LAW OF THE REPUBLIC OF MOLDOVA

of December 29, 2022 No. 356

About modification of some regulations

The Parliament adopts this organic law.

This law partially shifts:

- Regulations (EU) No. 952/2013 of the European Parliament and Council of October 9, 2013 about introduction of the Customs code of the Union (processed), published in the Official magazine of the European Union by L 269 of October 10, 2013, with the changes made by Regulations (EU) 2019/632 European Parliament and Council of April 17, 2019;

- The delegated regulations (EU) 2015/2446 Commissions of July 28, 2015 supplementing Regulations (EU) No. 952/2013 of the European Parliament and Council concerning the detailed rules concerning some provisions of the Customs code of the Union published in the Official magazine of the European Union by L 343 of December 29, 2015 with the changes made by the Delegated regulations (EU) 2021/1934 Commissions of July 30, 2021;

- Implementation regulations (EU) 2015/2447 Commissions of November 24, 2015 about establishment of rules of realization of some provisions of Regulations (EU) No. 952/2013 of the European Parliament and Council about introduction of the Customs code of the Union published in the Official magazine of the European Union by L 343 of December 29, 2015 with the changes made by Implementation regulations (EU) 2021/235 Commissions of February 8, 2021;

- Regulations (EU) No. 1186/2009 of Council of November 16, 2009 about establishment of system of exemption of customs duties on the territories of Community (the codified version) published in the Official magazine of the European Union by L 324 of December 10, 2009;

- The directive of Council 2007/74/EU of December 20, 2007 about tax exemption on the value added and excise on the goods imported by persons arriving from the third countries published in the Official magazine of the European Union by L 346 of December 29, 2007;

- Regulations (EU) No. 608/2013 of the European Parliament and Council of June 12, 2013 about the protection of intellectual property rights performed by customs authorities and about cancellation of Regulations (EU) No. 1383/2003 of Council published in the Official magazine of the European Union by L 181 of June 29, 2013.

Art. I. - In the Law on entrepreneurship and the companies No. 845/1992 (Monitor of Parliament of the Republic of Moldova, 1994, No. 2, of the Art. 33), with subsequent changes, to make the following changes:

1. In Article 7:

in paragraph one to replace the word "shall:" with the word "shall:";

in paragraph five of the word "in banks and/or payment societies" shall be replaced with words "in the banks, payment societies, societies issuing electronic money and/or at suppliers of post services".

2. To add Item 5 of article 10 after the words "and also when implementing calculations" with words "non-bank credit institutions and/or".

3. In Item 1 of Article 27 of the word "according to the Law on state registration of the companies and the organizations No. 1265-XIV of October 5, 2000." shall be replaced with words "according to the Law on state registration of legal entities and individual entrepreneurs No. 220/2007.".

Art. II. - Item 1 of appendix 3 to the Law on highways No. 509/1995 (repeated publication: 2018, Art. No. 7-17, 32), with subsequent changes to add the official monitor of the Republic of Moldova with subitems 6) and 7) of the following content:

"6) objects of outdoor advertizing;

7) trade and economic objects (warehouses, agricultural refrigerators).".

Art. III. - In the Tax code No. 1163/1997 (repeated publication: The official monitor of the Republic of Moldova, special release of February 8, 2007), with subsequent changes to make the following changes:

1. Items 24) and 25) of Article 5 to recognize invalid.

2. In part (2) Article 8:

Item c) after words to add "tax statements" with the words "and information";

add part with the Items j-1) and j-2) of the following content:

"constitute and represent to j-1) the file of the transfer prices;

j-2) follow the rules provided by Chapter 11-2 of the Section V.".

3. In Item d) Article 19 of the word" (rounded to the following complete percent)" to exclude.

4. In the Item d-6) of Article 20 of the word "according to parts (19)-(20) Article 24;" shall be replaced with words "according to parts (19), (19-1) and (20) Article 24;".

5. Add Article 21 with part (6) the following content:

"(6) the Income of the taxpayers performing business activity, received from the economic transactions with founders or other affiliated persons made at the price below market is adjusted for tax purposes to market price.".

6. In Article 24:

part (to state 13) in the following edition:

"(13) the Deduction of remaining balance, waste and natural wastage is allowed in the limits which are annually approved by heads of the companies, but without exceeding of the limits set by the Ministry of Health for tobacco products of goods items 240210000, of 240220, of 240290000, of 2403, of 2404, and the limits set by the Ministry of Agriculture and the food industry for products of ethyl alcohol of goods items 2207, of 2208, and also the limits set by the Ministry of infrastructure and regional development for oil products.";

part (19-2) to state in the following edition:

"(19-2) the deduction of the expenses on any payments made for benefit of the worker incurred and determined by the employer on which contributions of compulsory national social insurance were assessed Is allowed and/or the fees of compulsory medical insurance and the income tax from the salary which are due from the employer and the worker are withheld. Provisions of this part do not limit the right to deduction for tax purposes of other expense types according to provisions of this Article.".

