Important to Know - Fiscal & Customs Policy 2020 Presented to the Business Community

Important to Know - Fiscal & Customs Policy 2020 Presented to the Business Community

• 01.11.2019

At the end of last week, the Ministry of Finance of the Republic of Moldova presented to the business community the elements of fiscal and customs policy for the following 2 periods.

The policy contained series of proposed changes to be implemented from January 2020; and further section that is proposed to be developed and implemented in the medium term.

Several of the proposals can be defined as "pro-growth" measures, and we welcome their implementation. A selection of them are:
- Deduction of payments (related to employees) from which wage taxes were withheld;
- Increase of the ceiling for the depreciation of cars;
- Changing the taxation of donations;
- Repayment of the tax for environmental pollution;
- Cancellation of the general electronic register of tax invoices, etc.

A few of these measures are cause for concern, especially those related to "fiscal equity":
- Social contributions for organized food;
- Reverse taxation for deliveries of pledged goods, etc.

Some of the measures proposed in the medium term are as follows:
- Simplified tax regime for small businesses;
- Applying VAT at the collection of the payment;
- VAT for agricultural production; taxation of postal parcels, etc.

Discussions about the proposals will continue in technical working groups on various narrower areas, such as: finance, organized food and meal tickets, local taxes, VAT for agricultural production, customs policy objectives, etc.