In 2024 and 2025, significant changes in Moldova's tax legislation will come into effect, affecting both individuals and businesses. Increases in personal deductions, adjusted tax rates, and new reporting requirements demand careful attention and timely preparation. In this article, we’ll break down the key updates, explain their impact on salaries, business taxation, and accounting, and offer practical recommendations for compliance.
Changes that entered into force in 2024
As of January 1, 2024, the Republic of Moldova implemented changes enacted by Law No. 311 of December 26, 2023. These reforms affect both income tax and corporate taxation. The goal is to align the tax system with current economic conditions and improve transparency in reporting.
Main updates for 2024:
- Expanded threshold for uncollectible debts – companies may now write off debts up to 2000 MDL (previously 1000 MDL) without a court decision.
- Tax exemption for certain employee gifts – gifts valued up to 260 MDL are no longer taxable.
- Streamlined communication with tax authorities – the new FlagMAN-D digital system allows faster document submission and response from the SFS.
- Changes to reporting forms and deadlines – new electronic forms have been introduced and response times have been shortened.
These measures aim to improve tax administration efficiency, reduce the administrative burden on businesses, and strengthen interaction with the tax authority.
Tax Changes in 2025
Starting January 1, 2025, Moldova will implement changes approved by Law No. 214 and other regulations. These changes affect both individual taxpayers and legal entities, covering income tax, property tax, local charges, road fees, and excise duties.
Main updates:
- Updated property tax rates: In 2025, revised valuation coefficients are introduced, with changes in taxation methods for both residential and commercial real estate.
- Increased local fees and expanded categories: local authorities now have more power to set rates and introduce new types of charges.
- Revised road fees: higher rates for foreign-registered vehicles and new calculation methods for commercial transport.
- Clarification of the natural resource tax and environmental fee: now calculated using more accurate methodologies, with stricter penalties for non-compliance.
- Adjusted excise duties on fuel, tobacco, and alcohol: indexed in line with inflation and the EU Association Agreement requirements.
- These measures aim to increase local revenues, improve environmental standards, enhance fiscal discipline, and align legislation with international norms.
Income Tax: Rate, Exemptions, and Examples
In 2025, the income tax in Moldova continues to be applied at a flat fixed rate of 12%. However, increased personal and additional exemption thresholds make taxation more favorable for individuals.
Main parameters:
- Personal exemption increased from 27,000 MDL in 2024 to 29,700 MDL in 2025 (about 2475 MDL per month).
- Dependent exemption — 825 MDL per month.
- Spouse exemption (if the spouse has no income) — 1815 MDL per month.
- Additional exemption — 34,620 MDL per year for special categories (Chernobyl liquidators, disabled persons, veterans, etc.).
Tax calculation example:
Suppose an employee earns a gross salary of 10,000 MDL per month. The income tax calculation would be:
- Social security contribution — 10%: 1000 MDL.
- Health insurance contribution — 9%: 900 MDL.
- Personal exemption — 2475 MDL.
- Taxable income = 10,000 – 1000 – 900 – 2475 = 5625 MDL.
- Income tax = 12% of 5625 = 675 MDL.
Thus, from a gross salary of 10,000 MDL in 2025, the employee pays about 675 MDL in income tax — around 90 MDL less than in 2024.
These updates increase employees’ net income and offer more financial flexibility for families with dependents.
Changes for Businesses: Corporate Taxation
In 2025, a series of changes were introduced for legal entities, aimed at clarifying accounting rules, expanding tax deduction options, and adapting corporate reporting to new standards.
Key changes:
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Write-off of uncollectible debts: companies can write off debts up to 2000 MDL without court proceedings, provided the collection term has expired. This reduces the tax burden and simplifies financial planning.
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Tax exemption for employee gifts: gifts up to 260 MDL per employee are now tax-exempt.
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Expanded tax deductions include:
- expenses for professional training of employees;
- reimbursements for meals and transportation;
- medical insurance expenses within the legal limit.
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Updated reporting forms and deadlines:
- introduction of new electronic declaration templates;
- shortened submission and correction periods;
- integration with SFS digital platforms (including FlagMAN‑D).
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Foundations for international compliance:
- reforms include transfer pricing and reporting of transactions with foreign related parties;
- preparation for BEPS (OECD’s Base Erosion and Profit Shifting initiative).
These measures simplify tax administration, increase system transparency, and encourage businesses to operate officially and openly.
Tax Benefits and Regimes: How to Apply
In 2025, tax benefits available to both individuals and legal entities remain in force and are further clarified. Proper use of these benefits helps reduce tax burdens and improve business financial performance.
For individuals:
- Combining personal exemptions — personal, spouse, and dependent exemptions can be applied simultaneously. Note: the spouse exemption applies only if the spouse has no income.
- Additional exemptions for vulnerable categories — such as Chernobyl liquidators, people with disabilities, and veterans. These groups are eligible for an increased exemption of up to 34,620 MDL per year.
- Application procedure — reported via form CET18, submitted by the end of April of the following year. At employment, exemptions are granted based on the CET15 form.
For legal entities:
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Preferential tax regimes:
- IT Park — a fixed 7% tax rate on revenue, with exemptions from VAT and other taxes under certain conditions;
- Single tax regime for microenterprises with turnover up to 1.2 million MDL;
- VAT exemption on equipment imports for investment projects.
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Hiring incentives for socially vulnerable groups — expenses for such employees may be fully deductible, with additional deductions in some cases.
Recommendations:
- Regularly monitor updated regulations on the websites of the SFS and Ministry of Finance;
- Consult a tax advisor before applying regimes or benefits, especially for international activities;
- Maintain clear documentation for each benefit applied.
Proper use of available tax benefits provides a legal and effective way to optimize taxes for both employees and businesses.
How to Prepare for the Changes
The introduction of new tax rules requires proactive preparation from both businesses and individuals. This is especially important since failure to comply on time may lead to fines and penalties.
What you should do now:
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Analyze your current accounting and tax reporting status:
- Conduct an internal audit to ensure compliance with the new requirements.
- Check the relevance of reporting forms and templates currently in use.
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Update internal regulations and procedures:
- Revise payroll policies to reflect new exemption thresholds.
- Clarify travel, gift, and reimbursement policies.
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Adjust information systems:
- Update accounting software to reflect new tax rates and deductions.
- Integrate tax reporting with new digital requirements, including the FlagMAN‑D system.
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Train your staff:
- Organize training for accountants and HR personnel on the new requirements.
- Ensure understanding of how to apply exemptions and tax benefits.
Support from IntelCont:
- Conducting an express audit and preparing an adaptation plan;
- Personal consultations on applying tax regimes and exemptions;
- Assistance in preparing and submitting updated tax reports;
- Automation of tax calculations and creation of document templates.
Proper preparation helps avoid penalties, minimize risks, and fully benefit from the new tax policies.
Conclusion
Tax law changes introduced in Moldova in 2024 and scheduled for 2025 cover a wide range of areas: from income tax and social deductions to corporate tax benefits and new taxation regimes. These reforms aim to improve tax transparency, align the system with European standards, and support economic growth.
For individuals, this means higher real income due to increased exemptions. For businesses, it requires a thorough review of tax strategies, accounting policies, and reporting to comply with the new rules and avoid penalties.
IntelCont is ready to be your trusted partner in adapting to these changes. We provide full support — from consultations and in-depth analysis to automation and preparation of accurate tax reports.
Prepare for the new requirements in advance — this will help you avoid errors and take full advantage of the available tax benefits.