7. In Article 26-1:

in part (figures "6000" to replace 2) with figures "12000";

part (to add 4) with the offer of the following content: "In case of the organizations applying the International Accounting Standards (IAS), calculation and deduction of the depreciation connected with right to use by the fixed assets which are the subject of the agreement of operational leasing are performed by the leasing recipient.";

add Article with part (6-1) following contents:

"(6-1) V departure from part provisions (6) large enterprises, excellent from classified according to part (1) article 5 of the Law on the small and medium companies No. 179/2016, can use accelerated depreciation method within the first year of commissioning of fixed asset. The size of fixed asset depreciation which is deductible is determined as follows:

a) in the first year of use depreciation cannot exceed 50 percent of original cost of fixed asset;

b) in the years ahead uses depreciation is calculated by division of unamortized cost of fixed asset into remaining period of its useful service.

For the purposes of this part reference of the company to category of large is performed depending on the annual average number of workers, annual turnover or total volume of the assets belonging to it in the last day of the tax period preceding year of commissioning of fixed asset.

Provisions of this part do not extend to the business entities performing the types of financial and insurance activity carried to section K of the Qualifier of types of economic activity of Moldova.".

8. State Article 35-1 in the following edition:

"Article 35-1. Restrictions of application of releases

The physical persons who gained income assessed according to Article 88-1 and Chapter 1 of the Section X during tax period lose the right to use the releases provided by Articles 33-35 for the period in which they gain income assessed according to specific mode of the taxation. Release is applied in proportion to months in which activities were performed in standard tax regime.".

9. Add Article 40 with parts (5-1) and (6-1) following contents:

"(5-1) Surplus or loss of the capital are not recognized for tax purposes case of alienation of the car which was in property of the taxpayer at least three years before date of alienation, except for the vehicles having historical or ethnographic value.";

"(6-1) Surplus or loss of the capital from sale, exchange of housing which is in common joint property or its alienation of different way are determined as difference between the received amount and cost basis of these assets one of owners (joint owners) by common consent, expressed in writing.".

10. In Article 64 of the word "The law on non-state pension funds No. 329-XIV of March 25, 1999." shall be replaced with words "The law on the optional pension funds No. 198/2020.".

11. In part (articles 69-7 of figure "600000" to replace 1) with figures "1200000".

12. State Article 69-8 in the following edition:

"Article 69-8. Accounting methods and their use

(1) Account of purchases from physical persons is kept in the register on the sample established by the State Tax Administration. The register is submitted in territorial subdivision of the State Tax Administration to the 25th following the termination of tax year.

(2) the Taxpayer shall have documents on origin of implementable property, message specified in part (1) the register and to provide storage of these documents during 1 year from the moment of purchase of property.

(3) the Taxpayer shall use the control and cash equipment connected to the Automated information system "Electronic Monitoring of Sales" for documentary registration of realization of property.".

13. Part (Article 69-11 to state 2) in the following edition:

"(2) In the first tax period the taxpayer has the right to reduce the income tax amount which is subject to payment by the amount of the made expenses on acquisition of the control and cash equipment used in activities, except for persons who received compensation for expenses on acquisition of the control and cash equipment.".

14. In Article 69-12:

part (to state 2) in the following edition:

"(2) Calculation of the income tax is performed by the State Tax Administration quarterly by mailing of payment notices to the 25th following reporting quarter.

For I-III quarters about one percent of sales volume for every quarter, but at least 750 lei is paid.

In the payment notice for the IV quarter recalculation of the income tax amount for the corresponding tax period is made, at the same time the difference between the income tax amount according to the sales performed within tax year and the income tax amount estimated for I-III quarters is determined.

Payment of the income tax is performed to the 25th following the term of submission of the payment notice.";

parts (4) and (to recognize 5) invalid.

15. State Article 70 in the following edition:

"Article 70. General provisions about the taxation of nonresidents

(1) the Nonresidents gaining the taxable income from the Republic of Moldova shall pay tax which procedure for determination is established by this Chapter.

(2) the deduction only of those expenses which directly belong to the income specified in part (1), taxable in the Republic of Moldova Is allowed.".

