Question of the day

In accordance with Article 83 (1) of the Fiscal Code, all taxpayers have the right to submit their income tax return.

Shall be required to submit the income tax return:

a) natural persons (citizens of the Republic of Moldova, foreign citizens, stateless persons, including members of companies and shareholders of investment funds) with obligations to pay tax;

A1) persons engaging in professional activity, irrespective of the presence of the obligation to pay tax;

A2) resident natural persons who have used the personal exemption and obtained annual taxable income in excess of RON 360000 during the tax return period, with the exception of the income referred to in Article 901;

resident natural persons (citizens of the Republic of Moldova, foreign citizens and stateless persons, including members of companies and shareholders of investment funds) who direct an amount as a percentage of the income tax calculated annually to the budget;

B1) non-resident natural persons who receive income in accordance with Article 74;

resident legal persons, including those specified in Articles 512 and 513, with the exception of public authorities and public institutions, irrespective of the presence of the obligation to pay the tax;

resident organisational forms having the status of a natural person, in accordance with the legislation, irrespective of the presence of the obligation to pay the tax, with the exception of peasant households (as farmers) which during the tax period did not have employees and did not obtain taxable income, in this case the peasant household is exempted from the obligation to submit the income tax return. At the same time, an individual entrepreneur or household (farmer) whose average annual number of employees during the entire tax period does not exceed 3 units and who is not registered for VAT purposes shall submit, no later than 25 March of the year following the tax year of management, a unified tax return (declaration) in respect of income tax.

(e) permanent representation of the non-resident in the Republic of Moldova, irrespective of the presence of the obligation to pay tax.

Tax accounts for income tax purposes must be submitted using automated electronic reporting methods, in accordance with the conditions laid down in Article 187 (21) [*].

The income tax declaration shall be completed in the manner and form laid down by the Ministry of Finance and submitted to the State Tax Service no longer for:

a. the 25th day of the third month following the end of the tax management period in the case of legal persons, resident organisational forms with the status of a natural person, in accordance with the legislation, to the permanent representations of the non-resident in the Republic of Moldova;

b. 30 April of the year following the accounting year of management in the case of natural persons (citizens of the Republic of Moldova, foreign citizens and stateless persons, including members of companies and shareholders of investment funds).

An exception to the terms set out above on submission of the income tax return shall be made in the following cases:

Natural persons who are not obliged to submit the income tax return, upon detection of overpayment of tax, are entitled to submit a return indicating the overpayment of tax to be refunded in accordance with tax legislation.

— If the taxpayer intends to change his permanent residence from the Republic of Moldova to another country, he is obliged to submit the income tax return, in the manner determined by the Ministry of Finance, for the entire tax management period when he has been resident.

At the written request of a natural person who is not an entrepreneur, the State Tax Office may extend (within reasonable limits) the deadline for submitting the income tax return. An extension of the time limit shall be granted only if the application has been lodged before the expiry of the time limit for submission of the declaration.

A non-resident who carries out activities in accordance with Article 5 (151) of the Fiscal Code and who obtains the status of permanent representation in accordance with Article 5 (15) of the Fiscal Code shall also be required to submit, in the first income tax return submitted to the sub-division of the State Fiscal Service, information relating to the tax period during which the entrepreneurial activity was carried out, starting on the day on which he launched the entrepreneurial activity and ending on registration as a permanent representation in the reporting tax year.

The table below classifies income tax accounts by subject, deadline for submission, deadline for payment, etc.

Notes:

[*] Article 187. Presentation of the tax account

(21) tax accounts must be submitted using automated electronic reporting methods, in the form and manner regulated by the State Tax Service, as follows:

b) from 1 January 2013 – by subjects registered as VAT payers;

(c) from 1 July 2016 – by subjects with, according to the number of employees recorded in the previous year, more than 10 persons employed under individual employment contracts or other contracts;

(d) from 1 January 2017 – by taxpayers employing more than 5 employees as at 1 January 2016;

e) starting from 1 January 2017, for tax periods starting from 2017 – by persons working in the justice sector;

f) from 1 January 2017 – by the residents of the information technology parks;

g) as of 1 January 2019 – by taxpayers with 5 and more employees;

h) from the date of entry in the tax records (allocation of the tax code) – by the persons indicated in Article 162 (1) (d), irrespective of the number of employees.

Source: contabilsef.md