Moldova: Consultation on proposed tax and customs reform package
Proposed changes affecting corporate income tax, withholding tax, VAT, excise duties, customs procedures, and tax administration
The Ministry of Finance of Moldova, on June 11, 2026, launched a public consultation on a draft law intended to simplify and reform the country’s tax and customs legislation. The proposal is designed to modernize the tax framework and encourage economic activity, with many measures proposed to become effective on January 1, 2027, if adopted.
The draft package includes a broad range of proposed tax measures affecting corporate income tax, withholding tax, VAT, excise duties, customs procedures, and tax administration, including:
- Zero tax rate on undistributed profits
- Calculation of business income tax when profits are distributed as dividends or otherwise distributed in monetary or nonmonetary form
- Changes to the taxation of nonresidents, including an increase in withholding tax on nonresident income to 15% and an increase in dividend withholding tax to 7%
- Changes to corporate income tax deductibility rules relating to personal and family expenses, entrance and membership fees, charity and sponsorship contributions, and employee benefits in kind
- Repeal of the incentive capital regime
- Changes to VAT registration requirements, VAT refunds, and cancellation of VAT registration
- Broader application of the standard 20% VAT rate and expansion of automatic VAT refunds
- Amendments to the excise duty regime, including expansion of the excise base, adjustments to excise rates, and introduction of excise duties on certain non-nicotine e-cigarette liquids, sugar-added beverages, sugary soft drinks, energy drinks, and pyrotechnic items
- Reforms affecting customs administration, tax administration, compliance requirements, enforcement procedures, insolvency procedures, and social insurance contributions
- The government approved the draft package and submitted it to Parliament. The proposed measures remain subject to the legislative process before becoming effective.
For more information, contact a KPMG tax professional in Moldova:
Inga Tigai | ingatigai@kpmg.com