PwC Moldova: Tax and Legal Alert no. 10

PwC Moldova: Tax and Legal Alert no. 10

• 02.08.2016

Approval of the laws on compulsory health insurance funds and state social security for 2016

The Parliament of the Republic of Moldova has recently approved the Law on compulsory health insurance funds for 2016 (“Law on CHIF 2016”) and the Law on state social security budget for 2016 (“Law on SSSB 2016”).

Compulsory health insurance

According to the new law, the contribution percentage rates for labour remuneration fund and other forms of remuneration have been maintained at 9% (i.e. 4.5% for employees and 4.5% for employers). The annual fixed amount
contribution of MDL 4,056 has been also maintained. 

State social security 

The social security contribution (SSC) rates applied on salaries and other forms of remuneration have been maintained at 6% for employees and 23% for employers. The SSC rates applicable by employers in the agriculture sector and companies whose core business is software development have also been maintained. The annual fixed SSC has been increased from MDL 6,372 to MDL 7,032. Payers which on 1 January 2016 had at least five individuals employed under labour agreements and / or were providing services, are obliged to submit the BASS and REV5 reports by using the automated electronic reporting method, while using the electronic signature. The list of rights and income exempted for SSC purposes has been completed with the following elements: 

- Expenses incurred by employers for professional studies/ professional training of employees;
- Income obtained by entrepreneurship patent holders as a result of work performed or services provided. For the period from the date of submitting documents for transferring the amounts from the state social security budget account to another budget account until the date of actual transfer, no late-interest penalties for SSC will be calculated for the payers.

[Source: Law on compulsory health insurance funds for 2016 no. 157 dated 1 July 2016, Official Gazette no. 215-216 (5648-5649) dated 19 July 2016; Law on state social security budget for 2016 no. 156 dated 1 July 2016, Official Gazette no. 230-231 (5663-5664) dated 26 July 2016]. 

The takeaway

Through the law on CHIF for 2016, the compulsory health insurance rates have been maintained for employers and employees. According to the law on SSSB for 2016, the percentage rates for mandatory SSC have been maintained. The list of rights and income from which SSC is not calculated has been adjusted. Moreover, new provisions on the submission of declarations and application of late-payment interest have been approved. The Law on CHIF entered into force as of 19 July 2016, with the Law on SSSB coming into force as of 26 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.