Fines and Penalties in Moldova: How They’re Calculated and When You Can Appeal

Fines and penalties in Moldova are one of the most common reasons businesses end up with “unexpected” budget arrears. Penalties are typically calculated automatically for each day of late payment, while fines are imposed for a specific breach (for example, late filing, errors in returns, or failure to comply with requirements during an audit or inspection).

This guide breaks everything down step by step: how penalties differ from fines, how penalties are calculated, which mistakes occur most often, and when you can realistically appeal the charges. At the end you’ll find a checklist on how to quickly verify the calculations and what documents to prepare for an appeal.

Important: rates and rules may change over time, so before doing any calculations, always verify the current indicators and the wording applicable to your period. If the amount is significant or the case is borderline, it’s better to run a recalculation and assess risks before paying the assessed charges.

Plain-language terms: a “penalty” is not the same as a “fine”

A penalty is the cost of paying late

A penalty applies when you don’t pay a tax/contribution/mandatory charge on time. The logic is simple: the state charges a daily amount for each day the money has not reached the budget.

• it accrues for each day of delay;
• it depends on the outstanding amount and the number of days;
• it is usually calculated automatically by the system (so it can appear “unexpectedly”).

A fine is a sanction for breaking the rules

A fine is a sanction for a specific violation: late filing of a return, incorrect data, missing mandatory documentation, ignoring inspection requests, etc. Unlike a penalty, a fine does not “accrue daily”—it is imposed based on the fact of the violation and is often recorded in an act/decision.

• it arises from a violation, not just late payment;
• it may be a fixed amount or calculated under specific rules (for example, a percentage of the underpaid amount);
• it is often backed by a formal document (decision/act/order).

Key nuance: you may face both a fine and a penalty

A common scenario: a company pays late (penalty) and also breaches a rule (fine). For example:

• you filed a return late → fine;
• the return shows tax due and you paid after the deadline → penalty for days overdue;
• as a result, the account statement shows two separate lines: fine + penalty.

In short: a penalty is for the time your payment is late; a fine is for the fact of a violation. Both can be checked for accuracy and, in some cases, appealed.

Legal framework: what tax authorities rely on when charging fines and penalties

To understand why a penalty or a fine was charged (and whether it can be appealed), you need to identify the exact legal basis used in the decision. In Moldova, such charges usually rely on several “layers” of regulation.

1) The Tax Code (Codul fiscal)

The Tax Code generally defines:

• the principle for calculating late-payment penalties (typically by days overdue and based on the amount due);
• types of tax violations and tax sanctions (fines) for specific actions/omissions: late filing, errors, non-payment, understatement, etc.;
• rules for interaction between the taxpayer and the tax authority (notices, requests, audits/inspections).

2) The Contravention Code / administrative liability (where applicable)

In some cases, fines may be administrative (for example, for responsible officers) and calculated in “conventional units.” This matters because:

• a fine may be imposed on the company and/or on a responsible individual;
• the amount depends on the number of conventional units and their value in MDL;
• the order/decision typically specifies the legal basis and the type of liability.

3) Administrative appeal procedure

Appealing charges (fines/penalties, audit decisions, acts) follows the administrative procedure rules. In practice:

• deadlines for filing an appeal are critical (missing them sharply reduces your chances);
• you can appeal on the merits (miscalculation/misclassification) and on procedure (breaches in process, reasoning, notice timelines);
• you need evidence: payments, calculations, correspondence, documents.

4) Practical documents you should always pull first

Before disputing the charges, gather the “baseline set” and compare it to what the decision states:

• budget settlement statement / debt extract (showing charges, dates, and legal grounds);
• decision/act that imposed the fine (if the fine is for the “fact of violation”);
• payment orders and bank statements (debit date/credit date, payment purpose, codes);
• filed returns (submission dates, amendments, submission receipts/confirmations);
• correspondence/notices from the taxpayer portal (if communication was electronic).

Why this matters: the right “legal norm + base document” immediately shows what to verify: dates, base amount, rate, period, classification of the violation, and procedural compliance.

How penalties are calculated: formula, daily rate, days overdue

A penalty is almost always calculated using the same logic: you have the outstanding amount, the daily rate, and the number of days overdue. It’s not enough to know the formula—you need to understand where errors most often appear: dates, base amount, the rate used, and partial payments.

