Moldova has made considerable progress in developing a tax system which in former Soviet times did not exist. Unlike other former Soviet republics which have to a considerable extent followed the Russian model, Moldova has preferred to create its own system with assistance from outside agencies. The main taxes are profit tax, VAT, personal income tax and property tax.
In common with other members of the CIS, however, Moldova introduces frequent and significant changes to its tax system, with 1995 as no exception. During the year, new VAT and excise laws have been adopted and Instructions of the Ministry of Finance (the documents which describe the practical application of the law for the local tax authorities and taxpayers) issued.
The law on profit tax is complex, with many provisions subject to detailed conditions, although as a consequence there is perhaps less scope for argument and uncertainty. With regard to enterprises in which there is foreign investment, tax holidays and exemptions are provided.
Coopers & Lybrand
Coopers & Lybrand provides accounting, taxation and consultancy advice to companies and governmental bodies in the CIS as well as to overseas companies investing into the CIS.
This publication is intended for general guidance only and should not form the basis of specific decisions.
For further information contact the firm on +750 2225 8600, or enter text search 'Coopers & Lybrand' and 'Business Monitor'.