16. The name and part (Article 71 to state 1) in the following edition:

"Article 71. Income of nonresidents gained from the Republic of Moldova

(1) Income of nonresidents gained from the Republic of Moldova irrespective of whether they are received in the Republic of Moldova or beyond its limits, are considered:

a) income from sales of goods;

b) the income from rendering managerial or consulting services in any area if this income is gained from resident or if the corresponding income is expenses of permanent mission in the Republic of Moldova irrespective of the place of their rendering;

b-1) other income from the services rendered in the territory of the Republic of Moldova, which are not provided in this Article;

c) the income in capital gain type determined according to part (7) Articles 40, received by the physical nonresident persons who are not performing business activity in the territory of the Republic of Moldova from the capital assets specified in Article 39 which are registered issued in the territory of the Republic of Moldova;

d) the income in capital gain type determined according to parts (1) - (4) Articles 40, received by legal nonresident persons from sale, exchange or alienation of different way of the capital assets specified in Article 39, being, registered, issued in the territory of the Republic of Moldova;

e) dividends, including in the form of shares or documents of title, paid by resident;

f) the percentage charges paid by the resident or the nonresident having permanent mission in the Republic of Moldova if these percentage charges are expenses of permanent mission;

g) the income from assignment of rights of the requirement of debt from resident or from the nonresident having permanent mission in the Republic of Moldova if this income is expenses of permanent mission;

h) the income from penalties and penalty fee for non-execution or improper execution of contractual commitments, including under contracts for performance of works (rendering services) and/or according to agreements in foreign trade on delivery of the goods paid by the resident or the nonresident having permanent mission in the Republic of Moldova if this income is expenses of permanent mission;

j) royalty (periodical payments) received from the resident or the nonresident having permanent mission in the Republic of Moldova if these royalty are expenses of permanent mission;

k) the income from leasing transactions, from provision in lease or the sublease, property employment, the sublease or from superficies or usufruct of the property which is in the territory of the Republic of Moldova;

k-1) the income from leasing transactions, from provision in hire, property employment or the sublease or from usufruct sea, aircrafts and/or railway or the automotive vehicles including operated in the international message and also from the personal estate connected with their operation;

l) the income from the fees according to insurance contracts and reinsurance levied from the resident of the Republic of Moldova or the nonresident having permanent mission in the Republic of Moldova if this income is expenses of permanent mission;

m) the income from rendering services in transportation, except as specified, when it is transported only between the Items located outside the Republic of Moldova;

n) income gained by physical nonresident persons from the activities performed according to the employment contract (agreement) or other civil agreements including the fees and/or other payments received by the administrator, the founder, the member of administrative board or the member of governing bodies of resident of the Republic of Moldova or the nonresident having permanent mission in the Republic of Moldova if this income is expenses of permanent mission, irrespective of the place of the actual implementation of these types of activity;

o) the income in type of privileges, stipulated in Article 19, provided to physical nonresident persons by the resident employer of the Republic of Moldova or the nonresident employer having permanent mission in the Republic of Moldova if this income is expenses of permanent mission;

p) the annuities paid by optional pension resident funds;

q) income gained by workers of art - actors of theater, circus, cinema, employees of radio, television, musicians and artists - or athletes as a result of their activities performed in the territory of the Republic of Moldova irrespective of for benefit of what person the payments relating to this income are performed;

r) income gained from rendering professional services, sporting and entertaining events and also from rendering services, excellent from provided in Item q), performed in the territory of the Republic of Moldova;

s) the income from the awards got at competitions which are held in the territory of the Republic of Moldova;

t) the commission fees from the activities performed in the territory of the Republic of Moldova received from the resident or the nonresident having permanent mission in the Republic of Moldova if these commission fees are expenses of permanent mission;

t-1) the prizes in gamblings and campaigns for promotion received from the resident or the nonresident having permanent mission in the Republic of Moldova if these prizes are expenses of permanent mission;

u) income gained from liquidating payments in case of liquidation of resident. Income gained from liquidation of resident represents positive difference between liquidating payments in cash or non-cash form and the size of contribution (share) in the authorized capital выгодоприобретателя-физического/юридического persons.".

17. Recognize Article 72 invalid.

18. Parts (1) and (articles 73 after the words "determined by Article 71," to add 3) with the words "except for determined by Item and) parts (1)".

19. In Article 74:

in part (the words "received in the Republic of Moldova" shall be replaced with words 1) "received from the Republic of Moldova";

in part (2) words "Items and) - k)," shall be replaced with words "Items b) - k),".

