The amendments are proposed with the aim of further promoting the new regime and extending it to all types of business activities.
As previously reported by Logos Press, the Ministry of Finance intends to establish two basic tax regimes for business activities in Moldova: the general regime and the independent entrepreneur (freelancer) regime.
Therefore, starting next year, it is proposed to expand the list of activities permitted for freelancers.
Limit annual income to 1 million lei
In addition, the draft provides for a revision of the income threshold and tax rates. Thus, to apply the 15% flat tax rate, annual income must not exceed 1 million lei. As a reminder, today it stands at 1.2 million lei. If income exceeds 1 million lei, the tax rate may be reduced from the current 35% to 30%.
In addition, it is proposed to revise the rules governing the deduction of expenses incurred by businesses when working with freelancers.
Specifically, legal entities and individuals engaged in business activities will be permitted to engage freelancers up to 3% of their annual payroll.
Accordingly, expenses incurred by a person as a result of entering into contracts with them will be deductible for tax purposes within the specified limit. Anything exceeding this limit will be taxed at a rate of 15%.
