These amendments were approved in order to support entrepreneurial activity, more precisely, due to the fact that the threshold for registering enterprises as VAT payers in Moldova was increased to 1.7 million lei. The amendments were prepared in order to adjust the regulatory framework to this change and have already entered into force.
The amendments concern the subjects of Article 54¹ of the Tax Code. They stipulate that the preferential regime of four-percenters can be chosen by the companies that, as of December 31 of the previous tax period, received income on supplies exempted from VAT without the right to deduction up to 1.7 million lei. The condition for using this regime is that such supplies exceed 50% of all supplies.
Recall that the subjects of the SIMM regime are entities not registered as VAT payers, with the exception of peasant (farmer) farms, individual entrepreneurs, as well as entities whose share of income for the previous year from consulting on commercial activity and management issues is more than 60% of sales income.
The general taxation regime of 12% will be applied by entities that, as of December 31, received income from supplies exempted from VAT without the right of deduction in the amount exceeding 1.7 million lei.
