Tax Incentives and Facilities for Investment in Moldova


Fragment from Tax Code of Moldova № 1163-XIII from 24.04.97
 
Published in Monitorul Oficial, nr.62/522 din 18.09.1997 with additional changes in 2001, 2005 and 2007.

(1)The local firms whose capital is formed or increased in the manner prescribed by law or performing investments (expenses) in the amount of capital that exceeds an amount equivalent to US $ 250,000 is exempt from income tax in the amount of 50%, starting with the fiscal period in which the tax authorities, the agreement for exemption from income tax in accordance with regulations approved by the Government, over 5 tax years, provided that at least 80% of the income tax calculated and paid-budget reinvested in the development of production (works, services) own or state programs or branch of national economy development.
(2) enterprises whose capital is formed or increased in the manner prescribed by law or performing investments (expenditures) capital is exempt from income tax, since the tax period in which the tax authorities, the agreement of tax exemption income, in accordance with regulations approved by the Government, the following tax period, depending on the size of formed or increased capital or investment size (costs) incurred capital as follows:
a) for 3 years - if the size of capital, formed or increased in the manner prescribed by law, or investments (expenditures) capital exceeds the amount equivalent to US $ 2,000,000, provided that at least 80% of the income tax calculated and Callable budget reinvested in the development of production (works, services) own or state programs or development branch of the national economy;
b) for 3 years - if the size of capital, formed or increased in the manner prescribed by law, or investments (expenditures) capital exceeds the amount equivalent to US $ 5,000,000, provided that at least 50% of the income tax calculated and Callable budget reinvested in the development of production (works, services) own or state programs or development branch of the national economy;
c) for  3 years - if the size of capital, formed or increased in the manner prescribed by law, or investments (expenditures) capital exceeds the amount equivalent to US $ 10 million, provided that at least 25% of the income tax calculated and Callable budget reinvested in the development of production (works, services) own or state programs or development branch of the national economy;
d) for 4 years - if the size of the share capital, formed or increased in accordance with the legislation, or investments (expenditures) capital exceeds the amount equivalent to US $ 20 million, provided that at least 10% of the income tax calculated and Callable budget reinvested in the development of production (works, services) own or state programs or development branch of the national economy;
e) for  4 years - if the size of the share capital, formed or increased in accordance with the legislation, or investments (expenditures) capital exceeds an amount equivalent to US $ 50 million
(3) Tax breaks in paragraph (1) and (2) shall be granted if the following conditions are observed:
a) these companies meet the conditions laid down in Article 8. (1) d);
b) these companies have not received and / or do not benefit from similar tax incentives provided to the formation or capital increase.
(4) The deadline for reinvestment in the development of production (works, services) Own or state programs or development branch of the national economy in the proportions set out in the income tax, calculated and not paid to the budget, according to paragraph (1) and par. (2) a) -d), be determined in the next fiscal period fiscal period in which the period of benefit of tax facility in paragraph (1) and paragraph (2) a) - d).
(5) Tax breaks in paragraph (1) and (2) shall not be granted to enterprises whose equity or grew up in, or whose long-term tangible assets were part of the capital or investments (expenses) capitals undertakings entrusted with the benefit of tax relief provided in para. (1) and (2).
(6) Immediately after the expiry of the exemption from income tax, businesses that have met the conditions set out in paragraph (2) have the right to enjoy yet over 3 tax years income tax exemption, provided that fiscal period for which tax relief is requested, the size of capital, increased in the manner provided by law, or investments (expenditures) capital made exceed an amount equivalent to US $ 10 million
(7) Businesses, including those who received income tax exemption for the establishment or increase of share capital, as provided by law, the amount exceeding the equivalent of US $ 2,000,000, in the wording of the previous law, are entitled to tax facility provided in paragraph (2) and (6), provided that the total period of exemption, including previously granted, shall not exceed seven tax years.
(8) Businesses granted exemption from income tax in accordance with the provisions of this Article in the previous editorial, may continue to benefit from this exemption if the conditions laid down at the time of grant.
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