Tax reform legislative package entered into force

Chisinau, 1 October /MOLDPRES/- The legislative package on tax reform entered into force today. It provides for a flat rate of 12 percent of income tax for private people, the reduction of 23 to 18 percent of the employer's contribution to the State Social Insurance Budget and doubling the personal exemption from 11,280 lei to 24,000 lei. Thus, the subsistence minimum will no longer be taxed.

Other amendments are aimed at setting a special tax regime for hotel and restaurant business by reducing the VAT rate from 20 percent to 10 percent. At the same time, taxi drivers with salaries below 10,000 lei per month will pay a single income tax of 500 lei per month.

Also, private people can voluntarily declare undeclared goods by paying a 3% tax on the value of the liberalized goods by 20 December 2018. Voluntary declaration of assets will not be available to civil servants.

Another point of the tax reform refers to currency repatriation, which will reduce the pressure on the Moldovan economic agents, performing external economic transactions. Thus, the repatriation period from 2 to 3 years will be increased.

The amendments were adopted by parliament in late July.

(Reporter N. Sandu, editor L. Alcază)