Moldovan finance ministry approves fiscal, customs policy measures for 2021

Chisinau, 23 November /MOLDPRES/ - The Finance Ministry has finished the process of public consultation and approval of the document on the fiscal and customs policy measures for 2021. The institution proposed for public consultation the draft law to this end, which is to be approved by the government and adopted by parliament.       

Under the document, the fiscal and customs policy measures for the next year are aimed at contributing to the development of the national economy through backing the business environment and strengthening the budget revenues for financing the public spending.  

„The principal fiscal and customs policy measures for the next year refer to: revising the exemptions of private people and increase in the personal exemption; standardization of quotas of taxing the incomes of private people; removing the retaining of the income tax in the case of distributing the dividends between companies; revising the quotas of the value added tax (VAT) in agriculture; continuing the programmes on VAT’s reimbursement for the farmers hit by natural calamities; establishing the excise duties on tobacco products, alcoholic products and oil products for a three-year period; implementing a mechanism of subsidizing the companies collecting and recycling packing,’’ the Finance Ministry said.     

Following the covering of a comprehensive process of public consultations, the following fiscal and customs policy measures need additional consideration and, respectively, found no finality in the draft law: standardizing the quota of the income tax on the renting of real estate between private people (the 7-per cent quota is maintained); inclusion of road taxes in the excise duties on oil products (the current system of road taxes will be kept); excluding the tax on dogs and tax on the organization of auctions and lotteries on the area of the administrative and territorial unit; excluding the payment for the emissions of pollutants of stationary sources and payment for the discharges of pollutants; increase in the additional excise duty set on the value of touring cars; adjusting the fiscal regime applied on people who carry out professional activity in the justice sector.      

At the same time, as a result of proposals received in the process of public consultations, the draft law which regards the fiscal and customs policy for 2021 was completed with the following stipulations: allowing insurance companies to make deductions, commissions formed for covering the debts specific for the insurances field; extending the right to deduction of the expenses paid by tax payers in form of taxes on adhesion and dues for all associations of representing the entrepreneurial activity, worth 0.15 per cent of the labour remuneration fund; non-taxation with the income tax at the quota of 4 per cent (IVAO) of the incomes from the non-taxable grants.   

Also, the draft law envisages the allowing of deduction of medical insurances premiums from the income of non-resident private people got from the work according to the labour contracts; revising the conditions of registering contracts on the rental of real estate from private people to private people, as well as the term of payment of the bond (presently, it is paid in advance and is suggested to be paid till the date of 25 of the month); reducing the VAT quota from 15 to 12 per cent for the HORECA sector; diminishing the contribution from 2.5 to 1.5 per cent from the income on sales related to mobile telephony services staring from 2022; other proposals on improving the fiscal and customs legislation.