Amcham proposes a 6-year limit on the carryback of registered tax losses.
The corresponding proposal of the American Chamber of Commerce in Moldova (Amcham Moldova) is contained in the organization’s comments on the draft tax and customs policy for 2025. It is noted that this measure will effectively capitalize losses incurred and will support new companies created or entering the Moldavian market. The pandemic crisis, the war in Ukraine, and inflation rising to record levels have significantly slowed down the rate of investment recovery in Moldova. However, companies continue to invest, create new jobs and implement social responsibility projects. In international practice, there are many examples of states in which there are no restrictions on the transfer of tax losses (Germany, Great Britain, France, Italy, etc.). In addition, as Amcham notes, this will be a positive measure to create a more favorable investment environment and attract foreign investment. The ability to use incurred losses to make a profit will be a measure of support for the affected business environment. Amcham notes that unlimited capitalization of tax losses is the right of an economic agent. These losses are transferred for business purposes, their correctness is verified by the authorities during fiscal control. Limiting the use of losses puts additional pressure on companies, whose main goal in any case is to benefit from the investments created. // 24.06.2024 — InfoMarket.
