Depreciation of fixed assets for tax purposes - the possibility to use the old method was extended for 2020

Depreciation of fixed assets for tax purposes - the possibility to use the old method was extended for 2020

• 27.12.2020

On 22 December 2020 Law No. 257 (the “Law 257”) for the modification of some legislation was published in the Official Journal of Moldova.

Consequently, some measures have been approved with regards to fiscal depreciation of fixed assets:

-For the 2020 tax period, economic agents can choose the computation method of depreciation and expenses for repair of the property according to the provision of the Fiscal Code. The choice of the fiscal regime should be indicated in the company’s accounting policy.

Please be reminded that, starting with 2018, the Moldovan Fiscal Code has been amended with regards to the fiscal depreciation of fixed assets and a new computation method of fixed assets depreciation for tax purposes has been introduced – the linear method. Therefore, the classification of fixed assets based on property categories has been excluded, the depreciation being necessary to be computed for each object separately, using the linear method.

Please access the attached PDF in ENG/RO for more detailed information.

KPMG Moldova

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. KPMG operates in more than 155 countries and has over 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. In Romania, KPMG was founded in 1994 and now operates from six offices, in Bucharest, Timisoara, Cluj Napoca, Iasi, Constanta and in Chisinau (the Republic of Moldova) since 1997. The practice has more than 800 staff, including 18 Partners, both Romanian and expatriates from the Canada, France, Israel, Sweden etc.