Moldovan parliament adopts draft tax, customs policy for 2017

Chisinau, 25 November /MOLDPRES/ - The parliament today adopted a draft tax and customs policy for 2017 in the first reading; the document provides for mechanisms of reducing the effect of the inflation forecast on the residents’ incomes.

Under the draft, the sum of personal exemption and of the one for maintained persons, calculated from the taxable income, will be increased by five per cent in 2017, by their adjusting to the inflation rate forecast for this period.   

Also, the installments of taxable revenue will increase from 29,640 lei in 2016 to 31,140 lei in 2017. Two quotas of taxing the revenues will be applied: seven per cent for the revenues worth up to 31,140 lei and 18 per cent for the ones exceeding this sum.  

At the same time, the personal exemption of the participants in the Chernobyl accident relief works, participants in the battles for Moldova’s territorial integrity, as well as in battles in Afghanistan, first and second degrees invalids, victims of political repressions, who were subsequently rehabilitated, other categories of persons related to them, will increase from 15,060 lei to 15,840 lei.   

The document also sees extension of the term of submitting of the form of return, the deadline being 30 April. Presently, this term expires on 31 March.  

Another novelty deals with setting a single tax regime of taxation of the incomes got from the work carried out by lawyer at the latter’s office or associated office of lawyers, public notary, bailiff, mediator at the private office of mediation, legal expert, translator (authorized interpreter), as well as introducing the exemption of the activities carried out by professional associations of the representatives of professions related to the justice system.   

Thus, the quota of taxation applied on the incomes got by people carrying out professional activities related to the justice sector will be of 18 per cent, with right of deducting, on fiscal purposes, of expenses ordinary and necessary for carrying out the professional activity, but not less than three percent of overall incomes got. Additionally, these persons are to pay also the tax for arranging the territory, just as any person carrying out entrepreneurial activity. Presently, this regime is applied only on the incomes got by lawyers, notaries and bailiffs in Moldova.   

For the first time ever, the draft sets a simplified tax regime in terms of tax for private people, who got incomes from independent activities of trade with other private persons, without building an organizational and legal form of entrepreneurial activity. The amendment supports private people, so that they start their own business and remove difficulties related to the trade activity based on entrepreneur licence, which will be suspended beginning with 2017.

Thus, in accordance with the simplified tax regime, the private people getting incomes from independent activities of trade with other private persons might pay a tax directly proportional to the size of the income got from sales. The tax will stand at 1 per cent of the sales volume.  

Among the facilities provided to the business environment, there are adjusting the management period, which may be different from the calendar year, carrying to account the sum of the value added tax (VAT) for services provided regularly, exempting authorized economic agents from paying the interest for the extension of the term of payment for export operations, etc. Also, the tax facilities for the IT sector companies have been extended till 2020.   

The document sees a yearly increase in the quotas of excise duties on tobacco products starting from 2017 till 2019. Also, the excise duties on oil products will be increased too, and the ones on alcoholic drinks – adjusted to the inflation rate for the next years.  

(Reporter A. Plitoc, editor M. Jantovan)