20. In Article 75:

in part (1) word "received in the Republic of Moldova", shall be replaced with words "received from the Republic of Moldova,";

in part (2):

in the prolog of the word "received in the Republic of Moldova" shall be replaced with words "received from the Republic of Moldova";

Item a) to declare invalid.

21. In part (2) Article 79-3:

after the words "or Russian." to add part with the offer of the following content: "The certificate on residence is valid within year(s) on which/which it is issued, except as specified of change of conditions of residence." and to exclude the words "for the corresponding calendar year".

22. Add Article 84 with part (6) the following content:

"(6) Provisions of this Article are not applied to the business entities specified in part (1-1) Articles 87, to tax periods of 2023-2025.".

23. Add Article 87 with part (1-1) following contents:

"(1-1) V departure from part provisions (1) this Article of the company, classified as micro, small or medium scale enterprises according to the criteria established the last day of tax period according to part provisions (1) article 5 of the Law on the small and medium companies No. 179/2016, can pay the accrued income tax to the 25th following after month in which dividends, including in the form of shares or shares, from income gained for tax periods of 2023-2025 inclusive were paid. The income tax amount which is subject to payment from the tax on the income accrued for tax periods of 2023-2025 inclusive is determined by application of conditional coefficient to the income tax amount estimated on tax period from the taxable income relating to the corresponding tax period. The conditional coefficient is rounded according to mathematical rules to within two signs after comma and determined by division, at the same time:

a) in numerator of fraction the size of the distributed/paid dividends is specified (before income tax withholding according to Articles 90-1 and 91);

b) in denominator of fraction the total value of net profit reflected in financial statements for tax period for which dividends are distributed/are paid is specified.

The possibility of application of this part is implemented by submission of the declaration in time, established in Article 83. The corrected declarations provided after this term are not taken into account if one of the purposes of correction is change of possibility of application of this part.

Provisions of this part are not applied to sole proprietor companies, peasant economy, residents of free economic zones, residents of the International free port "Dzhyurdzhyulesht", residents of the International free airport of Merkulesht, the business entities applying the tax regime set in Chapter 7-1, and to the business entities performing the types of financial and insurance activity carried to Section K of the Qualifier of types of economic activity of Moldova.".

24. In Article 90-1:

part (3-3) after the words "Each Payer of Prizes" to add with the words "from persons specified in Article 90,";

in part (to replace 3-7) figure "3" with figure "7";

add Article with part (3-8) following of content:

"(3-8) Persons specified 90, hold tax in the amount of 12 percent of income gained by physical persons from government securities in the form of percentage charges and/or the capital gain determined according to part in Article (7) Article 40.";

in part (4) word "and (3-7)", shall be replaced with words ", (3-7) and (3-8),".

25. In Item b) Article 96:

in subparagraph one of figure "190590600, 190590900" to replace with figures "190590700, 190590800";

in the subparagraph third figures "300215, 3005, 300610, 300620000," to replace with figures "300215000, 3005, 300610,", and figures "382200, 4014, 401511000," - figures "3822, 4014, 401512000,";

in the subparagraph the fifth figures "070959100, 070959300, 070960," to replace with figures "070953000, 070952000, 070960000,".

26. Part (Article 101 to state 1) in the following edition:

"(1) the Subjects of the taxation specified in Items and), c) e) and f) Articles 94, shall declare according to Article 115 and pay to the budget for each tax period established according to Article 114, VAT amount which is determined as difference between the VAT amounts paid or which are subject to payment by buyers (receivers) for goods delivered them, services including the VAT amounts added on the imported services and the VAT amounts paid or which are subject to payment to suppliers at the time of acquisition of inventory items, services (including the VAT on imported inventory items), and also VAT amounts added on imported the services used for implementation of business activity in the corresponding tax period taking into account the right to deduction according to Article 102.

Subjects of the taxation which are not registered as payers of the VAT according to Article 112 and import services, shall declare and pay to the budget of the VAT for the corresponding services according to Article 115.".

27. In part (1-1) Article 101-1:

in the first offer of the word "the factory buildings (intended for production of goods or services)" shall be replaced with words "the buildings used in production process, rendering services or performance of works";

in the second offer of the word of "factory buildings" to replace in both cases with words of "the buildings intended for production, rendering services or performance of works".

28. Add the code with Article 101-6 of the following content:

"Article 101-6. Compensation of VAT amount, connected with purchase of goods and services

(1) Operation of this article extends to the subjects of the taxation registered as payers of the VAT who document transactions by means of the Automated information system "e-Factura" and/or cash checks / fiscal documents issued by the control and cash equipment connected to the Automated information system "Electronic Monitoring of Sales" owing to what have the difference formed from the excess by VAT amount connected with purchases (including the VAT for import), VAT amount, connected with deliveries, concerning the transactions registered since January 1, 2023.

