Moldova to calculate 0.5% construction levy for each project

A 0.5 per cent tax in the construction sector will be levied on each project

A new deadline for payment of the levy has also been set – by 25 March of the year following the reporting year. When drawing up cost estimates, it is proposed that this amount be included prior to the calculation of VAT. The new legislative provisions have been published and have come into force.

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Individuals who are investors in construction works for the erection of detached or semi-detached houses intended for personal use are exempt from this levy. The tax is also not payable on projects funded from the national public budget;

The Regulations have been brought into line with the provisions of the Urban Planning and Construction Code and the Law on the National Fund for the Development of the System of Regulatory Documents in Construction.

Overall, the amended Regulations on the Administration of Funds for Financing the Regulatory Framework in Construction revise the procedures for administering this fund.

It should be noted that funds are transferred to the state budget to finance the System of Regulatory Documents in Construction, based on the volume of investment in fixed assets carried out in the relevant year.

The regulations also stipulate an obligation for investors to prepare, separately for each project, information on the calculation of contributions to finance the construction regulatory framework in accordance with the standard form approved by the State Tax Service.

As previously reported by Logos Press, the regulations specify that free and unrestricted access to regulatory documents in the construction sector will be ensured through their publication on the ednc.gov.md website under the ‘Normative’ section.

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