Question of the day

The generalised basis of the tax practice has been supplemented by information on exemptions that individuals may benefit in calculating income tax and/or other income.

SFS notes that the natural person resident of the Republic of Moldova is entitled to the following exemptions to the calculation of income tax on income and/or other income:

1. Compliance Article 33 of the Fiscal Codeeach taxpayer (resident natural person) is entitled to an annual personal exemption in the size set out in this article.

2. According to the provisions Article 34(2) of the Fiscal Codenatural person resident in marriage relationships with any person specified in Article 33(2) of the Codeis entitled to an additional exemption, in the size set out in this article, provided that the spouse does not benefit from his personal exemption. These provisions will apply from the month following the month in which the circumstances required to exercise the right specified therein arose.

3. In accordance with the provisions Article 35(1) of the Fiscal Codethe taxpayer (resident natural person) shall be entitled to an annual exemption, as laid down in that Article, for each person maintained, with the exception of persons with disabilities following a congentential or childhood condition, persons with severe and severe disabilities for whom the exemption is determined in the major size. The person maintained is the person who meets the following requirements:

a) is a bottom-up or down of the taxpayer’s or spouse(s) of the taxpayer(s) or children, including dependants and seizures, or person with severe and severe disability, person with disabilities as a result of a congendering or childhood – relative to grade two in the collateral line;

b) has revenue not exceeding the annual amount in the size set out in this paragraph. The calculation of income shall not include the amount of allowances paid from the means of the State budget, for persons with disabilities as a result of a congendering or childhood condition and for persons with severe and severe disabilities.

Colouring minors from 14 p. 18 years legal guardians shall also be entitled to an additional exemption in the size specified in Article 35(1) of the Fiscal Code, depending on the case, for each person under guardian and/or quantum, who meets the requirements specified in Article 35(2)(b) of the Fiscal Code. The exemption for maintained persons shall apply from the month following the month following the month of the occurrence of this right subject to compliance with the requirements laid down in paragraphs (2) and (3) of Article 35 of the Fiscal Code.

Those exemptions shall be used for each individual tax period.

[Change in the Generalised Basis of Tax Practice pursuant to the approval of Law No 257 of 16.12.2020, in force 1.1.2021]

Source: Bizlaw.md