INTERNATIONAL EXECUTIVE SERVICES
Moldova Taxation of International Executives TAX
Moldova: Taxation of International Executives
Overview and Introduction _____________________________________________2 Income Tax ___________________________________________________________3 Tax Returns and Compliance ___________________________________________3 Tax Rates ____________________________________________________________3 Residence Rules______________________________________________________3 Termination of Residence ______________________________________________4 Economic Employer Approach __________________________________________4 Types of Taxable Compensation ________________________________________4 Tax-Exempt Income ___________________________________________________5 Expatriate Concessions ________________________________________________8 Salary Earned from Working Abroad _____________________________________8 Taxation of Investment Income and Capital Gains _________________________8 Additional Capital Gains Tax (CGT) Issues and Exceptions __________________9 General Deductions from Income ______________________________________10 Tax Reimbursement Methods _________________________________________10 Calculation of Estimates/Prepayments/Withholding ______________________10 Relief for Foreign Taxes ______________________________________________10 General Tax Credits __________________________________________________11 Sample Tax Calculation _______________________________________________11 Special Considerations for Short-Term Assignments ____________________13 Residency Rules _____________________________________________________13 Payroll Considerations ________________________________________________13 Taxable Income______________________________________________________13 Additional Considerations _____________________________________________13 Other Taxes and Levies _______________________________________________14 Social Security Tax ___________________________________________________14 Gift, Wealth, Estate, and/or Inheritance Tax _____________________________14 Real Estate Tax ______________________________________________________14 Sales/VAT Tax _______________________________________________________14 Tax rates ___________________________________________________________14 Unemployment Tax __________________________________________________15 Other Taxes_________________________________________________________15 KPMG in Moldova ____________________________________________________18
Taxation of International Executives 1 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Overview and Introduction The Moldova (RM) has autonomous power in the area of taxation. In general, income is subject to taxation in the Moldova if it accrues in, or is derived from, the Moldova. For individuals residing in the Moldova, investment and financial income obtained abroad is also taxable. The official currency of Moldova is the Moldavian Lei (MDL). For information on practical matters that employers and employees should consider with respect to an international assignment, please refer to the companion publication titled Planning Your International Transfer, if available. For the purposes of this publication, the host country refers to the country where the expatriate is going on assignment. The home country refers to the country where the expatriate lives when he/she is not on assignment.
Taxation of International Executives 2 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Income Tax1 Tax Returns and Compliance When are tax returns due? That is, what is the tax return due date? The income tax is to be paid no later than the date of filing the tax declaration. After the end of the tax year, the annual tax declaration has to be filed no later than 31 March of the following tax year. What is the tax year-end? 31 December. What are the compliance requirements for tax returns in Moldova? Residents The annual income tax return shall be submitted to the tax authorities not later than 31 March of the year following the reporting tax year. The following persons should submit a tax return. z
z
z
z
Persons that have the obligation to pay tax. Persons that obtain income from source other than salary that exceeds MDL 8,100 per year. Persons that obtain income under form of salary that exceeds MDL 25,200 per year (except for persons receiving salary at one place of work). Persons that obtain income from salary and other sources, total amount of which exceeds MDL 25,200 per year.
Non-Residents Non-residents obtaining income subject to taxation in Moldova have to submit a report to the tax authorities within three days from termination of activity in Moldova. Tax Rates What are the current income tax rates for residents and non-residents in Moldova? Income tax is calculated by applying a progressive tax rate schedule to taxable income. Residents and Non-Residents
Taxable income bracket From MDL 0 25,201
To MDL 25,200 Over
Income tax table for 2009 Total tax on income below bracket MDL 1,764 0
Tax rate on income in bracket Percent 7 18
Residence Rules For the purposes of taxation, how is an individual defined as a resident of Moldova? A resident natural person is defined as an individual who permanently resides in the Moldova, except for temporary absences due to medical treatment, vacations, education, or business trips abroad. An individual is
1
All information is summarized by KPMG Moldova S.R.L., the Moldovan member firm of KPMG International, based on the Moldovan Income Tax Rates,
Taxation of International Executives 3 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
also considered to be a resident of Moldova if he/she resides in Moldova for an accumulated period of 183 days during the fiscal year. Is there, a de minimus number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host country for more than 10 days after their assignment is over and they repatriate. No. What if the assignee enters the country before their assignment begins? No tax implications, unless he/she accumulates more than 183 days of stay in Moldova and becomes a resident for tax purposes again. Termination of Residence Are there any tax compliance requirements when leaving Moldova? Tax clearance must be obtained on departure from the Moldova. What if the assignee comes back for a trip after residency has terminated? There are no tax implications. Communication between Immigration and Taxation Authorities Do the immigration authorities in Moldova provide information to the local taxation authorities regarding when a person enters or leaves Moldova? No. Filing Requirements Will an assignee have a filing requirement in the host country after they leave the country and repatriate? Yes. Economic Employer Approach2 Do the taxation authorities in Moldova adopt the economic employer approach to interpreting Article 15 of the OECD treaty? If no, are the taxation authorities in Moldova considering the adoption of this interpretation of economic employer in the future? No. Such interpretation of economic employer is not planned for the future. De minimus Number of Days3 Are there a de minimus number of days before the local taxation authorities will apply the economic employer approach? If yes, what is the de minimus number of days? No. Types of Taxable Compensation What categories are subject to income tax in general situations? As a rule, it can be stated that all types of compensation and benefits received by an employee for services rendered constitute a taxable income. These include, but are not limited to, the following. z
Cost-of-living allowances.
