The relevant amendments to the Tax Code have been officially published and have come into force. Through their implementation, the state is creating the conditions for the development and maintenance of irrigation and drainage systems in Moldova.
How the concession works
It should be noted that the new exemption applies to associations managing such systems under agreements for the transfer of land for use free of charge, provided they form part of a centralised irrigation system. In this case, they are exempt from paying property tax for the period during which such a system is not operational.
In particular, Article 283 of the Tax Code has been amended to include provisions setting out the conditions under which associations may benefit from the relief. It has been established that the decision on the operation of the centralised system is to be taken annually by 1 March by order of the Director of the National Agency for Land Reclamation. Within 10 days, this document is forwarded to the State Tax Service and the local authority of the settlement in whose territory the system is located.
The legislation specifies the procedure for the restoration or replacement and write-off of irrigation system infrastructure transferred for use free of charge.
Furthermore, in accordance with amendments to the Law on Local Public Administration, the right of superficies for the construction or restoration of irrigation system infrastructure—recognised as works in the public interest—may be established free of charge on land held in public ownership by the local authority.
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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