Annual Reporting: What You Need to Know to Avoid Fines

Annual reporting is a mandatory procedure for all legal entities in Moldova, regardless of business size or tax regime. The timeliness and accuracy of your submissions impact not only your company's reputation but also help avoid fines, account blocks, and other penalties from regulatory bodies.

Many entrepreneurs underestimate the importance of proper reporting and face unpleasant consequences — from administrative fines to operational restrictions.

In this article, you’ll learn:

• which reports must be submitted by law;
• what fines and penalties apply for mistakes or delays;
• how to avoid sanctions and protect your business;
• what tools and solutions help you file on time.

What Types of Annual Reports Must Be Submitted

Annual reporting is a set of documents that a company must submit to relevant authorities at the end of the fiscal year. Late or incorrect submission can lead to serious consequences.

Main types of reports:

• Financial statements — include the balance sheet, profit and loss statement, and cash flow statement. Submitted to the National Bureau of Statistics and, if required, published in public sources.
• Tax declaration — includes information on income, expenses, VAT, income tax, and social and medical contributions. Submitted to the State Tax Service.
• CNAS and CNAM reports — submitted to confirm payment of contributions for employees (social and health insurance).
• Statistical reporting — periodic submission of forms to the National Bureau of Statistics depending on activity type and number of employees.
• Audit report — for companies subject to mandatory audit (based on turnover, assets, or legal form).

The deadline for most reports is March 31 of the following year. Even if there was no activity, a zero report must still be filed.

What Penalties Are Imposed for Violations

Failure to submit annual reports on time or in the required format can result in serious penalties for both the legal entity and responsible individuals (such as the director or accountant).

Possible fines:

• For late submission of reports — from 3,000 to 10,000 MDL, depending on the authority (Tax Office, CNAS, CNAM, Bureau of Statistics).
• For failure to submit reports — company accounts may be blocked and operations suspended.
• For errors in tax or accounting documents — recalculations, penalties, fines, and administrative liability.
• For missing mandatory audit — fines up to 20,000 MDL and possible disqualification of company management.

Example: if the CNAS report is not submitted on time, a fine of up to 5,000 MDL may be imposed, and previously paid contributions may not be credited. Late tax declarations result in daily penalties.

Important: Technical issues or force majeure do not always exempt from liability. All situations must be documented and supported with evidence.

How to Avoid Fines: Step-by-Step Guide

To avoid issues with regulatory authorities, it’s important to prepare in advance for submitting your annual reports. Here's a basic action plan:

1. Check required reporting forms

• Create a list of all reports your company must submit according to the law;
• Double-check deadlines — they may change each year.

2. Ensure data accuracy

• Reconcile taxes, contributions, and other obligations;
• Verify consistency between accounting and tax records.

3. Prepare for a possible audit

• Determine whether your company falls under mandatory audit requirements;
• If yes — sign a contract with an auditing firm in advance.

4. Use digital tools

• Reporting can be submitted through online systems (MConnect, Raportare.md);
• Track legal updates via SFS, CNAS, and CNAM portals.

5. Consult with experts

• If you're unsure — it's better to hire an outsourcing firm or experienced accountant;
• It’s cheaper to prevent mistakes than to fix them later.

When to Outsource Annual Reporting

Filing annual reports requires accuracy, legal knowledge, and attention to detail. For many businesses, outsourcing this task is simpler and more reliable.

Outsourcing annual reporting means:

• Saving time and resources. No need to spend hours learning the law and filling out forms;
• Lower risk of penalties. Professional accountants understand all nuances and meet deadlines;
• Support during inspections. Experts assist in responding to requests from SFS, CNAS, and CNAM;
• Confidence in data accuracy. All forms are double-checked before submission.

Outsourcing is especially beneficial for:

• Small and medium businesses without in-house accountants;
• Startups and new companies unfamiliar with local laws;
• Directors managing both administrative and financial roles.

Companies that use outsourcing nearly eliminate the risk of fines due to delays or mistakes.

Conclusion

Annual reporting is not just a formality, but a legal obligation that affects the stability and compliance of your business. Submitting all required forms accurately and on time helps avoid fines, account blocks, and reputational damage.

To avoid mistakes:

• Plan your reporting process in advance;
• Stay updated with legislative changes;
• Delegate the task to professionals if needed.

Don't risk your business to save time or money. A consultation with experts or outsourcing your reporting is an investment in your company’s stability.