Tax policy - final touches before approval

Tax policy - final touches before approval

The EBA is actively participating in the public consultations organized by the Committee on Economy, Budget and Finance on the draft law on the amendment of some normative acts concerning the budgetary-fiscal and customs policy for the year 2025 (No 222 of 09.07.2024). Details of the draft can be accessed at: https://www.parlament.md/ProcesulLegislativ/Proiectedeactenormative/tabid/61/LegislativId/7055/language/ro-RO/Default.aspx?fbclid=IwZXh0bgNhZW0CMTAAAR3INdLundPvg-6auoOoPM9foY6H-SMyTKTamfCuhX4w2ZwNesrsgmOMZTA_aem_oBRpKMACl7pEFpNii-6Hfg 

During this meeting, which took place on July 16, 2024, the EBA addressed key topics such as:
1. Transfer pricing -exclusion of local transactions between related parties from transfer pricing documentation requirements. This exception is essential to avoid excessive administrative costs and allow companies to focus their resources on growth. Since the beginning of discussions on this issue, the EBA has advocated the need to exclude local transactions. Currently, there are few specialists able to assist companies in the preparation of transfer pricing documentation, which leads to the outsourcing of these services and increased costs. Moreover, the control of local transactions does not bring additional corporate income tax revenues, as the primary adjustments are opposable to the other party. It is imperative that legislation is aligned with EU practices and the recommendations of international institutions such as the IMF and OECD.
2. Elimination of limits for tax loss reporting - The request to eliminate the 6-year limit for tax loss reporting and to ensure fair treatment in tax audits.
3. Exclusion of the Goods Accompanying Notice - Proposal to reintroduce the Goods Accompanying Notice to reduce administrative costs and facilitate the correction of errors.
4. Boost life insurance - Proposal to support employee life insurance as a long-term benefit.
5. Revision of VAT rates - Standardizing reduced VAT rates for agri-food products and setting an 8% rate for poultry and eggs.
6. Repeal of Chapter 73 of the Tax Code - Proposal to revert to taxation at the rate of 12% of net income for economic agents in the ferrous and non-ferrous scrap metal sector.

EBA was represented by Sandra Dolghii, Tax Policy Manager.

Sincere thanks to the colleagues involved in the Tax Policy 2025 consultation exercise: Mrs. Diana Ilicciev, Chair of the Committee on Taxation and Customs and Chief Accountant of Victoriabank, SAIPH Consulting House colleagues: Tatiana Stavinschi, Cretu Nicolae, Pavel Sarghi, EBA members who were very involved by presenting proposals, drafting EBA Position Papers and consulting on the draft Tax Policy 2025.

Sincere thanks to colleagues Mr. Radu Marian, Mrs. Cristina Ixari, State Secretary of the Ministry of Finance, colleagues from the Ministry of Finance of the Republic of Moldova, the State Tax Service and the Customs Service of the Republic of Moldova. Thank you for your efforts in reviewing the hundreds of pages of amendment proposals related to the Tax Policy. On behalf of the EBA, about 140 proposals were submitted, totaling more than 120 pages, of which 24 amendments were accepted by the Ministry of Finance - for which we thank you very much!

The EBA position paper on Tax Policy 2025 is available at the following link: https://eba.md/uploaded/Documente%20de%20pozitie%202024/36.%20CEB%20Cover%20EBA%20PFV2025%2015.07.2024%20rev-combined.pdf?fbclid=IwZXh0bgNhZW0CMTAAAR0pTaxlb_lcDBBIO_ixRXS5SgfVyhHo8VOBWDFTcDYEteqoB8pXItZNR40_aem_kGgEvNLw2v5G-QrvpFXoag