What previously was impossible and not foreseen by local
legislation is now possible. Starting 1 January 2017, the Tax Code
of Moldova (the "Tax Code") was amended
by Law 281/2016 to include a separate norm (Art. 136ą) on
individual tax rulings ("ITR") for the
benefit of entrepreneurs. Within the limits of its scope and in
respect of a concrete beneficiary, an issued ITR is binding on the
State Tax Service (the "STS"). The
Government and the Ministry of Finance are expected to approve the
secondary legislation to regulate the details of the procedure.
Who can apply for an ITR?
Any individual and/or legal entity doing business (an
"entrepreneur") has the right to apply for an ITR.
Although non-residents are not prohibited from applying for an ITR,
to qualify as an entrepreneur, they need to demonstrate an
intention to earn income or that they receive income in Moldova,
regardless of the type of business.
Among other things, each application must contain a description
of the precise tax obligation in respect of which an ITR is being
Where to apply and how much does it cost?
Applications are filed directly with the STS. The factual
situation and/or transaction in respect of which an ITR is
requested must be presented in sufficient detail to the STS and
must not be implemented yet.
Fees payable into the state budget for an ITR are:
MDL 60,000 for large taxpayers (the
tax files are kept by the General Directorate for Administration of
Large Taxpayers); and
MDL 30,000 for other categories.
Under the general rule, an applicant can request restitution of
the fee paid if the STS rejects its application. The secondary
legislation, which is expected any day now, will likely regulate
other situations related to the fee (e.g. withdrawal of
The fee will likely be tax deductible for cases in which an ITR
is received, as this cost is directly related to the
applicant's business activity.
Timing and examination
Applications for an ITR will be examined and a decision issued
within 90 days of receipt of the complete application. The STS may
request additional information, documents and proof from the
applicant (the 90-day deadline will be suspended while the STS
awaits the applicant's response).
The secondary legislation is expected to regulate aspects such
as: (a) the exact moment the STS confirms that an application is
complete; (b) the possibility to consult the STS before a formal
application; (c) the period of time within which the applicant will
have to communicate additional information, etc.
Effects of an ITR
Each ITR will be included in a
register kept by the STS.
Within the limits of its scope and in
respect of the concrete beneficiary, an ITR will be binding on the
STS and other national tax administration bodies (e.g.
The ITR shall remain binding as long
as (i) its beneficiary fulfils the conditions for its issuance, and
(ii) the tax legislation on which it is based remains
Upon changes to the tax law, the ITR
will lose its validity. Nevertheless, the STS is obliged to
communicate the change in legislation to the beneficiary, including
the date as of which the changes will enter into force, and the
beneficiary will have 60 days from receipt of notice of the change
to adjust its business to the new legislation.
These recent amendments will have a clear benefit on the
business climate in Moldova. The days when entrepreneurs had to
base their transactions on non-binding tax rulings are over. From
now on, a carefully structured and well-intentioned transaction,
communicated in advance to the STS, has every chance of receiving
an ITR. The sooner the local government and the Ministry of Finance
pass clear and straightforward secondary legislation the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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