Question of the day

Tax regime for self-employed persons (Chapter 102, Title II of the Tax Code) applies only to self-employed activities carried out in the field of retail trade (excluding goods subject to excise duty).

Subjects of taxation

Taxable persons are resident natural persons who, without constituting a legal and organisational form for carrying out their activity, derive income from self-employed activities carried out in the field of retail trade (excluding goods subject to excise duty), with the exception of the activities referred to in Articles 88, 90 and 901 of the Fiscal Code, in an amount not exceeding RON 600000 over a tax period.

The right to apply the regulated tax regime shall be exercised by means of an application submitted by the taxpayer to the subdivision of the State Tax Service. The period of application shall start with the tax period in which the request was submitted, if it has been submitted by 31 December of the accounting year of management. No repeated submission of the application shall be required in periods subsequent to the first tax period.

A taxpayer who has ceased activity shall be obliged, within 5 days of the adoption of such a decision, to submit a piece of information to the sub-division of the State Tax Service, with the compulsory attachment of the declaration on the tax on income from self-employed activities.

Record-keeping methods and their application

Taxpayers shall apply cash accounting in accordance with Article 44 (2) CF *.

For tax purposes, taxpayers are required to keep records of sales and purchases in accordance with the manner laid down by the Ministry of Finance and use cash settlement cash and control equipment in the manner laid down by the Government for taxpayers keeping accounts.

Tax period

‘Tax period’ means the calendar year at the end of which the income from the activity is determined.

For taxpayers who commence activity during the tax period, the tax period shall be deemed to be the period from the date of registration of the taxpayer in the State Tax Register until the cessation of activity during the year or until the end of the calendar year.

For taxpayers who cease activity during the tax period, the tax period shall be deemed to be the period from the beginning of the calendar year until the date on which the taxpayer is removed from the State Tax Register.

Subject matter of the imposition

The subject of taxation is the income from self-employment earned during the tax return period.

For the purposes of the application of Chapter 102, Title II of the Fiscal Code, the value of the return/refund of the goods or the value of the discount (reduction) is to decrease the size of the subject of taxation in the tax period in which the return/return of the goods took place or the discount (reduction) was granted, including where the sale of the goods concerned took place in previous tax periods.

Tax rate

The rate of income tax is 1 % of the subject matter of the charge, but not less than RON 3000.

In the first tax period, the taxpayer is entitled to reduce the amount of income tax due by the amount of expenses incurred in procuring (purchasing) the cash and control equipment used in the business.

For taxpayers who cease their activity during the tax period, the income tax rate constitutes 1 % of the subject matter of the tax, but no less than RON 250 for each month in which they carried out their activity.

Method of calculation, payment and declaration

The income tax is calculated by applying the tax rate on income from self-employment, which may not be less than RON 3000 per year.

The tax is calculated on an annual basis. Tax shall be paid to the budget in instalments on a quarterly basis until the 25th day of the month following the quarter in question. Tax on the income of self-employed persons engaged in business activities is to be found under 111124 of Classifier of economic codes of receipts of district budgets, municipal budgets of Chișinău and Bălți, central budget of UTA Găgăuzia and local budgets.

For taxpayers who commence or cease activity during the tax period, the income tax shall be calculated by applying the tax rate on income from self-employment, which may not be less than RON 250 for each month during which the person was registered as subject to taxation.

Income tax shall be paid in full to the local budget’s treasury revenue account according to the taxpayer’s domicile/residence address.

The income tax return shall be submitted no later than 25 March of the year following the tax return period.

The form and manner of completion of the income tax return shall be approved by the Ministry of Finance (standard form AI17 ‘Income tax return for the self-employed’)

Records of self-employed natural persons

The State Tax Service organises record-keeping and information monitoring on each tax subject.

The form and methods of keeping records of subjects of taxation shall be established by the State Tax Service.

In order to pursue self-employed activity, the subject shall be registered with the State Tax Service. on the basis of the application. Proof of tax registration serves as confirmation of tax registration.

* Notes:

According to Article 44 (2) of the Fiscal Code, cash accounting means the method according to which:

income shall be reported in relation to the tax year in which it is obtained in cash or in another form;

the deduction shall be allowed in the tax year in which the expenditure was incurred, except where such expenditure has to be reported in another tax year in order to correctly reflect the income.

Source: contabilsef.md