Individuals providing services independently to pay flat tax of 15 per cent in Moldova

Individuals providing services independently will have to pay a flat tax of 15 per cent, as long as the total amount of receipts does not exceed 1.2 million lei. The provision is contained in a draft law approved by the parliament in the first reading today. The initiative concerns the independent economic activity of individuals, which will be regulated by law for the first time.

The flat tax of 15 per cent will include income tax, state social security contributions, mandatory health insurance premiums and local taxes.

According to the initiative, individuals providing services independently, without legal status, known as “freelancers,” will be able to start a business quickly and free of charge, based only on a notification and a self-declaration submitted online to the Public Services Agency. At the same time, these individuals will not be required to keep accounting records or submit reports.

The changes aim to reduce costs for entrepreneurs, simplify the administrative burden through digitalization, diminish informal employment and create premises for the development of small businesses in Moldova.

The new rules target activities of specialists in information technology and creative services, such as: software engineers, designers, photographers, filmmakers, architects, as well as artisans, nannies, mentors, locksmiths and other professions.

The Ministry of Economic Development and Digitalization said that the main goal of the draft was to bring into the labor market approximately 440,000 people, who are currently not part of the workforce, thus contributing to the reduction of the informal economy and providing everyone with the opportunity to work legally under simple and accessible conditions.

The legislative initiative will be submitted to parliament for consideration in the second reading. The authors suggest that, after adoption, the legislative changes enter into force on January 1, 2026.

According to statistics data, the number of companies contracting services provided by citizens independently has increased from 4,399 in 2018 to 6,491 in 2024, and the number of independent service providers has increased from 38,258 to 54,550 individuals.