In Moldova, some income tax rates will be unified from 2021 by setting a flat rate of 12%.
This is provided for by a draft tax policy for 2021 presented by the Ministry of Finance for public consultation. The explanatory note to the project notes that the system of taxation of income in Moldova is characterized by fragmented tax rates - 12%, 10%, 7%, 6%, 5%, etc. The unification of the income tax rate to the standard 12% will simplify the tax administration process, as well as ensure tax fairness and the application of a unified tax approach for equivalent situations. According to the project, in 2021, the income tax rate on the sale of goods and the tax rate on the lease of real estate by individuals to legal entities will increase from 10% to 12% (excluding agricultural land). At the same time, it was proposed to keep at the level of 7% the rate on the lease of real estate by one individual to another individual (recall, initially the possibility of raising this tax to 12% was discussed). In addition, for several categories of activities, it is proposed to set the income tax rate at 50% of the standard rate, respectively, in 2021 the income tax rate for them will be 6%. Technically, the income tax on dividends will be brought to this level (in fact, the rate will not change compared to 2020). The tax on income from the sale of agricultural products to citizens and buyers will also increase from 5% to 6%. It is proposed to keep the income tax for peasant farms at the current level - 7% (initially the Ministry of Finance planned to reduce it to 6%). In addition, from next year the income of individuals on bank deposits will be taxed, but at a 4-fold reduced rate - 3% instead of the 12% rate provided for in the legislation. Taxation will be carried out through the ultimate withholding of income tax, and interest will accrue to income received by resident individuals from interest on bank deposits, deposits in savings and loan associations and certain corporate securities. The above measures will provide revenues to the 2021 budget by about 100 million lei. // 24.11.2020 — InfoMarket.
