From next year, new rules of payment of the territory improvement fee will come into force in Moldova. Now it is paid by citizens registered at the address of residence, and from 2026 local authorities will be able to decide who will pay it to the local budget – registered residents or property owners. This was announced last week by the State Tax Service.
As noted by the Congress of Local Authorities (CALM), this was insisted on by representatives of local authorities. There were problems with the taxable base for this tax due to the lack of accurate data on real estate. The change will simplify its determination, especially in rural areas, the organization hopes.
The State Tax Service specifies that local governments will be able to determine only one payer of this annual fee – either registered tenants or homeowners. If local authorities decide that the tax will be paid by homeowners, they will simultaneously determine who should pay the tax when the property belongs to several citizens.
The tax will need to be paid by September 25. Payers will receive notices at least 15 days before this deadline.
Improvement levy is a local tax set by local authorities to finance works to improve the territory – road repair, landscaping, installation of benches and urns. Depending on the region, the rates and payment rules may vary. As a rule, now the fee is paid by owners of houses or apartments. At the same time, the rates and rules of collection are set by local authorities.
