If you want to do business in Moldova, you have to know about taxation for a LLC (SRL), which is the most common legal entity in Moldova.

Moldova resident companies are liable to income tax on their worldwide income. The predominant standard tax rate for income remitted, from our research, and these things do change, is 12%. The country may not have major incentives to bring in income from outside the country. Taxes are low in Moldova as the standard corporate tax rate is 12%. This ranks Moldova as 42nd overall in terms of CIT globally.

The VAT rate in MD is 20.00%, that ranks Moldova as 34th overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 23% to the equivalent of a social security fund and an employee will contribute 6%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 88hours. Contributing to this is the number of yearly labor tax payments, which is 1 in MD.

Thin capitalisation standards are not officially enacted. This refers to any type of laws on companies' debt-to-asset ratios. Payments on dividends from resident companies to other resident companies are taxed at a final withholding tax of 6%. Dividends received from foreign companies are included in CIT taxable base and taxed at a 12% rate. Dividends are a distribution of a portion of an earnings of the business, decided by the board of directors, to a particular class of shareholders.Dividends can be either shares of stock, cash payments, or other property. Taxable capital gain is generally calculated as 50% of the difference between the sale price and the fiscal value of the capital assets and are subject to CIT.

The interest withholding tax rate is estimated at 12%. This should be interpreted that the tax authorities expects LLC (SRL)'s to automatically withhold 12% of payments offshore on interests. The dividends withholding tax rate is 6%. This should be interpreted that the relevant tax authorities expects to automatically withhold 6% of payments offshore for on dividend payments. The royalties withholding tax rate is 12%. This means that the tax authorities expects companies to automatically withhold 12% of royalties remitted abroad. Withholding rates may be reduced on payments to residents of jurisdictions where Moldova has concluded a tax treaty with.
There is a tax on wealth in Moldova. There are transfer and real property taxes. There are no known inheritance taxes in Moldova. There are not many widely used R&D initiatives that provide tax relief in Moldova.

The above is not tax or legal advice for your company circumstances. Incorporations.io can point you to an accountant in Moldova who can properly advise you. Ready to get started? Click the free consultation button above.