Moldova’s Ministry of Finance has submitted the draft tax and customs policy for 2021.
Following the completion of consultations and the endorsement of the draft budgetary and customs policy measures for 2021, the Ministry of Finance submitted for public consultation the draft law which is to be approved by the government and adopted by parliament. Fiscal and customs policy measures for the next year are aimed at promoting the development of the national economy by supporting the business environment and consolidating budget revenues to finance government spending. Next year, according to the bill, authorities are to take the following measures: revise the benefits for individuals and increase the amount of personal exemption; standardize the rates for personal income; abolish withholding tax on income when distributing dividends between companies; revise VAT rates in agriculture; continue implementing the VAT refund program for agricultural producers affected by natural disasters; approve for a period of 3 years excise taxes on tobacco and alcoholic products, as well as oil products; implement a mechanism for subsidizing enterprises engaged in packaging collection and processing. The original draft was supplemented with a number of provisions: insurance companies will be allowed to deduct reserves created to cover claims related to insurance; it is envisaged to extend the right to deduct expenses paid by taxpayers in the form of membership fees and contributions for all associations representing entrepreneurial activity - 0.15% of the remuneration fund; income from non-taxable grants will not be subject to income tax of 4% (IVAO); the deduction of medical insurance contributions from the income of non-resident individuals received from activities in accordance with the employment contract will be allowed; the terms of registration of real estate lease agreements between individuals, as well as the terms of payment of the obligation will be revised (at the moment it is paid in advance, it is offered until the 25th day of each month). In addition, from January 1, 2021, it was proposed to reduce the VAT rate in the HORECA sector - from 15% to 12%; the tax-free limit on goods imported into the country through international mail will be reduced from 200 to 100 euros; measures will be taken to reduce cash turnover. At the same time, following the results of public consultations, some measures were excluded from the project, which require further study, including the unification of the tax rate on income from leasing real estate by some individuals to other individuals (the rate of 7% remains the same); inclusion of road taxes in excise taxes on petroleum products (the current system of road taxes collection will be maintained); exclusion of local tax on dogs and tax for organizing auctions and lotteries in the territory of the administrative-territorial unit; exclusion of payments for emissions of pollutants from stationary sources and payment for bottling of pollutants; an increase in the additional excise tax for expensive cars; adjustment of the tax regime applied to persons working in the justice sector. The Ministry of Finance is holding consultations on the updated draft tax and customs policy until November 26, the document can be found at: https://www.mf.gov.md/sites/default/files/sites/default/files/atasamente/comunicate/Politica % 20fiscala% 202021.pdf. // 24.11.2020 - InfoMarket.
