Moldova Changes Local Tax Rules Starting in 2027

The rules for setting local charges have been amended

Local councils are not permitted to increase local tax rates during the year and are required to approve them at least 30 days before the start of the tax year.

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When setting these rates, local authorities must take into account local factors, such as area, location and type of activity, to prevent a disproportionate tax burden.

A further provision stipulates that local authorities are obliged to ensure that public consultations are held at least 15 working days before the rates are approved.

The new deadlines and procedures for setting local levy rates by local public authorities are set out in paragraph (8) of Article 297 of the Tax Code. The provisions will come into force on 1 January 2027 and form part of the package of tax policy amendments for 2027, approved by Parliament.

New framework for public amenities and temporary residence charges

Furthermore, the article has been supplemented by paragraph (2¹), which sets out a new rule for situations where a local council fails to approve a decision within the statutory time limit or where such a decision is overturned by a court. In such cases, the local levy rates set for the previous year shall apply in the following tax year. This provision will come into force on the date of publication of the Act.

Another amendment concerning local charges stipulates that the average number of employees on the payroll for the half-year shall be used as the tax base for the land improvement charge. Currently, this is determined on a quarterly basis.

The changes will also affect the determination of the tax base for the temporary accommodation levy. This will be based on the number of units actually provided by organisations engaged in the accommodation of visitors. The levy will be charged on each taxable unit. At present, it is calculated as a percentage of the income from the sale of accommodation services.

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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