taxes for companies operating in the country. Understanding the various tax rates, tax brackets, and legislation is crucial for corporations doing business in Moldova.
Corporate Income Tax
Corporate Income Tax (CIT) in Moldova is a direct tax levied on the net income of companies operating in the country. The Tax Code of the Republic of Moldova (Codul fiscal al Republicii Moldova), along with subsequent amendments, governs corporate income tax in Moldova.
Domestic Companies:
Domestic companies in Moldova are taxed on their worldwide income. As of 2021, the standard CIT rate is 12%.
Foreign Companies:
Foreign companies with a permanent establishment in Moldova are subject to CIT only on the income attributable to the Moldovan permanent establishment. The standard CIT rate of 12% applies.
Value Added Tax (VAT)
VAT (Taxa pe valoarea adăugată) is an indirect tax in Moldova, applicable to the sale of goods and services. The Tax Code of the Republic of Moldova governs VAT in the country. VAT is levied on every stage of the supply chain, from production to consumption. There are two VAT rates in Moldova:
- Standard rate: 20% (applied to most goods and services)
- Reduced rate: 8% (applied to specific goods and services, such as bread, dairy products, and medicines)
Sales Tax
Moldova does not impose a separate sales tax, as the VAT system covers the taxation of goods and services.
Import Duties
Import duties in Moldova are levied on goods imported from non-EU countries. Moldova has a preferential trade regime with the European Union under the Association Agreement, which eliminates import duties on most goods originating from the EU. Import duties vary depending on the product and its classification under the Harmonized System (HS) code. Rates can range from 0% to 15% or higher, depending on the type of goods. In addition to import duties, imported goods are also subject to VAT.
Export Duties
Moldova generally does not impose export duties, except in specific cases, such as the export of certain raw materials or waste products. The export of goods to EU countries is generally duty-free due to the preferential trade regime established by the Association Agreement.
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