PwC Moldova: Tax and Legal Alert no.9 - Approval of the Unified Tax Return for Payroll Taxes

PwC Moldova: Tax and Legal Alert no.9 - Approval of the Unified Tax Return for Payroll Taxes

• 13.11.2017

In brief

The Ministry of Finance of the Republic of Moldova recently approved the Tax return on withholding tax, health insurance contributions and calculated social security contributions (Form IPC18), as well as the instructions for its filing.

In detail

As of 1 January 2018, Taxpayers will report withholding tax, social security contributions and health insurance contributions using a new tax return. Form IPC18 will replace the following tax returns: IRV14, MED08, BASS, REV5 and Form 2-03/l.

The tax return will have to be submitted monthly to the State Tax Service by the twenty-fifth day of the month following the reporting month. The first reporting period using the IPC18 tax return is January 2018. Adjusted tax returns, as well as the primary tax returns presented later for the previous periods (up to December 2017) will be prepared using the forms available for that period.

Residents of IT parks will apply specific rules when completing the IPC18 form. The approval of Form IPC 18 leads to the following essential amendments:

- Income exempted from the preliminary withholding of income tax has to be declared;
- Payments made to the benefit of individuals (with some exceptions) for selling goods through consignment trade will have to be reported separately;
- New codes have been introduced for nonresident taxable income in the form of royalties, interest and capital gains.

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PricewaterhouseCoopers (PwC) Moldova

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, tax and advisory services. This network structure provides PwC member firms with the flexibility to operate simultaneously as local businesses, but also on a global scale, creating a platform through which member firms share knowledge, skills and resources and delivery services of consistently high quality to international and local clients. PwC started operations in Moldova in 1996. It has continuously expanded the scope of its services and currently offers a full range of professional services to both international and Moldovan enterprises. Overseen by 16 partners and employing over 600 specialists and support staff, PwC operates in Romania and Moldova from a network of four offices in Bucharest, Timisoara, Cluj-Napoca, Constanta and Chisinau.