VIDEO // Moldova's draft fiscal policy for 2027 submitted for public consultation

The draft fiscal policy for 2027 today was presented for public consultation. Finance Minister Andrian Gavrilita presented the main provisions of the draft and emphasized that the objective of the proposed changes was for every working citizen to earn more, and for every entrepreneur to be able to invest easily, conveniently and competitively here at home.

“We have launched for public consultation the draft Fiscal Policy for 2027: ‘Moldova Works. Moldova Invests.’ The goal is for every working citizen to earn more and for every entrepreneur to be able to invest easily, conveniently and competitively here at home. We have made every effort to build the best possible draft for our country. We invite you to express your opinion and contribute with proposals. Together, we ensure that Moldova works. Moldova invests,” announced Andrian Gavrilita.

The finance minister also presented the main changes proposed in the draft fiscal policy for the next year.

Thus, a 0% rate will be applied to reinvested profit, so that all companies will benefit from non-taxation of profit that is not distributed.

Also, the value-added tax (VAT) will be standardized and refunded quickly. The standard rate remains 20 per cent, but exemptions are eliminated, which will facilitate the monthly, full and automated refund of accumulated VAT.

At the same time, the independent activity (freelance) regime is extended to any economic activity. Incomes of up to 1 million lei will be taxed at 15 per cent.

The draft also provides for the elimination of redundant taxes, such as the private tax and the local amenities (territory improvement) tax (as of 2028), and the property tax is capped at 1 per cent.

The excise duty for diesel fuel used in agriculture will be refunded, from the effective rate (gradually increasing) down to the minimum allowed in the EU.

As for changes for citizens, the draft stipulates that personal income tax will be reduced from 12 per cent to 7 per cent for incomes below 1 million lei per year and will become 15 per cent for those with incomes above 1 million lei per year.

At the same time, legal employment is supported through the initiative to transform the personal allowance into a direct monthly payment of up to 500 lei (an increase of at least 200 lei per month) for all those who work legally.

Besides, the additional amounts collected from VAT standardization will finance energy compensations for vulnerable households and incentives for children.

Another change concerns the introduction of excise duties for polluting or harmful products, including liquids for electronic cigarettes, sugary drinks and fireworks.

After the public consultations, the draft will be examined by the government and parliament.