A Simplified Guide to Business Formation and Taxation in Moldova
Moldova is one of the most attractive destinations in Eastern Europe for foreign founders looking to optimize tax efficiency, establish a company, and operate within a flexible legal and regulatory environment. With low corporate tax, favorable regimes for IT and exporters, and a gateway position between East and West, it’s an ideal launchpad for scaling internationally.
This guide offers a clear breakdown of accounting rules, taxation policies, and practical steps to reduce your tax liability legally in Moldova.
Table of Contents
- Why Choose Moldova for Business?
- Understanding Moldova’s Accounting Standards
- Key Accounting and Audit Requirements
- Moldova’s Progressive Taxation System
- Tax Benefits by Sector
- Regulatory Authorities in Moldova
- How to Pay Less Taxes in Moldova (Legally)
- Conclusion: Why Moldova Is Worth Considering
Why Choose Moldova for Business?
- Strategic Location: Moldova borders the EU and Ukraine, with access to major logistics hubs
- Business-Friendly Policies: Transparent tax structures, e-government portals, and reduced bureaucracy
- Sector Incentives: Special regimes for IT, agriculture, manufacturing, and exporting businesses
Understanding Moldova’s Accounting Standards
- IFRS Compliance: All public interest entities must follow IFRS
- SME Standards: Simplified national accounting standards apply to small and medium-sized firms
- Electronic Filing: All financial statements must be submitted electronically via Moldova’s government platforms
Key Accounting and Audit Requirements
Annual Financial Reports
All companies are required to submit the following annually:
- Balance Sheet
- Profit & Loss Statement
- Cash Flow Statement
- Statement of Changes in Equity
- Explanatory Notes
Mandatory Audits
Audits are required for public interest entities and large companies that meet financial thresholds defined by law.
Moldova’s Progressive Taxation System
Corporate Income Tax (CIT)
- Standard rate: 12% on net profits
- IT Park Residents: 7% flat tax on gross revenue (covers all taxes)
- Free Economic Zones: 6%, reduced further to 0% in some cases
Personal Income Tax (PIT)
- Flat rate of 12% on all individual income
VAT Rates
- Standard rate: 20%
- Reduced rates:
- 8% – medicines, food, dairy
- 6% – hospitality and accommodation
- Exports: VAT-exempt with the right to deduction
Alternative Tax Regime
- 4% tax on turnover for small companies not VAT-registered
Tax Benefits by Sector
1. IT & Technology
- 7% all-inclusive flat tax in the Moldova IT Park
- Tax exemptions on dividend repatriation for residents
2. Free Economic Zones
- Corporate tax as low as 0% depending on activity and reinvestment
- Exemptions on customs duties and VAT
3. Small Enterprises
- Simple accounting rules + 4% turnover tax
- Ideal for early-stage founders or low-overhead ventures
Regulatory Authorities in Moldova
- Ministry of Finance: Fiscal policy, budgeting, and tax regulations
- National Bank of Moldova: Financial oversight and reporting standards
- State Tax Service: Audits, tax compliance, and enforcement
How to Pay Less Taxes in Moldova (Legally)
- Choose the Right Jurisdiction: Free Economic Zones and IT Parks offer reduced tax rates and other incentives
- Use the Simplified Regime: For micro-entities, the 4% turnover tax reduces accounting costs
- Optimize VAT Strategy: Exporters enjoy full VAT exemptions with input recovery
- Review Your Legal Structure: Structuring as an IT Park resident or FEZ company may reduce overall tax burden
- Stay Updated on Incentives: Moldova regularly introduces sector-specific relief (e.g., for agriculture, education, digital services)
Conclusion: Why Moldova Is Worth Considering
Moldova offers a rare mix: low tax rates, simplified compliance, and access to major markets. Whether you are an entrepreneur scaling a tech startup or an international trader entering the EU border zone, the financial benefits are real—and often underutilized.
incorpore provides full support in company formation, accounting, and tax structuring—making sure you start right, stay compliant, and legally minimize tax liabilities.
Get in touch with us today to explore your options and optimize your structure in Moldova.