2
Certain tax authorities adopt an "economic employer" approach to interpreting Article 15 of the OECD model treaty which deals with the Dependent Services Article. In summary, this means that if an employee is assigned to work for an entity in the host country for a period of less than 183 days in the fiscal year (or, a calendar year of a 12-month period), the employee remains employed by the home country employer but the employee's salary and costs are recharged to the host entity, then the host country tax authority will treat the host entity as being the "economic employer" and therefore the employer for the purposes of interpreting Article 15. In this case, Article 15 relief would be denied and the employee would be subject to tax in the host country. 3 For example, an employee can be physically present in the country for up to 60 days before the tax authorities will apply the economic employer approach.
Taxation of International Executives 4 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
z
Housing allowances.
z
Housing provided by the employer on a non-arm’s length basis.
z
Reimbursement of foreign and/or home country taxes.
z
Private use of a company car.
z
Reimbursement of unsubstantiated moving expenses.
z
Reimbursements for home leave costs.
z
Children’s education fees.
z
Employer-provided domestic assistance.
z
Contributions to dental, sickness, and disability plans.
z
Interest-free or below-market rate loans provided by the employer in the part in which the market rate exceeds the actual rate.
z
Contributions to profit sharing plans and pension plans except for contributions to qualified pension funds.
z
Employee stock purchase plans/stock option plans.
Tax-Exempt Income Are there any areas of income that are exempt from taxation in Moldova? If so, please provide a general definition of these areas. The following types of income are tax-exempt. z
Social insurance annuities and insurance amounts and compensation received under insurance contracts, except for the ones received in case of forced conversion of property under tax code provisions.
z
Compensations paid for work accidents.
z
Compensations paid for work injury, sickness, and payments for disability.
z
z
z
Payments and other types of compensations provided in case of sickness or injury, or in other cases of temporary disablement, in accordance with health insurance contract. Reimbursement to the employees of the expenses related to execution of position. Scholarships received by scholars, undergraduate and graduate students and research fellows from state or private educational institutions and charity organizations, except to the extent that any amount represents payment for teaching or research services.
z
Alimony and child support payments.
z
Dismissal allowances established in accordance with the legislation.
z
Personalized compensations to low-income and socially vulnerable persons, also social insurance payments paid not in annuities.
z
Gifts and inheritances received by Moldavian nationals.
z
Benefits received from charity organizations.
z
Contributions to the share capital of a business entity as provided for by the Moldova tax code.
z
Income of foreign organizations, international organizations and their staff as provided for by tax code.
Taxation of International Executives 5 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
z
Amounts received by donors from state healthcare institutions.
z
Winnings from advertising campaigns not exceeding MDL 810 (approximately EUR 50).
z
z
z
One-off allowances or damage compensations paid to certain categories of state employees and their families. Material aid received by natural persons from reserve funds of the Government, local public authorities, republican and local fund of social support of the population, also from trade union funds. Financial aid received by sportsmen and coaches from the International Olympic Committee, also prizes received by sportsmen and coaches at international sport contests.
z
National award of the Moldova in literature, art, architecture, science and technique.
z
Income received by Administration of Free Enterprise Zone.
z
Payments to households for participation in selective polls made by statistics bodies.
z
Income of natural persons holding entrepreneurial patents.
z
Income of natural persons generated from collection of recyclable materials and from supply of agricultural products.
z
Income received in the result of using income tax reliefs.
z
Cash received from special funds.
z
Moral damage compensations.
z
Bank interest (until 1 January 2015).
z
Material damage compensations.
z
Payments received from the Fund of Guarantee of bank deposits.
z
Interest on state securities (until 1 January 2015).
