Taxes

There are 47 operational Tax Treaties for the Avoidance of Double Taxation signed by Moldova with other Moldova offers a relatively competitive, flat-tax system:

• Income tax: 12% flat rate for both individuals and companies.
• VAT: standard rate of 20%, with reduced rates (typically 8% and 0%) for specific goods and services, including exports and international transport.
• Withholding tax (before application of double tax treaties): 6% on dividends, 12% on interest, 12% on royalties.

Certain micro-enterprises may apply a simplified regime – a 4% tax on turnover up to a yearly threshold, under the conditions of the Tax Code.

Residents of the Moldova IT Park benefit from a single 7% tax on sales revenue, which replaces most standard corporate and payroll taxes.

Both employers and employees are liable for mandatory social security and health insurance contributions, with rates set annually by law; for 2024, employer social security contributions total 24%, and health insurance contributions amount to 9% in aggregate.

Moldova has signed over 50 double tax treaties, largely based on the OECD Model Convention, which often reduce the standard withholding tax rates depending on the treaty partner.