LAW OF THE REPUBLIC OF MOLDOVA

of December 19, 2019 No. 171

About modification of some legal acts

List of amending documents

The Parliament adopts this organic law.

Art. I. – In the Tax code No. 1163/1997 (repeated publication: The official monitor of the Republic of Moldova, special release of February 8, 2007), with subsequent changes to make the following changes:

1. In Article 5:

the subitem a) Item 15) after the words "branch, representation" to add with the word "department";

in Item 32):

add Item with the subitem g) the following content:

"g) it is long in the amount up to 1000 lei which prescriptive limit expired.";

after the words "in the cases stated above" to add Item with words ", except for the subitem g),".

2. Add Article 9 with the offer: "Actions for tax administration are applied to the subjects specified in Item d) parts (1) Articles 162, only in the cases which are specially provided by this code.".

3. In part (Article 14 of the word "and 102," shall be replaced with words 3) ", 102 and 103,".

4. In Item a) parts (3) articles 152 after words of "The law on public associations", shall be replaced with words "The law on public associations No. 837/1996 and article 5 of the Law on funds No. 581/1999,".

5. In Article 18:

in Item f) to exclude the words "and parts (6) Article 31";

to add the Item f 2) after words of "loans" with words ", leasing payments".

6. Item d) Article 19 to state in the following edition:

"d) the percentage charges received proceeding from positive difference between the interest rate applied to the new loans granted to physical persons for the term of more than five years (rounded to the following complete percent), established by National Bank of Moldova in November of the year preceding accounting tax year and the interest rate added on the loans granted by the employer to the worker. Provisions of this Item are not applied to the loans granted by banks and non-bank credit institutions to the workers under general conditions on which they grant the loans to the third parties;".

7. In Article 20:

Item i) to add with words ", except for the donations performed according to part (31) Article 901;";

add Article with the Items z 15), z 16) and z 17) of the following content:

"z-15) the payments made by receivers of works on food and transportation of time-workers, in the size established by the Government;

z-16) compensation paid for the account of Fund of compensation to investors according to the Law on the capital market No. 171/2012;

z-17) the income connected with not used reserves which were not subtracted for tax purposes at the time of their education.".

8. In Article 21:

Item 2) parts (3) after words "in foreign currency", to add with the words "except for the advance payments which are provided/received for acquisition/delivery of assets and services";

part (to state 4) in the following edition:

"(4) the Physical person which is not performing business activity is considered as person who gained income in the amount of the amount of the presented money in part in what total amount exceeds the income during tax period in which donation was performed. Provisions of this part do not extend to persons performing donation to persons who are relatives, cousins-in-laws of the first degree, and also the spouse/spouse.";

add Article with part (5) the following content:

"(5) the Business entity performing donation in the form of things is considered sold the presented thing at the price which represents the maximum size between cost, not depreciable for the purpose of the taxation, and market value at the time of donation.".

9. In Article 24:

part (to add 8) with the offer: "For the purposes of this part losses represent the difference between the annual amount of cost of sales and annual income amount from sales reflected in financial accounting for all tax period in the relations with the affiliated person.";

part (to add 13) with words ", but without exceeding of the limits set by the Ministry of Agriculture, regional development and the environment for tobacco products of goods items 240210000, of 240220, of 240290000, 2403 and products of ethyl alcohol of goods items 2207, of 2208, and also the limits set by the Ministry of Economy and Infrastructure for oil products.";

add Article with parts (19-2) and (24) the following content:

"(19-2) Without prejudice to provisions of this Article the deduction of the expenses on any payments made for benefit of the worker incurred and determined by the employer on which contributions of compulsory national social insurance were assessed is allowed and the fees of compulsory medical insurance and the income tax from the salary which are due from the employer and the worker are withheld.";

"(24) the deduction of the expenses incurred by the receiver of works on transportation and food of time-workers, in the procedure established by the Government Is allowed.".

10. In part (2) Article 25 of the word "business entities" shall be replaced with words "the managing subjects debtors", and words" (except for financial institutions, the microfinancial organizations and leasing companies)," – words "(except for subjects of the financial sector),".

11. In Article 261:

in part (the word "used" shall be replaced with words 2) "assumed to use";

parts (8) and (to recognize 9) invalid;

part (to state 10) in the following edition:

"(10) Reference of the subsequent expenses / costs connected with repair or development on the current expenses or expenses which are subject to capitalization is made according to National accounting standards or IFRS. Maintenance costs, technical assistance are not repair expenses and belong on current expenses.";

in part (words of "cost basis" shall be replaced with words 14) "the entrance cost";

part (to recognize 16) invalid;

part (to state 18) in the following edition:

"(18) the Entrance cost of fixed assets is established according to the provisions of National accounting standards or IFRS which are not contradicting provisions of this Code.".

12. Part (Article 42 to add 1) with Item i) the following content:

"i) capital asset value, received without payment if from the corresponding cost the income tax was paid.".

13. Recognize Article 46 invalid.

14. In Article 52:

part (to add 1) with the Item a 1) of the following content:

"a 1) association of co-owners in condominium – according to the Law on condominium in housing stock No. 913/2000;";

in Item d) parts (the words "except for the salary payments performed in its advantage;" shall be replaced with words 2) "except for salary payments or other payments regulated by the labor law, performed in its advantage;";

part (to add 7) with the offer: "Application of this part excludes application of part (6) this Article.".

15. In Article 54-1:

in Item a) parts (the words "from operating activiies on the deliveries exempted from the VAT or the deliveries exempted and liable to VAT, in the amount to 1, one million lei provided that the deliveries exempted from the VAT exceed 50 percent of deliveries, liable to VAT;" shall be replaced with words 3) "on the deliveries exempted from the VAT without the deduction right or on the deliveries exempted from the VAT without the right of deduction and liable to VAT in the amount to 1,2 of one million lei provided that the deliveries exempted from the VAT without the deduction right exceed 50 percent of all deliveries;";

in part (31) word "exempted from the VAT", shall be replaced with words "exempted from the VAT without the deduction right,".

16. In Article 54-2:

in part (1) word "from operating activiies", shall be replaced with words ", determined according to financial accounting,";

add Article with part (3) the following content:

"(3) do not join In the taxation object:

a) income from subsidies;

b) income from compensation of material damage;

c) the income from excesses of the non-current and current assets established in case of inventory count;

d) the income from clearing settlements of debts with expired prescriptive limit in the relations with affiliated persons;

e) income from dividends;

f) the income from indemnification as a result of disasters and other extraordinary events;

g) the income gained from compensation or write-off of percent and/or penalty fee, representing the expenses which were not deductible in case of calculation of the taxable income during application of general regime;

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