Moldova has to exclude the frequent amendment of the Tax and Customs Codes - the FIA
According to the recommendations of the Association of Foreign Investors, indicated in the sixth edition of the White Paper, it is also necessary to exclude situations where changes in tax legislation take effect immediately after their publication or are retroactive. In addition, investors insist that in the development of regulations that have an impact on the business environment, consultations were held with business representatives. Specialists also draw attention to the fact that the current provisions of the Tax Code regarding the deduction of certain expenses for calculating income tax on entrepreneurial activity are in many cases unclear, as they are interpreted differently by both taxpayers and the authorities, which leads to errors of taxpayers and inconsistent approach to calculation tax. In this connection, investors consider it important to establish clear criteria in determining costs that affect the calculation of income tax. In addition, the FIA considers it necessary to exempt from tax on dividends paid to resident companies of EU member states in order to harmonize Moldovan legislation with European directives, as well as stimulate European investment in Moldova. Investors also recommend extending the tax residency certificate. FIA members propose amendments to tax laws, eliminating the obligation of non-residents to submit residence certificates before the date of payment of income. According to investors, the certificate must be valid throughout the calendar year, regardless of the date of issue. All proposals of the FIA in the field of tax legislation relate to ensuring the stability of tax and customs policies, which is a determining factor for attracting investments. Investors note that in recent years, the business has faced a huge number of changes in this area, which requires adaptation of business strategies, and also causes uncertainty for long-term business planning. A full list of recommendations in the field of tax legislation can be found in the White Paper on the website www.fia.md. //03.10.2019 - InfoMarket.