Some entrepreneurs of this category note that in some countries such taxes are lower, so in Moldova the new status is not attractive enough.
In this context, it is worth noting that the value of the single tax for freelancers grew as the new regime was being developed. Initially, it was planned that it would not exceed 10%, then the tax was set at 12%, but at the final reading in the Parliament its size increased to 15%.
Experts also criticize the income threshold for freelancers, set as a condition for their application of the single tax. Such a maximum should be higher, taking into account the fact that the activities of freelancers may have a non-permanent, seasonal, etc. character, they note. Recall that the legislation stipulates that the single tax rate will be 15%, if the annual income of a self-employed entrepreneur does not exceed 1.2 million lei. Otherwise, a single tax rate of 35% is applied to the exceeding part of the income.
In addition, the draft specifies: if the freelancer’s annual amount allocated for MHI insurance premiums does not cover the fixed amount set for this category of payers, he will have to pay the difference.
Given the statistics, according to which the number of freelancers has almost doubled in the last few years, representatives of the new tax regime propose to introduce additional incentives for them. Such as, for example, deductions for expenses for participation in conferences, for training, etc., similar to those that work in neighboring Romania.
The Ministry of Finance believes that the single tax is sufficiently balanced in that it implies a lower tax burden, especially on the social fund, compared to other categories of entrepreneurs working in Moldova.
As single tax payers, independent entrepreneurs are not obliged to keep accounting records, as well as to submit tax declarations, statements and reports to the state authorities. But at the same time they must use modern devices for accounting of cash payments – mobile applications that combine the functions of POS-terminal and cash control equipment.
Freelancers may provide services and engage in professions from the Classifier of Activities, which will be contained in government-approved lists. The lists will be periodically revised based on the results of monitoring and dialog with the business community. The list may include both representatives of the service sector – tutors, nannies, translators, accountants, auditors – and creative professions.
It is proposed to authorize freelancers in 34 fields and for 68 names of different professions. An independent entrepreneur will not have the right to engage third parties to participate in the provision of services, as well as the right to deduct business expenses. But he will be able to work without restriction in one or more fields or professions at the same time, with exceptions expressly provided for by law. And will be entitled to provide services to both individuals and legal entities.