Social Insurance Annuities and Insurance Amounts and Compensation Received Under Insurance Contracts Both social insurance allowances and insurance compensations are not subject to taxation in Moldova. Compensation Paid for Work Accidents Compensations payable in accordance with the labor legislation for work accidents are tax exempt. Compensation Paid for Work Injury, Sickness, and Disability Compensations payable in accordance with the labor legislation for work injuries or professional deceases and disability are tax exempt. Payments and Other Types of Compensations Provided in Case of Sickness or Injury, or in Other Cases of Temporary Disablement, in Accordance with Health Insurance Contract No taxation. Reimbursement of Expenses Related to Execution of Position Reimbursement of business expenses is tax exempt up to certain limits set out in law. Scholarships Scholarships received at any educational level, both from public or private institutions are tax exempt.
Taxation of International Executives 6 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Alimony and Child Support No taxation. Dismissal Allowances Dismissal allowances payable in accordance with the labor law are tax exempt. Personalized Compensations to Low-Income and Socially Vulnerable Persons Personalized compensations as well as social insurance payments other than annuities are tax exempt. Gifts and Inheritances Gifts and inheritances received by the citizens of the Moldova are tax exempt. Dividends Received Only dividends received for the tax years until 1 January 2008 by resident individuals not carrying on business activities from resident business entities are tax exempt. Benefits from Charity Organizations Benefits received from charity organizations in accordance with their Articles of Association are tax exempt. Contributions to a Share Capital of a Business Contributions to share capital made in accordance with the tax code are tax exempt. Income of Foreign Organizations, International Organizations and their Staff No taxation. Amounts from State Healthcare Institutions Amounts received by donors from healthcare institutions are tax exempt. Gambling Proceeds Taxable amount from 1 January 2008. Winnings from Advertising Campaigns Tax exempt, unless exceed MDL 810 (approximately EUR 50). One-Off Allowances or Damage Compensations This tax exemption applies to public sector employees and their families only. Material Aid This tax exemption applies only to aid received from the funds of the Government, local public authorities and trade-unions. Financial Aid from International Olympic Committee This tax exemption applies only to sportsmen. National Award of the Moldova in Literature/Art/Architecture/Science and Technique This tax exemption applies to those getting such awards, as well as to their teachers. Income from Administration of Free Enterprise Zone This tax exemption applies only to management of Free Enterprise Zones.
Taxation of International Executives 7 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Payments to Households for Participation in Selective Polls No taxation. Income of Person holding Entrepreneurial Patents No taxation. Income Generated from Collection of Recyclable Materials This tax exemption applies only to individuals, except for sole proprietors. Income Tax Relief No taxation. Cash from Special Funds No taxation. Moral Damage Compensation No taxation. Interest No taxation of interest received by individuals from bank deposits, corporate bonds and other financial instruments. Material damage compensations No taxation, unless the amount of compensation exceeds the damage caused. Payments received from the Fund of Guarantee of bank deposits No taxation. Interest on State Securities No taxation. Expatriate Concessions Are there any concessions made for expatriates in Moldova? There are no special concessions for expatriates in the Moldova. Expatriates having income generated in the Moldova cannot deduct expenses incurred in generating that income. Salary Earned from Working Abroad Is salary earned from working abroad taxed in Moldova? If so, how? Foreign employment income for working abroad is not taxable in the Moldova. Taxation of Investment Income and Capital Gains Are investment income and capital gains taxed in Moldova? If so, how? Investment income is taxed at standard rate (0 percent from 1 January 2008). Capital gains are subject to income tax at half the standard tax rate. Dividends, Interest, and Rental Income Dividends are subject to a withholding tax of 15 percent, except for those paid to resident business entities. Interest received from bank deposits, corporate bonds, and other financial instruments is tax exempt.
