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- Basic Facts
- Statutory Labor Requirements
- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Deductible Expenses In Brazil
- Immigration In Brazil
- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Terminating Employee In Brazil
- Statutory Employee Benefits In Brazil
- Payroll In Brazil
- Ease Of Doing Business In Brazil
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BASIC COUNTRY FACTS
Republic of Moldova
Chișinău
- Romanian
- Gagauz
- Russian
- Ukrainian
3.546 million
Moldovan leu
.md
+373
Moldovan leu
STATUTORY LABOR REQUIREMENTS
Probation Period
- Probationary periods of up to 3 months, and six months for officials, are allowed and may not be renewed.
- Fixed-term contracts may also have probation periods, but they may not exceed 15 calendar days for a contract of between three and six months or 30 calendar days for a term of greater than six months.
Annual Leave
- Employees are generally entitled to 28 calendar days of paid annual leave, not to include public holidays.
- The vacation may be taken in parts, but at least one part must be of at least 14 calendar days.
Public Holidays
- New Year's Day (1st January)
- Orthodox Christmas Day (7th January)
- 2nd Day of Christmas (Eastern) (8th January)
- Orthodox Easter (19th April)
- Orthodox Easter Monday (20th April)
- Radonitsa (27th April)
- Labor Day (1st May)
- Victory Day (9th May)
- Children's Day (1st June)
- Independence Day of Republic of Moldova (27th August)
- Limba noastră (31st August)
- Christmas Day (21st December)
Maternity Leave
- Female employees are generally entitled to maternity leaves of 70 calendar days before the birth and 56 calendar days after.
- Employees are also generally eligible for a partially paid holiday until the child reaches the age of three.
- The duration of the holiday is dependent on the employee’s seniority, position, and insurance. Both maternity leave and the partially paid holiday are paid for out of the social insurance fund.
- Female employees with two or more children under the age of 14 are entitled to four additional days of paid annual leave
- Female employees with two or more children under the age of 14, and single parents with at least one child under the age of 14, are eligible for an unpaid vacation of 14 calendar days which can be used in conjunction with the annual paid holiday or separately, and does not have to be taken all at once.
- Unpaid holidays can be taken from the child’s age of three until the child reaches the age of six. The duration of the leave is dependent on the position of the employee and her seniority.
Paternity Leave
- Fathers, grandparents, or other relatives who care for children are eligible for a partially paid holiday to take care of a child under the age of three.
Sick Leave
- Employees are eligible for paid sick leave if they present a medical certificate.
- As of 01 July 2019, there are applied new procedures for calculating and paying compensation for temporary incapacity for work.
- According to them, the allowance for the first 5 days of medical leave in the case of common illnesses or accidents not related to work is calculated and paid by the employer, but not more than 15 cumulative days during a calendar year.
- Starting with the 06th day of temporary incapacity for work, the establishment, calculation and payment of allowances are performed by CNAS from the account of the state social insurance budget (BASS).
Work Hours
- In general, the workweek is 40 hours, with five, eight-hour days.
- On the day before a holiday, work is decreased by at least one hour.
Overtime
- On demand of the employer the employees can perform overtime work not more than 120 hours within one calendar year.
- In unusual cases the duration of overtime work can be increased with the consent of the representatives of employees till 240 hours within one calendar year.
- Performance of overtime work cannot serve as a reason to increase the duration of daily work for more than 12 hours.
Notice Period
- Employees are generally entitled to one month's notice of dismissal, or two months in the case of the business being liquidated or a redundancy.
Severance
- Employees are generally eligible for severance pay equal to one week’s wages for every year worked, with a minimum of one month’s wages if they are terminated due to economic reasons.
- Employees dismissed for just cause are generally entitled to two weeks of pay.
INCOME TAX
- Moldovan residents (both Moldovan citizens and foreigners) are subject to taxation for their income received during the fiscal period from any sources within the Republic of Moldova, as well as from sources outside the country for their work activity effectively performed in the Republic of Moldova (except income that is expressly tax exempt under the Moldovan law).
- Moldovan citizens receiving investment and financial income from sources outside Moldova are also subject to tax on this income in Moldova
- At the same time, individuals qualifying as non-residents for Moldovan PIT purposes are subject to Moldovan tax for the income derived from Moldovan sources (e.g. income received from property located in Moldova, remuneration for activity performed in Moldova, interest and royalties received from Moldovan legal entities).
