Moldovan parliament passes package of fiscal incentives in first reading

The parliament has voted, in the first reading, a comprehensive legislative package that provides tax facilities for both the business sector and citizens. The initiative, developed by the Ministry of Finance, includes amendments to 12 normative acts.

The authorities say that these changes will reduce administrative costs and boost confidence in the national economy.

Among the most significant changes, there are: the introduction of tax deductions for employees' vacations in rural tourist structures or through holiday vouchers, limited to 50 per cent of the average salary; deduction of expenses for sports facilities provided to employees; fiscal support for parents with small children, through the deductibility of childcare payments up to 2,500 lei.

The scope of non-taxable incomes is also being expanded. The income tax exemption will include: allowances provided to young employees in priority industries; transport and rent expenses for officials working in other settlements.

In support of the business environment, the new amendments address: the simplification of regulations for small and medium-sized enterprises (SMEs), especially in rural areas and in the IT, agriculture and tourism sectors; clarification of tax regimes for large companies; limiting the requirements concerning the transfer pricing for transactions exceeding 20 million lei.

The Ministry of Finance says that this reform is part of a broader effort to modernize fiscal policy, focusing on stimulating the economy and protecting vulnerable categories.