Moldova: Guidance on deductibility of expenses for optional insurance, VAT exemption for construction and installation services for photovoltaic parks
Guidance from State Tax Service issued in July
The State Tax Service (STS) on July 17, 2025, clarified that expenses for optional insurance are deductible for corporate income tax purposes, with conditions.
- The deductions are capped at 3% of gross income, while state-subsidized insurance deductions are limited to the insurer's premium share.
- Employer expenses for employee healthcare insurance are deductible as per the Tax Code.
The STS on July 16, 2025, also clarified that construction and installation services for a photovoltaic park provided by a Moldovan resident to a nonresident are exempt from VAT with the right for deduction. The services are considered an export, with the place of supply determined by the location of the immovable property, as per the Tax Code.
For more information, contact a KPMG tax professional:
René Schöb | rschob@kpmg.com
Inga Tigai | ingatigai@kpmg.com