Since 2023 Moldova might revert back to the mechanism of progressive taxation of individuals’ incomes.
Corresponding amendments to the Tax Code were proposed to introduce within the Draft Fiscal Policy for 2023. In particular, for individuals, individual entrepreneurs and individuals engaged in professional activities in justice and health the income tax rate will be 12% if the annual income does not exceed 1 million lei, and 18% - if the income exceeds 1 million lei. Individuals with incomes up to 360 thousand lei per year will retain the right to personal exemption. The proposed measure is expected to bring additional 94 million lei to the budget. Let us remind, according to the State Tax Service, in 2021, 4007 people in Moldova declared an annual income exceeding 1 million lei. Their number increased by 35.2% relative to the previous year. It is worth noting that earlier in Moldova a two- and three-level progressive taxation mechanism was applied in different years - the income tax rate was 7%, 12% and 18%, depending on the annual income of individuals. // 14.11.2022 - InfoMarket
