Moldova May Exempt Young First-Time Workers from Income Tax

MPs are proposing to exempt young workers’ salaries from income tax

MPs are proposing to introduce a tax relief measure for young workers entering into their first individual employment contract: their wages would be exempt from tax for one year. If approved, this measure could come into force on 1 January 2027.

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A draft bill by MPs from the Socialist Party has been tabled in Parliament. They propose introducing a provision into the legislation that expands the list of tax-exempt income for individuals. In particular, the authors of the draft propose amending Article 20 of the Tax Code to establish a tax relief scheme for young people under the age of 25 who are entering into their first individual employment contract.

However, they must meet several conditions. Their income must be earned in Moldova, and their salary must not exceed 25,000 lei per month. In this case, income tax will not be levied for a consecutive period of 12 months.

According to Socialist MPs, the tax relief will help to reduce unemployment and promote the legal employment of young people, as well as curbing migration, which is driven, amongst other things, by low pay at the start of their professional careers.

Thanks to this relief, they will have the opportunity to gain experience after leaving education. It will strike a balance between the expectations of employees and the interests of employers, who are not prepared, at the initial stage, to offer them a salary comparable to that of an experienced worker.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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