General formula (useful as a separate block)

Penalty = Outstanding amount × Daily rate × Number of days overdue

Where:

• Outstanding amount is the unpaid portion of the obligation (tax/contribution/charge) on which the penalty accrues.
• Daily rate is the rate applied per day of delay (depends on the rules for the relevant year and the type of obligation).
• Number of days overdue is the number of days from the due date until actual payment.

How to count days overdue correctly

The most common reason penalties are overstated is incorrect day counting. The basic logic is usually:

• the count starts from the day after the legal due date;
• the penalty accrues until the date of actual payment (whether the payment day is included depends on the applicable rule and how the system records payment—always compare with the portal’s calculation);
• if you paid “later but on the same day,” the system may rely on the date the payment is credited/allocated (not necessarily when you clicked “pay”).

Practical tip: if you paid on time but the funds were credited on the next working day, a penalty may appear. In such cases, you need the payment order, bank statement, and the credit/allocation date.

Where the daily rate comes from

The daily rate is not arbitrary. It is determined by the rules in force for a given period (year) and is often linked to a base/reference rate and specific coefficients established for penalties.

• the rate may change year to year;
• different types of obligations (taxes vs. contributions) may have different rules;
• if the debt carries into the next year, it may matter which rate applies to which days (day-by-day).

What to verify: which rate was used (year/period) and whether it matches the type of obligation (e.g., tax vs. social contribution).

Special cases: partial payments and “penalty on the remaining balance”

If you pay the debt in installments, the penalty should:

• be calculated on the remaining balance after each partial payment;
• be recalculated by periods (before the partial payment—on a higher amount; after—on a lower amount).

A typical issue is when the penalty is calculated on the full amount for the entire period even after part of it has been paid (or when the payment was not correctly “identified” and allocated by the system).

Bottom line: to verify a penalty, check four things: the base amount, the rate, the dates, and whether partial payments were reflected correctly. If any one element is wrong, the penalty may be overstated.

Penalty calculation examples (3 cases)

Below are examples that help you quickly understand the logic. Note: the daily rate depends on the rules and indicators for the specific year, so in the examples it is shown conditionally (as a variable). For a real calculation, replace it with the daily rate applicable to your period.

Case 1 — short delay (7 days)

Situation: tax due — 50,000 MDL. You paid 7 days late.

What to check: whether the system counted days correctly (especially if there were weekends/bank delays) and whether the correct rate was applied for the relevant period.

Case 2 — partial payment (the penalty must be calculated on the remaining balance)

Situation: tax due — 100,000 MDL. After 10 days you paid 60,000 MDL; the remaining 40,000 MDL was paid 15 days later.

Typical issue: if the system did not “see” the partial payment (wrong payment purpose, code, or account), it may calculate the penalty on the full 100,000 MDL for the entire period. In that case, pull the payment order and request correct allocation/correction of the payment.

Case 3 — long delay (45 days)

Situation: debt 200,000 MDL. Delay — 45 days.

Important nuance: if the delay spans a year change, check whether the rate changes by period. In borderline situations, calculate day-by-day with a date breakdown.

How to use these examples: plug in your actual daily rate and dates, then compare the result with the amount shown in your budget settlement statement. If the difference is significant, move on to the “when you can appeal” section and prepare your evidence.

Most common business fines (and what triggers them)

While penalties are most often tied only to late payment, fines are sanctions for breaking the rules. Below are typical situations businesses face most frequently. In practice, it’s essential to review the exact wording of the violation in the decision/act—this determines the legal basis and the amount of the sanction.

1) Late filing of tax returns

The most common scenario: a return was filed after the deadline (or not filed at all), even if “tax due = 0”. A fine may apply simply for missing the filing deadline.

• late filing of a declaration/report;
• failure to file (not submitted);
• filing the “wrong form” or using the wrong channel (if a specific submission method is required).

2) Errors in returns and amendments that affected the tax due

Errors can be “technical” or “material.” Risk increases when an error leads to an understatement of tax or an incorrect tax base.

• wrong base/rate;
• wrong period;
• VAT errors (deductions, supporting documents, incorrect transaction codes);
• payroll tax errors (wrong employee status, incorrect calculations).

3) Late payment of taxes and contributions (when a fine appears in addition to a penalty)

In some cases, late payment can move from a purely financial consequence (penalty) to a legal one (fine), if the breach is classified as more serious (for example, repeated non-payment or significant arrears established in an audit/inspection).

• the debt remains unpaid for a long time;
• violations are repeated;
• tax authorities/inspectors identify underpayment or non-payment in an audit act.

