Moldova: Draft legislation aimed at simplifying tax and customs rules approved by Parliament
Proposed changes affecting VAT, corporate income tax, and withholding tax
october 5, 2026
Parliament on September 10, 2026, approved in the first reading draft legislation aimed at simplifying tax and customs rules, which would:
- Increase the VAT rate from 8% to 12% on specified agricultural products and hotel and restaurant supplies, while limiting preferential VAT treatment for household natural gas and electricity consumption, effective January 1, 2027
- Increase the income tax rate for companies conducting financial and insurance activities from 12% to 18%, effective January 1, 2027
- Increase the final withholding tax on dividends paid to nonresident individuals and entities from 6% to 8%, effective January 1, 2027
- Remove the proposed Estonian-style corporate income tax regime (including the 0% rate on reinvested or undistributed profits, the 15% rate on distributed profits, and the 7% dividend tax rate), but also extend the period for deferring income tax for 2027-2029 for entities that, as at the last day of the fiscal period, have no more than 249 employees and generate an annual turnover of no more than MDL 200 million, or have no more than 249 employees and hold total assets of no more than MDL 200 million, if dividends have not been distributed, including in the form of share parts
For more information, contact a KPMG tax professional in Moldova:
Inga Tigai | ingatigai@kpmg.com