Moldovan government approves the draft fiscal policy for 2021.
According to Finance Minister Sergiu Puscuta, fiscal 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 public spending. Next year, according to the bill, measures will be taken to reduce the turnover of cash in the national economy; some income tax rates will be unified in accordance with the 12% general rate; the size of the exemption for dependents (children) will increase by 50%, but the right to use the personal exemption for the spouse will be canceled; the income tax rate for legal professions will decrease from 18% to 12%; the term of application of tax incentives for income tax in the IT sector will be extended; income from non-taxable grants will not be subject to income tax of 4% (IVAO); withholding tax on income when distributing dividends between legal entities will be abolished; financial income of individuals will be subject to income tax of 3%. The VAT regime in agriculture will change by applying a lower rate for fertilizers and plant protection products at the same time as applying the same VAT rate for primary agricultural products; in the HORECA sector, the VAT rate will be reduced from 15% to 12%; the deduction of the amount of VAT on purchased goods that were destroyed in the course of business as a result of natural disasters will be allowed; the VAT refund program for agricultural producers affected by natural disasters will be extended until September 30, 2021 up to the amount of payroll tax paid; it will be granted the right to a VAT refund when modernizing fixed assets. Next year, it is planned to reduce the tax-free limit of mail sent by foreign online stores in favor of individuals - from 200 to 100 euros. Excise taxes on filtered and non-filter cigarettes are planned to be increased by 15% (on other tobacco products - by 5%), excise taxes on alcoholic beverages will grow by 5%, excise taxes on oil products - by 5-9%. Next year, it is planned to create a mechanism for subsidizing economic agents that collect, recycle and dispose packaging; amendments will be made to the Criminal Code in order to lower the threshold for determining contraband. A mechanism for subsidizing jobs for the employment of young people, migrant workers and people with disabilities who have returned to their homeland will be launched - the cost of this program will amount to 200 million lei. The bill has been submitted for approval by Moldova’s parliament. // 01.12.2020 - InfoMarket.
