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Important to Know - Fiscal & Customs Policy 2020 Presented to the Business Community

November 1

At the end of last week, the Ministry of Finance of the Republic of Moldova presented to the business community the elements of fiscal and customs policy for the following 2 periods.

The policy contained series of proposed changes to be implemented from January 2020; and further section that is proposed to be developed and implemented in the medium term.

Several of the proposals can be defined as "pro-growth" measures, and we welcome their implementation. A selection of them are:
- Deduction of payments (related to employees) from which wage taxes were withheld;
- Increase of the ceiling for the depreciation of cars;
- Changing the taxation of donations;
- Repayment of the tax for environmental pollution;
- Cancellation of the general electronic register of tax invoices, etc.

A few of these measures are cause for concern, especially those related to "fiscal equity":
- Social contributions for organized food;
- Reverse taxation for deliveries of pledged goods, etc.

Some of the measures proposed in the medium term are as follows:
- Simplified tax regime for small businesses;
- Applying VAT at the collection of the payment;
- VAT for agricultural production; taxation of postal parcels, etc.

Discussions about the proposals will continue in technical working groups on various narrower areas, such as: finance, organized food and meal tickets, local taxes, VAT for agricultural production, customs policy objectives, etc.


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