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Moldova
Rental income is subject to a withholding tax of 10 percent. Gains from Stock Option Exercises Residency Status Resident Non-resident Other (if applicable)
Grant N
Taxable at: Vest Exercise N Y/N
N N
N N
Y/N N
Foreign Exchange Gains and Losses Not taxable. Principal Residence Gains and Losses The gain from alienation of principal residence (owned for more than three years) is reduced by MDL 10,000 for every year of owning such residence starting from 1997. Deduction of losses from sale or exchange of principal residence is not permitted. Capital Losses Capital losses are permitted for deduction up to the limit of the capital gain. Capital losses not permitted for deduction in one year may be carried forward for the next year. Personal Use Items Items owned by the employer and granted in personal use of the employee are treated as fringe benefit amounting to, depending on the nature of the items, 0.0082 percent to 0.0822 percent of their value per each day of personal use. Such fringe benefit is subject to taxation at standard rates. Items leased by the employer and granted in personal use of the employee are treated as fringe benefit in amount of the expenses on lease per each day of use. Such fringe benefit is subject to taxation at standard rates. Gifts Gifts are taxed at the side of the donors, which are treated as if they received income in amount of the gift made. Additional Capital Gains Tax (CGT) Issues and Exceptions Are there additional capital gains tax (CGT) issues in Moldova? If so, please discuss? No. Are there capital gains tax exceptions in Moldova? If so, please discuss? Pre-CGT Assets Assets treated as capital assets include the following. z
Shares.
z
Documents certifying debtor liabilities.
z
Private property not used for business purposes.
z
Land.
z
Option to buy or sell capital assets.
Taxation of International Executives 9 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
General Deductions from Income What are the general deductions from income allowed in Moldova? In the determination of taxable income, the following annual deductions apply: General Deductions Residency Spouse not using his/her personal deduction Every dependent Every dependent handicap from childhood Charity and sponsorship deductions
Rate (MDL) 8,100 8,100 1,800 8,100 Up to 10%
Please note that such deductions are not applicable to non-resident natural persons. Tax Reimbursement Methods What are the tax reimbursement methods generally used by employers in Moldova? Current year gross-up is the normal method of recognizing tax reimbursements paid by the employer. Calculation of Estimates/Prepayments/Withholding How are estimates/prepayments/withholding of tax handled in Moldova? For example, Pay-As-You-Earn (PAYE), Pay-As-You-Go (PAYG), and so on. Pay-As-You-Go (PAYG) Withholding Deductions from employment income are covered under the PAYG system. If an individual is paid and/or employed, the employer will be required to withhold tax from their salary and wages and remit the tax to the tax authorities. At the end of the year the employer will provide the individual with a summary (known as a payment summary) of the income earned and tax deducted during the year. PAYE is intended to collect the correct amount of tax on an employee's pay automatically, so no tax return and no further payment of tax is required. However, if the employee has other income, which is not fully taxed at source, he/she would be obliged to file an annual income tax return and pay the outstanding income tax on his/her own. Pay-As-You-Go (PAYG) Withholding Not applicable to individuals. PAYG Installments Not applicable to individuals. When are estimates/prepayments/withholding of tax due in Moldova? For example, monthly, annually, both, and so on. Due by 31 March of the following year. Relief for Foreign Taxes Is there any Relief for Foreign Taxes in Moldova? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on? Taxpayers are entitled to credit the income tax paid abroad against their income tax liabilities in Moldova if such income is subject to taxation in Moldova as well. The amount of credit for any fiscal year may not exceed the income tax payable for such income at the income tax rates applicable in Moldova. The credit for tax paid abroad is permitted only in the same year when the relevant income is subject to taxation in Moldova.
Taxation of International Executives 10 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Relief for foreign taxes is also granted according to agreements on avoidance of double taxation ratified by the Parliament of the Moldova. General Tax Credits What are the general tax credits that may be claimed in your Moldova? Please list below. Information not available. Sample Tax Calculation4 This calculation assumes a married taxpayer resident in Moldova with two children whose three-year assignment begins 1 January 2008 and ends 31 December 2010. The taxpayer’s base salary is USD 100,000 and the calculation covers three years.
Salary Bonus Cost-of-living allowance Housing allowance Company car Moving expense reimbursement Home leave Education allowance Interest income from non-local sources
2008 USD 100,000 20,000 10,000 12,000 6,000 20,000 0 3,000 6,000
2009 USD 100,000 20,000 10,000 12,000 6,000 0 5,000 3,000 6,000
2010 USD 100,000 20,000 10,000 12,000 6,000 20,000 0 3,000 6,000
Exchange rate used for calculation: USD 1.00 = MDL 11.00. Other Assumptions z
All earned income is attributable to local sources.
z
Bonuses are paid at the end of each tax year, and accrue evenly throughout the year.
z
Interest income is not remitted to Moldova.
z
The company car is used for business and private purposes and originally cost USD 50,000.
z
The employee is deemed resident throughout the assignment.
z
Tax treaties and totalization agreements are ignored for the purpose of this calculation.
