PwC Moldova: Amendments to Tax Legislation and Other Normative Acts

PwC Moldova: Amendments to Tax Legislation and Other Normative Acts

• 11.12.2018

We are pleased to provide you with our latest Tax and Legal Alert in English and Romanian language.

Our Tax and Legal Alerts, Newsletters and the English version of our Investing Guide to Moldova are also available on our website: www.pwc.com/md.

In brief

Laws significantly amending tax legislation and other normative acts have been published.

In detail

Income tax 
Interest on loans granted by banks to their employees under standard market conditions will not be a taxable benefit.  As of 1 January 2019, repair expenses for own transport used for providing transportation services under a taxi regime are fully deductible. Special rules for determining the personal income tax for 2018 tax year also apply to non-resident individuals (for income provided under art. 71 para (1), c), d), n) and o) of the Tax Code). 

Value added tax (VAT) 
The method of application has been amended for the 10% VAT rate on accommodation services, food and beverages (with some exceptions) provided by entities performing accommodation and / or catering activities according to section I of the Nomenclature of the Economic Activities of Moldova.
As of 1 July 2019, entities subject to VAT are obliged to issue electronic tax invoices (efactura) to their cust0mers for local taxable supplies made under public acquisitions. Exceptions apply for supplies of electrical and thermal energy, natural gas, electronic communication services and utilities.

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.