Description of the fiscal policy in the Republic of Moldova
Fiscal policy is a mix of state measures and actions to establish fiscal rules in the economy in order to form and generate sufficient budget revenues to finance budget expenditures, as well as to use available resources as a tool to stimulate growth. Taxes, duties, contributions, premiums, export/import duties and other compulsory payments are essentially the sources of the national and local budgets.
From the point of view of the fiscal policy of your own company, it is very important to ensure the balance between fairness and optimization. In this article we aim not only to list the taxes and duties applicable in the Republic of Moldova, but also offer methods for their lowering and optimization.
Taxes and duties borne by companies in the Republic of Moldova
It is the responsibility of each taxpayer to calculate and pay correctly and timely taxes and duties to the budget, thus fulfilling the contributory task of forming the budgetary sources that ensure the existence and development of the country.
The following tax payments are most frequently applied in the Republic of Moldova:
- Income or profit tax (common rate mainly 12%);
- Value added tax (20% standard rate, reduced rates and zero rate);
- State social insurance contributions (standard rate 24%);
- Compulsory medical insurance premiums (9% rate);
- Local taxes (quotas and fixed taxes approved by local authorities) etc.
Any company should ensure the transfer of these mandatory taxes and duties to the budget that are free of charge (direct and immediate). The art of applying a fair and efficient fiscal policy is invaluable, which Vioser experts are ready to share with their clients in consulting projects, trainings, forums, etc. Fiscal optimization has been, is and will be a current and necessary topic for the disciplined, correct and an efficient entrepreneur!
Legal ways to optimize taxes
The optimization of taxes and fiscal expenditures involves a complex process that requires both theoretical knowledge in the field and practical skills based on many years of experience. In fact, there are several ways and tools you can use to reduce tax expenses in your business. Here are some examples of this type:
- reduction of non-deductible expenses and their permanent monitoring (expenditures for secondment, representation, unconfirmed by documents, etc.). Thus, the share of expenses that cannot be deducted and, respectively, optimized will be reduced;
- use of existing tax facilities – their correct application will significantly reduce tax expenditures and improve your cash flow, which will mean reaching the maximum potential for optimizing tax expenditures;
- choosing the optimal tax regime and/or the legal form of organization of the entity if the tax legislation allows more options – it is a measure that is necessary to resort to at the early stage of setting up the business, because it is quite important (SRL vs ÎI, GȚ vs ÎI, independent activity vs. patent-based activity, etc.) Many companies in the Republic of Moldova have a tax regime that is not exactly appropriate or not optimized from this point of view. If the tax legislation offers you alternative options – then it is reasonable to choose the most optimal and efficient option;
- other tools we discuss during Vioser training and consulting projects.
An informed entrepreneur is an “armed” entrepreneur, i.e. efficient, disciplined and transparent, who becomes a perfect taxpayer! Vioser offers you all the support, professionalism and experience we have in this regard.