- The Tax Code provides the following PIT rates for 2020:
|
Type of income |
Rate |
|
For residents (standard taxation): |
|
|
Income from employment, including benefits in kind and from professional or entrepreneurial activity |
12% |
|
Capital gains |
|
|
Other taxable income |
|
|
Individual entrepreneurs |
|
|
Income for farming enterprises |
7% |
|
For residents (final taxation): |
|
|
Dividends, except for 2008 to 2011 profit distribution |
6% |
|
Dividends related to 2008 to 2011 profit distribution |
15% |
|
Income from the withdrawn amount from the share equity related to previously increased share equity upon distribution of the net profit and/or other sources recorded in the owners’ equity between shareholders (associates) according the participation share in the equity for the fiscal period 2010/11. |
15% |
|
Gains from promotional campaigns |
12% for the amount exceeding MDL 24,000 for each gain |
|
Gambling revenues |
12% |
|
Winnings from lotteries and sport bets |
12% for the amount exceeding 1% of the personal allowance (i.e. MDL 240) for each win |
|
Royalty paid to individuals |
12% |
|
Income from supply of phytotechnical, horticultural, and zootechnical products |
5% |
|
Money donated by legal entities to individuals who do not perform business activity |
6% |
|
For non-residents: |
|
|
Income from employment, including benefits in kind |
12% |
|
Dividends, except for 2008 to 2011 profit distribution |
6% |
|
Dividends related to 2008 to 2011 profit distribution |
15% |
|
Income from the withdrawn amount from the share equity related to previously increased share equity upon distribution of the net profit and/or other sources recorded in the owners’ equity between shareholders (associates) according to the participation share in the equity for the fiscal period 2010/11. |
15% |
|
Other types of income |
12% |
DEDUCTIBLE EXPENSES
Personal deductions
- No deductions for personal and family expenses are allowed for PIT purposes.
- Mandatory social security and health insurance contributions are deductible for PIT purposes.
Personal allowances
- Generally, individual Moldovan residents are liable to annual allowances. For 2020, allowances are set in the following amounts:
|
Type of allowance |
Annual amount (MDL) |
|
Personal allowance |
24,000 |
|
Spouse’s exemption (1) |
11,280 |
|
Major personal allowance (2) |
30,000 |
|
Allowances for dependent (3) |
3,000 |
IMMIGRATION
- According to the provisions of the Law no. 200 of July 16, 2010 concerning the foreigner’s regime in the Republic of Moldova, visa is granted to foreigners by diplomatic and consular missions of the Republic of Moldova abroad and electronic visa (short stay type C) by Directorate for consular affairs of the Ministry of Foreign Affairs and European Integration of the Republic of Moldova.
- Foreign citizens and stateless persons who want to engage in employment in the Republic of Moldova must obtain work permit from the National Agency for Employment of the Ministry of Economy.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Long Stay Visa (Type D/AI) |
|
90 days |
|
|
Long Stay Visa (Type D/AM) |
|
90 days |
|
|
Work Permit |
|
1 years or more |
|
VALUE ADDED TAX
- The standard VAT rate in Moldova is currently 20%.
- It is generally applied to local supplies of goods and services as well as to goods subject to import and services subject to the reverse charge mechanism.
- However, the VAT may be assessed at a lower rate of 8 percent for certain specifically mentioned products, such as panification, certain drugs, meat and sugar beet sugar.
|
VAT |
|
|
Standard Rate |
20% |
|
Reduced Rate |
8% |
WITHHOLDING TAX
Dividends
- Dividends paid by Moldovan resident companies to both residents and nonresidents are subject to a 6% tax, unless the rate is reduced under an applicable tax treaty
Interest
- Interest paid to a nonresident is subject to a 12% withholding tax, unless the rate is reduced under a tax treaty
Royalties
- Royalties paid to resident individuals and non-residents are subject to a 12% tax, unless the rate is reduced under a tax treaty
Technical Service Fees
- Service fees paid to nonresidents are subject to a 12% withholding tax, unless the rate is reduced under a tax treaty
|
WHT |
|
|
Dividends |
6% |
|
Interest |
12% |
|
Royalties |
12% |
|
Technical Service Fees |
12% |
TERMINATION
- Termination of employees is permissible with just cause and may be subject to the agreement of the trade union.
- Employees are generally entitled to one month’s notice of dismissal, or two months in the case of the business being liquidated or a redundancy.
- Employees are also entitled to one day per week to seek new employment.
- Employees are generally eligible for severance pay equal to one week’s wages for every year worked, with a minimum of one month’s wages if they are terminated due to economic reasons.
- Employees dismissed for just cause are generally entitled to two weeks of pay.
STATUTORY BENEFITS
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
PAYMENTS AND INVOICING
- The taxable period for PIT purposes is considered the calendar year.
- The annual PIT return has to be submitted by taxpayers (if the case) no later than 30 April of the year following the reporting one.
- Foreign citizens obtaining income from Moldovan resident individuals are required to present the specific tax return no later than three days after ending their activity in Moldova.
- The due date for settlement of PIT obligations by individuals is 30 April of the year following the reporting year.
- The PIT payment is made in local currency. In addition, it is also possible to perform the PIT payment from abroad in a foreign currency if specific payment instructions are followed.
- Upon the taxpayer's specific request, the overpaid tax may be either refunded or credited against future liabilities.
- Resident taxpayers who do not have debts to the state budget have the possibility to direct to non-commercial organizations with the status of a public utility 2% from the PIT amount.
- Interest for late payment of individual income tax currently stands at 0.0355% per day of delay, calculated on the total tax due.
EASE OF DOING BUSINESS
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Moldova ranked 48thin the World in 2019 in terms of ease of doing business
