By its nature, the fiscal system of the Republic of Moldova is progressive. There are two types of taxes and duties levied in this country according to the institutions in charge with their collection and management: general state (central) taxes and duties, and local taxes and duties.
There are 51 operational Tax Treaties for Avoidance of Double Taxation concluded by Moldova with other jurisdictions. Although Moldova is not a member of the Economic Cooperation and Development Organization (OECD), Moldova applies OECD rules in interpreting Double Taxation Treaties.
These are the main central payments:
- income tax is 12% for legal entities and 12% for individuals; however in the case of legal entities this tax may be lower if we consider a farmer- 7%, a resident of the Free Economic Zone - 6%, or a resident of the Giurgiulești International Port - 3%;
- value-added tax is different: the standard rate is 20%, but for HORECA it is 8%, for pharmaceuticals and agrifood it is 8%, for natural gases 8%, and for international transportation 0%;
- excises vary between 0.5% and 5%, depending on the tariff position of a given product;
- customs duty may be as high as 30%, although there are plenty of exemptions and preferences;
- road duty, which depends on the engine’s capacity or the vehicle’s weight;
- wealth tax, which includes the land and real estate payments - up to 50% of profit;
- dividends amount to 6%.
Non-residents
The following WHT rates apply upon payments to non-residents:
- 6% for dividend payouts, except for dividends for the profits received between 2008 and 2011, for which the WHT rate is 15%.
- 15% from the amount withdrawn from the share capital related to the increase arisen from the distribution of net profit and/or other sources identified as equity among shareholders (associates) throughout the 2010 to 2011 fiscal period, in accordance with the share capital venture quota.
- 12% for other revenues.
The Free Economic Zones (FEZ) represent excellent platforms that are convenient to export-oriented manufacturing companies, which intend to benefit from a preferential customs and tax regime.
There are 6 FEZ in Moldova, spread throughout the country and located either near a border, or in big cities. These FEZ offer preferential conditions and a dedicated customer-oriented administration.
Activities in the FEZ are limited to industrial production, packaging, trade, transportation, logistics and utilities, with priority given to manufacturing. Moreover, Giurgiulesti International Free Port and Marculesti Free Airport offer quite similar conditions to the FEZ.
Incentives in Free Economic Zone (FEZ)
0% CIT for a period 3 (5) years when investing at least 1 (5) million USD
0% VAT no Excise and Customs duties
10 YEARS State guarantee on legislation changes
24/7 Customs office on site
Road and utilities infrastructure
EU border green lane (AEO)
Dual vocational system
Ongoing professional support by FEZ Administration
0.15 - 3.5 euro/m² land sales price
EUR/USD payments among FEZ residents
Minimal state inspection and control regime
Investment incentives
Giurgiulești International Free Port
- Unrestricted right to practice any activity that is legal in Moldova;
- Reduced CIT rate of 3% net, for activities within PILG for 10 years of residence;
- Reduced CIT rate of 6% net, for next term till 2030;
- Customs duties exemption;
- VAT and excises exemption for shipments to GIFP and between GIFP residents;
- guarantee of applicability of tax and customs regime existing at inception of activity, till 2030.
Virtual Park incentives for IT, R&D and Engineering
The Law on IT Parks (77/2016) regulates the creation and functioning of information and technological parks and came into force on 01.01.2017. The major incentives provided to domestic and foreign investors – residents of IT parks – are the following:
7% fat tax on turnover - which is to replace: Corporate Income Tax (CIT); Personal Income Tax (PIT); social security and medical insurance taxes due by employers and employees; local and real estate taxes; road tax.
IT Visa - can be obtained through a simplified process, as an additional benefit to the IT Park residents. The work and residence permit can be issued for up to 4 years for Managers, and up to 2 years for IT Specialists, both with the possibility of extension.
Virtuality - residents companies may carry out their activity anywhere on Moldova territory. No physical presence required in the IT Park.
Simplicity - or a simplified tax compliance calculated on a monthly basis given the income recorded during the reporting month, without considering the cumulative data recorded since the beginning of the calendar year. The residents must carry out an annual verification by an audit company accredited on the territory of the Republic of Moldova. Given the single payment, there is a reduced time and staff needed for accounting purposes and there is a reduced risk of committing errors in calculation. This in turn leads to a significantly reduced risk of sanctioning by inspection authorities.
Distribution of single tax among budgets
0,4%
- Local tax
- Real estate tax
29,5%
- Corporate income tax
- Personal income tax
- Road tax
15,4%
- Medical insurance
- (employee & employer)
54,7%
- Social security**
(employee & employer)
*7% of revenue, but not less than 30% of an average salary in the economy, multiplied by the number of employees (EUR ~ 588 x 0.3 = EUR ~ 176, as of 2023). The single tax does not cover tax on dividends, VAT, excise taxes.
** All IT Park employees benefit from social security coverage limited to 2/3 of an average salary in the economy (EUR ~ 588 x 2/3= EUR ~ 392, as of 2023).
Industrial Parks
Industrial parks (IP) are delimited territories in which industrial production, services provision, applied scientific research and/or technological development are carried out under some preferences. There are 10 Industrial Parks in Moldova: IP Tracom (Chisinau), IP Bioenergagro (Drochia), IP Cimislia (Cimislia), IP Raut (Balti), IP CAAN (Straseni), IP Edinet (Edinet), IP Triveneta Cavi Development (Straseni), IP Comrat (Comrat), IP „FAIP” (Durlești), IP „Cahul”.
Incentives in Industrial Parks
INDUSTRIAL PARK "EDINEȚ"
INDUSTRIAL PARK "CIMIȘLIA"
INDUSTRIAL PARK "FAIP"
INDUSTRIAL PARK "RĂUT"
INDUSTRIAL PARK "TRACOM"
INDUSTRIAL PARK "CAAN"
INDUSTRIAL PARK "LA TRIVINETA CAVI"
INDUSTRIAL PARK "COMRAT"
INDUSTRIAL PARK "CAHUL"
- Free re-zoning of agricultural into industrial land;
- Normative (below market) prices for the purchased land;
- Reduced rental price for state land;
- Free connection to existing infrastructure in the park;
- Minimal state inspection and control regime.
To showcase existing location opportunities, the Government has created a detailed interactive map that includes 50 potential locations for investors. The interactive map can be accessed at: https://www.iplatforms.gov.md/en.