Moldova goes up 25 positions on top of countries with most efficient tax systems

Chisinau, 24 November /MOLDPRES/ - Moldova has gone up 25 positions against 2013, reaching the 70th position out of 189 countries included in a top of countries with the most efficient taxation system. The top was conducted by the audit, tax and advisory company PricewaterhouseCoopers (PwC) and the World Bank.

Moldova managed to considerably reduce the number of taxes paid from 31 to 21. Yet, the country remains far behind more Commonwealth of Independent States (CIS) countries, such as: Georgia with five taxes, Kazakhstan, Azerbaijan, Belarus and Russia where entrepreneurs pay 6-7 taxes, including an income tax and contribution to the social fund.

On the other hand, the number of paid taxes is burdensome in Tajikistan and Uzbekistan, standing at 31 and 36, respectively.

According to the Paying Taxes 2015 study, Moldovan firms pay one income tax, 14 taxes on social security contributions and taxes on labour force, while the remaining six are property, road or local taxes. As for the total tax rate, which measures the share of taxes and contributions paid by a firm as a percentage of its profit, Moldova is below the regional average, with a quota of 39.7 per cent, of which the income tax is 9.3 per cent on average, and the contribution to the social fund - 30.2 per cent.

In Romania, the total levy amounts to 43.2 per cent, in Russia the tax burden is even higher, 48.9 per cent, and in Ukraine - 52.6 per cent.

Entrepreneurs from Moldova annually lose 185 hours to pay taxes, including 42 hours to pay the income tax and 88 hours for the payment of social security contributions and tax on labour.

Russia ranks 49th in the top, Romania is on the 52nd position, and Ukraine ranks 108th out of 189 states included in the ranking of countries with the most efficient taxation system.