Calculation of Taxable Income Year ended Days in Moldova during year Earned income subject to income tax Salary Bonus Cost-of-living allowance Net housing allowance Company car Moving expense reimbursement Home leave Education allowance Total earned income Other income Total income Deductions Total taxable income
4
2008 366 MDL 1,100,000 220,000 110,000 132,000 66,000 220,000 0 33,000 1,881,000 66,000 3,828,000 15,720 3,812,280
2009 365 MDL 1,100,000 220,000 110,000 132,000 66,000 0 55,000 33,000 1,716,000 66,000 3,498,000 17,760 3,480,240
2010 365 MDL 1,100,000 220,000 110,000 132,000 66,000 220,000 0 33,000 1,881,000 66,000 3,828,000 19,800 3,808,200
Sample tax calculation generated by KPMG Moldova S.R.L, the Moldovan member firm of KPMG International, based on the Moldovan Income Tax Rates.
Taxation of International Executives 11 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Calculation of Tax Liability
Taxable income as above Moldovan tax thereon Less: Domestic tax rebates (dependent spouse rebate) Foreign tax credits Total Moldovan tax
2008 MDL 3,812,280 683,438
2009 MDL 3,480,240 623,671
2010 MDL 3,808,200 682,704
0
0
0
0 683,438
0 623,671
0 682,704
Taxation of International Executives 12 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Special Considerations for Short-Term Assignments5 Residency Rules Are there special residency considerations for short-term assignments? No, unless an assignment exceeds 183 days. Payroll Considerations Are there special payroll considerations for short-term assignments? No. Taxable Income What income will be taxed during short-term assignments? Employment income and other Moldova-sourced income, unless double taxation relief is available. Additional Considerations Are there any additional considerations that should be considered before initiating a short-term assignment in Moldova? A work permit, immigration certificate, and residence permit has to be obtained in the assignment lasts for more than one month.
5
For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.
Taxation of International Executives 13 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Other Taxes and Levies Social Security Tax Are there social security/social insurance taxes in Moldova? If so, what are the rates for employers and employees? Employer and Employee Type of Insurance Social insurance contribution Pension fund contribution Total Percent
Paid by Employer Employee Percent Percent 23 0 0 6 23 6
Total Percent 23 6 29
The obligatory social insurance contributions in the Moldova amounts to 23 percent payable by the employer and 6 percent payable by the employee. The annual amount of contributions to the Pension Fund is capped to MDL 10,620 (around EUR 664). Gift, Wealth, Estate, and/or Inheritance Tax Are there any gift, wealth, estate, and/or inheritance taxes in Moldova? Gifts are taxed standard rates at the side of the donors, which are treated as if they received income in amount of the gift made. Stamp duty applicable to transfers of real estate is 0.5 percent. Inheritance tax is from 0.1 percent to 1 percent of the value of inherited property depending on the level of relationship. Real Estate Tax Are there real estate taxes in Moldova? z
z
Non-residential real estate: 0.1 percent of the net book value of buildings and constructions. Residential real estate: from 0.02 percent to 0.56 percent of the estimated value of real estate, depending on the surface.
z
Land tax (residential): MDL 10 per square meter.
z
Land tax (non-residential): MDL 30 per 100 square meters.
Sales/VAT Tax Are there sales and/or value-added taxes in Moldova? Value-added tax is an indirect tax including transfer to the budget of a part of the value of goods (services) delivered on the territory of the Moldova as well as imported to the Moldova. Tax rates The standard VAT rate in Moldova is 20 percent of the taxable value of the taxable supply. Certain supplies are subject to a reduced tax rate. z
Eight percent for bread and bakery products, milk and diary products supplied in Moldova (except for exempted food for children).
z
Eight percent for pharmaceuticals imported or sold on the territory of the Moldova.
z
Eight percent for import and/or supplies on the territory of the Moldova of sugar from sugar beet.
z
Eight percent for import and/or supplies on the territory of the Moldova of production of plant growing and horticulture in natural form and production of livestock in its natural form, live weight and slaughtered. Taxation of International Executives 14
Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
z
Six percent for natural and condensed gas imported or supplied on the territory of the Moldova.
