Anton Goncharuk
According to the STS report, persons carrying out entrepreneurial activity submitted 98,588 income tax declarations for 2024. The economic entities registered revenues of 687.2 billion lei and expenses of 625.7 billion lei for 2024. Compared to 2023, the revenues of Moldovan enterprises increased by 15.2 billion lei, while the expenses increased by 10.4 billion lei. The tax on income declared by economic agents for the 2024 tax period amounted to 7.5 billion lei, increasing by 0.2 billion lei compared to the same indicator of the 2023 tax period.
The results of the campaign showed that last year the growth of companies’ income was higher than the growth of expenses. According to the data reflected in the income tax declarations, the growth of incomes in 2024 was recorded at 2.2% compared to the data for the 2023 tax period. Accordingly, the growth of expenses was recorded at 1.7%. This indicates more efficient management and spending, the authors of the report emphasize.
At the same time, there continues to be a certain disproportion in the shares of corporate income tax distributed by industry. The data show that the largest amounts of tax were registered in such industries as trade, financial activities and insurance. The most serious revenues were shown by trade, whose share amounted to one third of the total amount of tax collected. And together with financial activities and insurance, its contribution exceeded half of the amount.
Manufacturing, production and supply of electricity and heat, transportation and warehousing, real estate transactions, agriculture and forestry, information and communications, and HoReCa are the next most profitable sectors.
Commenting on the results of the income tax campaign on legal entities, Anton Goncharuk (PFBC-Privat SRL) notes that the years 2023-2024 are not indicative in terms of determining the dynamics of income and expenses of companies. “It is difficult to judge about their growth or decrease, because in Moldova there is a two-year privilege for small and medium-sized businesses,” he says. – According to which such companies are granted a tax deferral until dividends are paid. It is necessary to analyze the accrued amount, because the discrepancy can be significant. If it turns out that the accrued tax is less compared to previous years, then we can talk about problems in the economy. This means that enterprises have no profit”.
To this we can add the depreciation allowance for fixed assets. On the one hand, we have depreciation for tax purposes approached financial depreciation, i.e. the difference that used to exist in firms making investments has disappeared. On the other hand, large companies were allowed accelerated depreciation of capital assets. And this may also have affected the results of the income tax campaign. Unfortunately, there are no statistics showing how many companies used this benefit, because it is a right, not an obligation of the enterprise. Therefore, it turns out that large companies that invested in development could show significantly more expenses and, accordingly, less income tax.
“That is, there are hidden factors that may not be included in statistical reports. And without their deciphering, in my opinion, it is difficult to draw conclusions on profit tax collections,” Goncharuk continues. – We often talk about the final figure and, when it is convenient, do not disclose secondary factors. Although they may be significant in terms of impact. Or even determinant.
– As far as I know, not all business entities have taken advantage of the income tax exemption for small and medium-sized businesses,” says Anton Goncharuk. – First of all, not everyone knows about it. Either the accountant did not inform the director, or the company’s management was afraid to do it because of procedural requirements. For example, if the company submitted a report not on March 25, but on the night of March 26, the state refuses to use the benefit. This is a formality, but there have been such precedents. And directors who counted on these funds had to urgently seek other funds. I believe that outreach work could be more active. When we talk about support for small business, we should explain both pros and cons, with an emphasis on the conditions of its provision”.
