Moldovan cabinet approves draft on tax, customs policy for 2018

Chisinau, 04 October /MOLDPRES/ – The Executive approved the Tax and Customs Policy for 2018 today. The document establishes clear tax rules, based on fairness and fiscal simplicity, which will ensure both the stimulation of the investment environment in the Republic of Moldova and the increase of the receipts to the state budget, the government’s communication and protocol department has reported.

The draft law contains a series of amendments and additions to the legislative acts resulting from the objectives of fiscal and customs policies, fiscal and customs administration, the concept for rewriting the Fiscal and Customs Code, as well as the obligations assumed by the Government under the Association Agreement RM -EU.

Regarding the activity of economic agents, the most important direct and indirect fiscal measures imply a new methodology for recording the fixed assets; application of the reduced VAT rate of 8 per cent for solid bio-fuels produced for public institutions; the application of VAT exemption with right of deduction, excise duty and customs duties to the supply of fuel and merchandise to Moldovan vessels that are involved in international transport. At the same time, the right to a refund of value added tax is granted to milk producers.

For individuals, new taxable income installments are set, with the amount of personal exemptions being increased by 6 per cent. Also, the 5 per cent quota is set for taxing the income of citizens delivering agricultural production to the economic agents. The project also aims to extend the tax on wealth for other components, namely on cars worth more than MDL 1.5 million.

The document also includes provisions for transposing EU directives in the field of indirect taxation, such as VAT and excise taxes. In particular, the scheme for raising excise duty on petroleum products, tobacco and alcohol is laid down for three years.

The main customs amendments refer to the cancellation of tax and customs facilities for duty-free shops located on the territory of the country or on entry into the country, as of 01 July 2018. The licence holders in the field, valid on the date when the law enters into force, is to continue activity until it expires.

The fiscal and customs policy for 2018 is to be adopted by Parliament.