The supplies taxed at the zero rate include the following. z
z
z
z
z
Exports of goods (services). International freight and passenger transportation, airport services, services on sale of airplane tickets, ground maintenance of airplanes, air security, and air traffic control. Electric power, thermal energy and hot water supplied to the population and/or the public housing purposes. Import and/or supply to Moldova of goods and services for the official and personal use of diplomatic missions. Goods and services supplied to/from Free Economic Zones. Services provided by light industry companies on the territory of the Moldova under contracts on processing under customs regime of processing on the customs territory of Moldova. The list of such companies and types of services, as well as the mode of managing such services is established by the government.
Unemployment Tax Are there unemployment taxes in Moldova? None. Other Taxes Are there additional taxes in Moldova that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on. Customs Duties Customs duty must be paid before the submission of the customs declaration. However, the Moldavian Customs Department may be authorized by the law to extend the term of payment of the customs duty for certain goods. Rates of custom duties vary from 0 percent to 25 percent of the customs value depending on the category of the goods. Exemptions Goods imported or exported temporarily under the relevant customs regimes (including transit). Customs Clearance Levy The goods imported to or exported from Moldova are subject to customs clearance levies (with some exceptions). The above charges vary from 0.05 to 0.4 percent of the customs value of the goods, subject to maximum ceiling varying from EUR 100 to EUR 1,800.. Excise Tax Excise tax is an indirect tax set for some consumer goods imported to Moldova. Code
Type of Goods
160430 220300 Exhaustive list of codes is given in law
Black caviar Beer Alcohol drinks (wines, vermouths, rum, gin, vodka, and so on)
220710000, 220720000
Ethylic spirit
Measuring Unit value in MDL liter value in MDL
liter of absolute alcohol
Rate 25% MDL 1.85 From 5%, but not less than MDL 0.28/liter to 50%, but not less than MDL 0.45/liter of absolute alcohol MDL 0.09/% vol./liter
Taxation of International Executives 15 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
Code
Type of Goods
Measuring Unit value in MDL
Rate
220820120-220820299
Ethylic spirit
240210000 240220
Cigars Cigarettes - with filter - without filter Other cigars, cigarillos and cigarettes Mineral fuels and organic chemicals (benzene, toluene, cyclohexane, other hydrocarbons) Gas oil Cyclic and acyclic spirits
Value in MDL
50%, but not less than MDL 0.45/liter of absolute alcohol 25%
1000 pieces 1000 pieces 1000 pieces
MDL 6.6 + 12%, MDL 7.00 MDL 10.80
Ethers Mixtures of odoriferous substances Perfume
240290000 Exhaustive list of codes is given in law 271019310 290519000290549, 2906 2909 3302 330300100 321210
Stamping foils
321290100
Pearl essence
321290390
Pigments
321290900
Dyes and other coloring matter
381400900, 381700100, 381700500, 381700900 7113
Miscellaneous chemical products
8519,
Audio electronics
852110, , 852190000 852580
Video electronics
852580190
Jewelry
Video cameras, digital cameras, web cameras
8527
Radio communication electronics
870321-870324
Motor cars with sparkignition internal combustion reciprocating piston engine Motor cars with compression-ignition internal combustion piston engine (diesel or semidiesel)
870331- 870333
ton
MDL 2,700
ton value in MDL
MDL 1,125 5%
ton value in MDL value in MDL value in MDL value in MDL value in MDL value in MDL ton
MDL 2,700 5% 30%
value in MDL value in MDL piece
30%
piece
EUR 34
value in MDL value in MDL cm3
10%
cm3
Varies from EUR 0.45 to EUR 3.50
5% 5% 5% 5% MDL 2,700
15% EUR 11.,80
15% Varies from EUR 0.34 to EUR 3.50
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Moldova
Stamp Tax Stamp tax of 0.5 percent applies to most transfers of real estate, vehicles, and other assets. Local Taxes There are many local taxes, like property tax, land tax, and so on.
Taxation of International Executives 17 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moldova
KPMG in Moldova Chisinau Stella Alexa KPMG Moldova S.R.L. Bd. Stefan cel Mare, 202 Chisinau MD 2004 Moldova Tel. +373 (22) 580 580 Fax +373 (22) 540 499 e-Mail: salexa@kpmg.com
Taxation of International Executives 18 Š 2010 KPMG Moldova srl, a Moldova limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
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Š 2010 KPMG Moldova srl, a Moldova limited liability company a and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.