With the adoption of the fiscal and customs policy in 2020 in Moldova, local taxes were capped and their maximum size was established in the medium term (2021-2023).
This measure was taken to ensure the fiscal predictability of local taxes and that of entrepreneurial activity.
The new fiscal regulations presuppose that at the law level (Fiscal Code) the maximum quota of local taxes is provided, and local public authorities have the right to establish the concrete quota of local tax when adopting the budget of the administrative-territorial unit, which cannot be higher than the maximum quota.
Local taxes, the maximum size of the quotas, the terms of payment and presentation of the fiscal reports can be consulted in the annex to title VII of the Fiscal Code.
Recommendation – To bring the changes to the attention of the finance and accounting department and to consult with the local tax authorities.