The abolition of the discount in case of full early payment of real estate tax will bring about 35 million lei to local budgets in 2021.
According to the draft tax policy for 2021, starting next year, Moldova will cancel the 15% discount provided when paying the full amount of real estate tax before June 30. This will strengthen the financial autonomy of local governments. Cancellation of this discount was previously recommended by the World Bank, which indicated that the benefit is provided on the basis of subjective criteria associated with a group of taxpayers. It should be noted that in recent years almost 80% of taxpayers paid real estate tax with a 15% discount. Previously, two mandatory deadlines were also in force for paying the tax (August 15 and October 15), from 2020 the deadline for paying real estate tax is September 25. In addition, the tax policy for 2021 introduces a clarification regarding the exemption from the payment of real estate tax for construction in progress. Thus, real estate is exempted from tax if it has been under construction for more than 3 years as of January 1 of the tax year and is more than 50% unfinished. To obtain this exemption, the owner must, by April 1 of the tax year, submit to the local tax and collection services at the city halls confirmation that the property is under construction at a level not exceeding 50% of the work. If the work is more than half completed, no exemption will be granted. // 03.12.2020 - InfoMarket.
