Deductions for educational, professional development expenses increase to 20,000 lei in Moldova

The cap for deducting educational and professional development expenses will be increased to the sum of 20,000 lei in 2026, compared to 16,100 lei as it is at present. The amendment is included in a draft law approved by the government today.

Thus, the amount of 20,000 lei will be exempt from income tax for individuals who hold confirming documents that they have spent this money on their education or their children's education. This sum can also include expenses incurred for one's own professional development, not just for children, as it has been previously.

To benefit from this facility, parents will need to submit the income tax statement and attach documents that confirm the payments.

At the cabinet meeting, Finance Minister Andrian Gavrilita said that no radical changes in fiscal policy were proposed for 2026, in order to guarantee predictability for the private sector.

"However, we need to come up with some improvements. Here I highlight the deduction of expenses incurred for education, up to 20,000 lei," Andrian Gavrilita emphasized.

At the same time, the draft law regulates the implementation in 2026 of the zero-rate on income tax on undistributed profits. The facility will be valid, with certain exceptions, for companies with an annual turnover of up to 100 million lei and with fewer than 249 employees.

Another measure provides for raising the registration threshold as a VAT (value added tax) payer from 1.2 million lei to 1.5 million lei. Consequently, tax compliance costs will be reduced for a significant number of small and medium enterprises (SMEs) and economic growth will be stimulated by encouraging the expansion of SMEs’ activities.

The draft law provides an additional measure for agricultural producers, by revising the conditions for reimbursement of the accumulated VAT amount in the account. In the context, farmers will have the right to a VAT refund equal to the VAT amount reflected in the VAT statement for the fiscal period December 2024.

The draft is to be considered in parliament.