PwC Moldova: Tax and Legal Alert no. 9

PwC Moldova: Tax and Legal Alert no. 9

• 20.07.2016

Amended rules on dormant entrepreneurs

The concept of “dormant legal entity” has been amended. It now means that an entity, within 12 months as of registration or during the last three years, meets the following cumulative criteria: 

- Has not filed the tax return forms as provided by law;
- Has not carried out operations through any bank account;
- Is not a founder of another legal entity and has not established any subsidiaries nor representative offices;
- Has no debts to the national state budget;
- Has not registered as a VAT taxpayer; and 
- Has not registered cash registers with fiscal memory with the State Tax Service.

The concept of “dormant individual entrepreneur” has been introduced. Lack of cash registers with fiscal memory has been introduced as one of the cumulative criteria for default removal of a dormant legal entity / dormant individual entrepreneur from the State register. Default removal also applies to legal entities which / individual entrepreneurs who filed for removal to the state registration authority and meet the criteria of dormant legal entity / dormant individual entrepreneur. It does not apply if the tax return forms confirming development of business activity have been filed as required by law. 

The Main State Tax Inspectorate is required to submit quarterly to the state registration authority information about dormant legal entities / dormant individual entrepreneurs. Such information is used in taking decisions on their removal 
from the State register. [Source: Law no. 138 dated 17 June 2016 amending and supplementing certain legislative acts, Official Gazette 184 – 192 (5617 - 5625) dated 1 July 2016]. 

The takeaway

The concept of “dormant legal entity” has been amended and the concept of “dormant individual entrepreneur” has been introduced. Lack of cash registers with fiscal memory has been introduced as one of the cumulative criteria for default removal from the State register. The amendments entered into force on 1 July 2016

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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.