(2) the VAT amount determined as difference between VAT amount, connected with purchases, and VAT amount, connected with the performed deliveries, is allowed to compensation for each tax period separately, within the amount and on the conditions established by the Government. The VAT amount intended to deduction in subsequent period decreases by the VAT amount requested to compensation according to this Article.

(3) the Procedure for compensation of the VAT and the sequence of the repayment of VAT amounts connected with deliveries at the expense of the subtracted VAT amounts affirm the Government. Compensation of the VAT is performed in time, not exceeding 45 days from the date of filing of application about compensation, and in case of the taxpayers who provided objection on the control act, - in time, not exceeding 60 days from the date of filing of application.

(4) Compensation of the VAT according to this Article is made to the subject of the taxation on account of debt repayment before the national public budget, and in case of absence of debt, according to the statement of the subject of the taxation - on account of its future obligations to the national public budget or on the bank and/or payment account of appropriate subject of the taxation.".

29. In Article 102:

in part (1) in the last offer of the word "to the VAT amounts paid or subject to payment in the budget." shall be replaced with words "to the VAT amounts added on the imported services.";

in part (two last subparagraphs to state 4) in the following edition:

"The deduction is allowed to the paid or subject payment of VAT amount on acquired inventory items, services which are used for implementation of taxable deliveries, and also deliveries exempted from the VAT without the deduction right if the ratio size estimated in month between the deliveries exempted from the VAT without the deduction right, and the total amount of taxable deliveries (excluding VAT) and the deliveries exempted from the VAT without the deduction right is less than a coefficient of 0,05.

The VAT amounts carried on costs or expenses in the previous tax periods on the purchases used for implementation of taxable deliveries and also deliveries exempted from the VAT without the deduction right are subtracted in the last tax period of year if the ratio size determined based on annual figures of the deliveries exempted from the VAT without the deduction right, and total amount of taxable deliveries (excluding VAT) and the deliveries exempted from the VAT without the deduction right is less than a coefficient of 0,05.";

add Article with parts (4-1)-(4-3) of the following content:

"(4-1) in case of the purchases intended for construction of buildings in which there are rooms which are both taxable objects, and the objects exempted from the VAT without the deduction right, the VAT amount paid or subject to payment on acquired inventory items, services which are used for implementation of the taxable deliveries and deliveries exempted from the VAT without the deduction right is subtracted in proportion to the estimated cost of the trade rooms constituting taxable deliveries, divided into the total estimated cost of construction according to the project documentation. The ratio coefficient between the estimated cost of the rooms constituting taxable deliveries, and total estimated cost (K) is rounded according to mathematical rules to within two signs after comma.

Determination of VAT amount to deduction according to this part is performed separately on each construction object or complex of such objects.

(4-2) in case of change of estimated cost of construction the subtracted VAT amounts are adjusted by the application counted based on the changed estimate of coefficient (K) to the corresponding VAT amounts subtracted according to part provisions (4-1).

Adjustment of VAT amounts (deduction or reference on costs or expenses) in case of change of estimated cost of construction is performed quarterly in the first tax period, following quarter in which there was change of estimated cost of construction.

(4-3) in case of change of purpose of the goods used in case of construction of buildings in which there are only placements which are taxable objects, or only placements, exempted from the VAT without the deduction right on the appointment intended for implementation of both leviable deliveries, and the deliveries exempted from the VAT without the deduction right the VAT amount subtracted or carried on costs or expenses it is adjusted by application of coefficient (K) to the corresponding VAT amounts according to part provisions (4-1).

Adjustment of VAT amounts according to this part is performed in tax period in which goods are used as raw materials, materials or fixed asset, for implementation of the leviable deliveries and deliveries exempted from the VAT without the deduction right.";

part (to add 10) with Item c) of the following content:

"c) the document confirming import of services or their payment, including advance payment depending on what occurred earlier.".

30. In Article 103:

in part (1):

in Item 16) of the word "water supply, water disposal (sewerage)" to exclude;

in Item 24) words", motor scooters with the electric motor of goods item 871160900" to exclude;

Items 24-1), 32) and 33) to recognize invalid;

in Item 27-1) of the word "8433 and 8437;" shall be replaced with words "8436 and 8437;";

in Item 27-3) of the word", the parts intended for power generating sets" shall be replaced with words "and their parts", and "goods item 853690950" to exclude words;

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