As of August 15, Moldova expanded the list of non-taxable incomes of physical persons-citizens, as well as regulated the conditions of distribution of incentive capital to employees
The State Tax Service reminded about the changes introduced in the Tax Code this summer, which came into force on August 15. Some of them concern income tax. Thus, since August 15, income of resident individuals received in the form of capital gains or interest on government securities and/or on bonds issued by local public administration authorities is non-taxable income. Accordingly, there is no final income tax withholding by the Ministry of Finance or primary dealers. At the same time, the list of non-taxable income has been adjusted: it now does not include income received from the sale of electricity by resident individuals who produce energy from renewable sources and to whom the net metering/net billing mechanism under the Law on Promotion of the Use of Energy from Renewable Sources applies; rights granted under stock options plan; and income received by the system operator and/or thermal power unit as a result of receiving power lines and power plants free of charge. Since August 15, the procedure for taxation of personal income received from the surrender of ferrous and non-ferrous metal waste, industrial waste containing metals or their alloys has changed. Now they are taxed by withholding 12% of income tax at the source of payment by an economic entity. Also, there came into force amendments providing for the abolition of the tax regime for economic entities working in the sale of waste of ferrous and non-ferrous metals, but they will apply from the tax period of 2024. According to another change, from August 15, the economic agent has an obligation to adjust the income received by taxpayers engaged in entrepreneurial activities from economic transactions with founders-individuals or other interdependent persons at a price below the market price. At the same time, these provisions do not apply to transactions to which the arm's length principle was applied in determining the price. In addition, the conditions for granting incentive payments to employees from the incentive capital have been regulated. Thus, the founders of the company have the right to form, by unanimous decision of the participants, the incentive capital to encourage them and interest them in improving the efficiency of activities, active participation, and creative initiatives in favor of the company beneficiaries (employees). The amount of the incentive capital shall not exceed 25% of net profit, and the amount paid to each employee shall not exceed 10% of the employee's annual salary in the year in which the incentive capital is formed. At the same time, employees must have resident status and have been employed for at least 20 full months as of the date of payment. It should be noted that payments from the incentive capital are equal to dividends, but are paid once a year, while the tax regime for the incentive capital has not changed - income tax at the rate of 6% will be withheld at the source of payment. //26.09.2024 - InfoMarket.