4) Failure to comply with tax authority requests during an audit/inspection

Fines can also arise when a company:

• does not provide requested documents;
• provides an incomplete set;
• does not appear / does not respond within the deadline;
• does not ensure access to documents and supporting evidence.

Important: even if you provide the documents later, a fine may still be imposed for missing the deadline/procedure.

5) Liability of responsible officers (in certain cases)

Sometimes sanctions can apply not only to the company but also to responsible individuals (e.g., the director/chief accountant), depending on how the violation is classified and which legal norm applies. This is especially relevant where fines are calculated in “conventional units” and issued as a separate order.

Practice tip: to assess risk and appeal prospects correctly, always record: what the fine is for (exact wording), which period, which base document (act/decision), and which calculation (if applicable).

When charges can be appealed: 8 common grounds

Appealing makes sense when you see the charges were assessed without proper grounds or with errors: wrong dates, amount, rate, classification of the breach, or procedural issues. Below are the most common grounds seen in practice.

1) Error in the overdue period (days counted incorrectly)

A penalty may be overstated if:

• the wrong start date was used (e.g., counted from the due date instead of the next day);
• the system did not account for an earlier payment (paid earlier but reflected later);
• the system counted days up to the “allocation” date even though you can prove timely payment.

2) Error in the calculation base (penalty calculated on the wrong amount)

A typical case is when the penalty is calculated:

• on an amount already paid (partially or fully);
• on an obligation later corrected (amended return);
• on the wrong type of payment (code/purpose mismatch).

3) Incorrect rate applied

Grounds for appeal if:

• the rate from the wrong year/period was used;
• the rate does not match the type of obligation (tax vs. contribution);
• the calculation does not explain which rate was used and where it comes from.

4) Duplicate charges

Sometimes “duplicate” lines appear in the statement:

• the penalty is charged twice for the same debt/period;
• a fine is duplicated after data updates;
• after a correction, the system did not remove the previous charge.

5) Payment was made, but not correctly identified/allocated by the system

A very common cause of disputed charges. The payment may have been made but not allocated correctly due to:

• incorrect payment purpose;
• wrong code/details;
• allocation to the wrong period or wrong obligation type;
• technical delays at the bank/treasury.

Key evidence here: payment order + bank statement + confirmation of credit/allocation.

6) Procedural violations during an audit/inspection or when issuing the decision

Even if the dispute is not about the amount but about procedure, it may still be a valid ground:

• improperly drafted decision/act;
• lack of reasoning (why this specific legal norm was applied);
• breach of notification rules/deadlines;
• inconsistencies between the act and the calculation.

7) Misclassification of the violation

Sometimes a breach is classified more harshly than warranted. Examples:

• a technical mistake is treated as avoidance/evasion;
• a correction is treated as understatement despite supporting evidence;
• the transaction type/object is identified incorrectly (especially for VAT).

8) Documented circumstances that affect the charge

Grounds may include circumstances you can prove with documents:

• electronic system failures (confirmations/screenshots/notices);
• bank delays (bank letter/statement);
• corrections by the tax authority that changed the calculation base.

Core appeal logic: you prove either that no violation occurred, or that the amount was calculated incorrectly, or that procedure was breached. The stronger your documents and your own recalculation, the higher your chances of success.

How to appeal a fine/penalty: step-by-step algorithm

For an appeal to work, act based on documents—not emotions: recheck the calculation, collect evidence, and file under the correct procedure. Below is a universal algorithm that fits most fine and penalty situations.

Step 1 — reconcile charges and run your own check

First, make sure you clearly understand what was charged and why:

• download/save the budget settlement statement (or debt extract) showing the charge lines;
• determine whether it’s a penalty, a fine, or both;
• verify the period and the amount the charge relates to;
• prepare your own recalculation (penalty formula or fine logic).

Goal: reach a clear conclusion—“error in days/amount/rate/classification/procedure.”

Step 2 — collect an evidence pack

The more precise the pack, the higher your chances of revision. Usually you need:

• payment orders + bank statements (debit date, credit date, payment purpose);
• receipts/confirmations of return submissions (date and acceptance confirmation);
• copies of returns and amendments (if you filed corrections);
• the decision/act/order stating what the fine is for and the legal basis;
• your written recalculation (table or short calculation block);
• if needed—portal correspondence/screenshots (especially for system outages).

