In Moldova, social enterprises can be exempted from paying income tax and local fees.
A legislative initiative has been registered in the parliament, which proposes to clarify the concept of a social enterprise and the conditions for assigning this status, as well as to introduce tax incentives for the development of social entrepreneurship. In particular, according to the proposed amendments to the Law on Entrepreneurship and Enterprises, public associations, foundations, religious cults, private institutions and / or individuals who work in the field of social entrepreneurship in order to solve social problems in the interests of the community, and non-profit organizations will be able to create social enterprises, who directly carry out activities in the field of social entrepreneurship. The status of a social enterprise can be obtained by non-profit organizations directly working in the field of social entrepreneurship, limited liability companies and production cooperatives that meet a number of conditions stipulated in the law. Currently, there is no “non-profit organization” component in the definition of the activities of social enterprises, and enterprises created by non-profit organizations cannot receive the status of social enterprises. The authors of the bill also propose to amend the Tax Code and establish income tax rates for social enterprises at 0% of annual taxable income, and non-profit organizations, limited liability companies and production cooperatives that have received the status of a social enterprise should be exempted from paying local taxes and fees. Also, the bill provides that the state will stimulate the participation of social enterprises in public procurement through the so-called positive discrimination in favor of a social enterprise. The bill has been sent to parliamentary commissions for consideration. // 13.09.2021 — InfoMarket
