Zero rate extended, deductions for education, facilities for green energy in Moldova: what fiscal package approved in first reading includes

The parliament today approved, in the first reading, the fiscal simplification package and business support measures, an initiative supported by 60 MPs. The draft belongs to a group of parliamentarians from the faction of the Action and Solidarity Party (PAS).

According to deputy Victoria Belous, one of the draft’s authors, the document “eliminates legislative discrepancies, clarifies procedures and introduces absolutely necessary measures to support companies and citizens”.

Thus, one of the most important provisions is the extension, by another year, until 2026, of the zero rate on undistributed profit tax. This facility is meant for companies with an annual turnover of up to 100 million lei and a maximum of 249 employees.

“More and more business support measures are needed, and the one-year extension of the deferment of income tax payment for enterprises that do not distribute profit is one of them. This will allow companies to reinvest the money in development and expansion,” said Victoria Belous at the plenary meeting.

She also said that, in recent years, over 7,000 companies had already benefited from this fiscal policy.

The draft also introduces a support measure for renewable energy producers, who will be able to deduct expenses incurred when transferring installations, electric lines, or transformer stations free of charge.

“We propose giving the right to deduct expenses for renewable energy producers, if they transfer the necessary infrastructure free of charge, according to the electricity law,” noted Belous.

Another proposal introduces the possibility for any individual to deduct their own and their children's education expenses.

“For citizens, we come with two essential measures. The first is extending the deductibility of education expenses: not only for children, but also for one's own studies. We propose an annual cap of 20,000 lei,” specified the lawmaker.

The authors also propose increasing the ceiling of registration as payer of value added tax (VAT) from 1.2 million to 1.5 million lei.

“This measure reduces the administrative burden on small- and medium-sized enterprises (SMEs) and simplifies tax administration. Farmers and small entrepreneurs are among the main beneficiaries,” said Belous.

The deputy also highlighted the proposed solution for individuals who introduced cars with foreign plates before June 30, 2025, and did not remove them in time.

“For those who have scrapped or dismantled their cars, we propose a two-year period during which, if they pay a one-time fee of 40,000 lei, the customs obligations will be considered settled,” Victoria Belous also said.

Once finalized, the draft law will be proposed to parliament for examination in the second reading. The legislative amendments are to come into force on January 1, 2026.