TAX LEGISLATION HARMONIZATION WITH EU NORMS DEMANDS INTRODUCTION OF NEW TAXES – EXPERTS

For bringing the Moldovan fiscal legislation in line with European Union norms, the country authorities will have to introduce new taxes in future, maintain experts to Infotag.

“Currently, the Republic of Moldova’s tax legislation implies a whole range of tax incentives and exemptions for both physical persons and legal persons, which is not practiced in EU countries”, experts say, alluding that the fulfillment by Moldova of EU directives in accordance with the EU-Moldova Association Agreement will demand to exclude these.

Asked about which tax incentives they are talking, they cited the tax incentive at VAT payment at buying cars and housing.

As for the VAT, periodicals in Moldova are exempted from this tax and are just paying it in the size of 20% from the volume of advertising services and the paper, bought for printing.

Comparing the size of tax burden in Moldova with other countries of the region, in particular Romania, tax experts say that this burden is not big both for economic agents and for individuals. For example, the tax burden on a worker in Romania is 15% higher than in Moldova.

Participants in the seminar of the companies “Taxaco Moldova” and “Mazars Romania” in partnership with the Association of Professional Accountants and Auditors (ACAP), about which the “Logos-press” Economic Review is writing on Friday, discussed the harmonization of tax legislations of Chisinau and Bucharest.

“Professional communities of the two countries are discussing the idea that all the taxes on worker salary (income tax – 12%, social tax – 7%, medical insurance – 4.5%), as well as the taxes the employer is paying from the worker’s salary, to be shouldered to the worker”, the publication writes, citing expert opinion, according to which the workers’ salaries should grow.

The newspaper writes that such a provision is functioning in Romania since the beginning of 2018 and demonstrates positive trends.

Infotag’s dossier: The draft law on Moldova tax budget 2019 implies the growth of the average salary in real sector of economy to 6975 lei (US$410) from 6200 lei.