PREMIER CHICU SAYS THAT IN 2021 MOLDOVA WILL CANCEL DOUBLE TAXATION OF DIVIDENDS

In 2021, Moldova will cancel the double taxation of dividends, Prime Minister Ion Chicu announced to journalists on Monday morning, following his weekly meeting with President Igor Dodon and Parliament Speaker Zinaida Greceanii.

Chicu said that the draft of the country’s 2021 fiscal policy cancels the previous practice of charging a double tax on dividends. In the nearest future, the draft policy document will be sent to parliament for considerable and approval so as to let businesses plan their 2021 work beforehand.

Until presently, at distributing dividends by economic agents, they have to pay a 12% income tax. In cases of repaying dividends to shareholders and company founders, the dividend sum is subjected to the tax on dividends in the amount of 6%.

The Head of Government also said that the value-added tax in the farm sector will be lowered next year, which step should create a whole range of tax advantages to economic entities working in that sector.

The Government is also proposing to cancel from 2021 the collection of the highway-user tax currently paid annually by motor vehicle owners, and to use “a more fair taxation method” – to include this tax into the fuel cost, which should be particularly advantageous for motorists driving not very much.