News about Tax policy

The supply of tourism services in the Republic of Moldova will suffer, prices for services may rise, and businesses in the tourism and hospitality industries will face additional financial pressure if the standard 20% VAT rate is applied to food service and lodging.

The World Bank can provide the Moldovan government with specialized technical assistance in assessing the impact of reforms, phasing in tax changes, and analyzing compensatory measures.

As part of the fiscal and tax policy for 2027, the Ministry of Finance is proposing to repeal the provision requiring regulatory authorities to give advance notice of upcoming tax audits at businesses. Business representatives disagree with this change.

A flat VAT rate of 20% on natural gas, electricity, and heating will lead to the impoverishment of citizens and the weakening of the national economy. 

A number of opposition politicians, activists, and businesspeople gathered to protest in front of the parliament building. They are demanding that the government abandon the proposed changes to tax policy affecting agriculture, the hospitality and restaurant sector (HoReCa), and all other areas covered by the proposed bill.

On Sunday, June 28, a protest against the proposed new budget and tax policy will take place in front of the parliament building. The organizers are demanding that the VAT increase on essential goods and services be suspended. Participants are urged to attend the demonstration without any party symbols.

Although arrears owed to local budgets have exceeded 220 million lei over the past five years, the draft tax policy for 2027 does not include effective tools for city halls to enforce the collection of tax debts.

The list of jurisdictions with which Moldova automatically exchanges information on financial accounts will be significantly reduced. The relevant draft order has been developed by the Ministry of Finance and is open for public comment through July 6, 2026.

At this stage, the Ministry of Finance has decided against changing the mechanism for taxing wages. The decision was made following consultations with representatives of the Association of Accountants. Neither experts nor local authorities understood the reform.

U.S. President Donald Trump has threatened to impose 100 percent tariffs if any European country decides to impose a digital services tax on American companies.

The Ministry of Finance is scrapping certain provisions of the tax reform following public consultations and numerous comments. Ministry of Finance officials confirmed to Logos Press that the change to the payroll tax system will not be implemented in 2027, though it is not yet known when it might be introduced.

The city government has provided clarification on the procedure for paying property tax for this year. The deadline for payment is June 30, 2026.

The city administrations of the two capitals have assessed the financial impact on local budgets of the Ministry of Finance’s proposals included in the draft budget and tax policy for 2027. They warn that local authorities will be unable to perform their functions and fulfill their responsibilities to citizens to the same extent with drastically reduced budgets.

The Congress of Local Authorities of Moldova (CALM) has expressed its strong opposition to the draft budget and tax policy for 2027.

Following a meeting on June 25 between representatives of “Forța Fermierilor” and the Speaker of Parliament, a decision was made to suspend the farmers’ protests. This is because the farmers “received a signal… indicating a willingness to consider the possibility of not adopting the budget and tax policy with a 20% VAT rate.”

The road toll for trucks in Moldova has not been raised since 2014, even though the costs of materials, services, and wages have risen significantly over the past 12 years. Increasing this toll is an important prerequisite for shifting part of the freight traffic from road to rail.

A bill proposing amendments to the Tax Code and other Moldovan laws, scheduled to take effect on January 1, 2027, has sparked widespread debate within the professional community.

This change is included in a draft set of amendments proposed by the Ministry of Finance for inclusion in the ministry’s rules of procedure. They will soon be reviewed by the Cabinet of Ministers.

The European Commission today unveiled a new package of proposals to simplify tax rules. It is expected to save businesses 8 billion euros annually, including 3.3 billion euros in administrative costs.

They may be subject to the same tax treatment as other non-monetary benefits that an employer provides to employees (such as vouchers, gym and medical service passes, and gifts).