Step 3 — file the request/appeal under the correct procedure

Next, submit a formal request to review the charges. The general approach:

• appeal a specific charge (decision number/date or a specific line in the statement);
• state the grounds (calculation error or no violation);
• attach evidence and your recalculation;
• state your request: cancel/recalculate/correct allocation of a payment/cancel the fine.

Critical: meet the deadlines and define precisely what you are appealing (decision, act, calculation, refusal to allocate, etc.).

Step 4 — what to include in an appeal: a working structure

To make the appeal read like a proper document, use this outline:

1. Intro: who you are (company/individual), details, contacts.
2. Subject: what you appeal (penalty/fine), period, and base document.
3. Facts: payment/submission deadlines, what you did, amounts.
4. Error/grounds: what exactly is wrong (days/amount/rate/allocation/classification/procedure).
5. Recalculation: short formula/table and result.
6. Evidence: list of attachments (payment orders, statements, receipts, etc.).
7. Request: cancel/recalculate/remove the charge/correct allocation.
8. Signature and date.

Step 5 — if the first attempt doesn’t work: what next

If the charges are not revised, there are usually two practical routes:

• submit an additional clarification (if the issue is allocation/codes/period) and refile the pack;
• move to the next level of protection (depending on procedure and the base document)—in such cases it’s better to involve a specialist to avoid missing deadlines or making procedural mistakes.

Practical tip: if the amount is material, start with a consultation and recalculation. Often it’s enough to correctly re-allocate a payment or prove the credit date for the penalty to be removed without a lengthy dispute.

How to avoid fines and penalties: prevention checklist

The best way to avoid disputes over charges is to prevent them in the first place. Below is a practical checklist that significantly reduces the risk of fines and penalties—especially for companies that outsource accounting or have recently changed responsible staff.

1) Set up a compliance calendar (payments + filings)

• list all recurring deadlines (taxes, contributions, reporting);
• set reminders 3–5 days before each due date;
• account for weekends/holidays and bank processing delays (ideally, pay in advance).

2) Double-check payment details and codes — a common cause of penalties

• use current payment details and correct payment codes/purpose;
• keep templates for payments by tax type (to avoid manual errors);
• if the payment was sent but does not appear in the system, immediately pull proof and initiate clarification/correct allocation.

3) Reconcile with the budget monthly (10–15 minutes)

At least once a month:

• download the budget settlement statement or an obligations extract;
• check for “negative balances,” unusual charges, or duplicates;
• reconcile payments for key taxes (especially VAT/payroll/contributions).

4) Keep documents organized (your best defense in a dispute)

• payments folder: payment orders + bank statements + credit/allocation confirmations;
• filings folder: returns + submission receipts/confirmations;
• correspondence/notices folder from the taxpayer portal (if communication is electronic).

5) Internal control once per quarter: a “mini-audit” of key areas

If your business is growing, hiring staff, or running active VAT operations, do a quarterly check of:

• VAT (deductions, supporting documents, transaction codes);
• payroll and HR (calculations, statuses, contracts, timesheets);
• accuracy of liabilities and timely payments.

6) After changing accountants — do a formal handover of the “base”

The highest risk of fines and penalties is right after an accountant leaves. Minimum set:

• a handover-acceptance record (or a takeover checklist);
• access credentials (portals, bank, software);
• budget reconciliation and review of any open/unclosed periods.

In short: a calendar + correct payments + monthly reconciliation + organized proofs = minimal fines and penalties. And in any non-standard situation (accountant change, higher volumes, lots of VAT operations), it’s better to involve a review/consultation in advance.

FAQ — Frequently asked questions

Conclusion: how to reduce fines and penalties and protect your position

Fines and penalties most often arise for three reasons: delays, filing errors, and incorrect payment allocation. The good news is that a significant portion of these charges can either be prevented (calendar + reconciliation + organized documentation) or successfully appealed if there are mistakes in dates, amounts, rates, or procedure.

Practical action plan: first run a recalculation and reconciliation (dates → base → rate → payments), then collect evidence and file a request with clear logic and attachments. The more precise your calculation and documents, the higher the chance the charges will be revised without a long dispute.

If you want to quickly assess whether there are grounds for recalculation, we can help you:

• review the budget settlement statement and payments,
• recalculate penalties for your period,
• assess fine-related risks and appeal prospects,
• prepare the appeal structure and supporting documentation package.

Need a review of your charges? Message us — we’ll analyze your case and propose a clear action plan (without unnecessary bureaucracy).