Moldovans getting income from sources outside country taxed under fiscal code - fiscal body official says

Interview given with the MOLDPRES State News Agency by  the deputy head of the Principal State Fiscal Inspectorate Iurii Lichii

[MOLDPRES]: How are the Moldovans working abroad taxed?

[Lichii]: In line with the provisions of the article No 13, paragraph (1) b, c) from the Fiscal Code, subjects of taxation are as follows:

- private people residents and citizens of Moldova not operating as entrepreneur and who, during the fiscal period, get taxable revenues from any source in Moldova and from any source outside the country for their activity in Moldova;

- private people residents and citizens of Moldova not operating as entrepreneur and getting income from investments and financial income from any sources outside Moldova.

At the same time, under the provisions of article 4 paragraph  (1) of the Fiscal Code, if an international treaty regulating taxation or including norms regulating taxation, Moldova is party to, stipulates other rules and provisions than the ones seen in the fiscal legislation, then the rules and provisions of the international treaty are enforced.

[MOLDPRES]:  What are the categories of workers, Moldovan citizens, who are taxed for activity abroad?

[Lichii]: The national legislation does not set provisions on taxation of categories of workers, but refers to taxation of incomes got by private people residents and citizens of Moldova (migrant workers’ remittances transferred to the country from abroad through banks are not taxed - our note).

[MOLDPRES]:  Are the citizens who pay taxes in the country where they work subjected to double taxation, if Moldova has no agreement on avoidance of double taxation?

[Lichii]: To avoid double taxation, according to the provisions of the article 82, paragraph (1) of the Fiscal Code, the tax payer has right to pass into account the income tax, which is paid in any other state, if this income is to be subject to taxation in Moldova too.

[MOLDPRES]:  Is there a mechanism for detecting tax evasion by our workers from abroad, based on the transfers on their banking cards?

[Lichii]: According to the article 226 of the Fiscal Code, more indirect information sources can be used as regards certain transactions, such as: information from financial institutions (branches or subsidiaries), people performing notary activity, customs bodies, law enforcement bodies, stock exchanges and/or other public bodies on transactions and operations made by the private person and data on them, as well as regarding the similar transactions and operations carried out by private people in the same conditions, etc.

(Reporter V. Bercu, editor A. Raileanu)