Approved by the Ministry of Finance of the Republic of Moldova

The instruction about procedure for calculation and payment in the budget of the income tax for the companies with foreign investments and to foreign legal entities

of December 31, 1993 No. 9-02

General provisions

1. This instruction is published based on the following legislative and regulations of the Republic of Moldova:

- The law "About Bases of the Taxation System" of November 17, 1992;

- Resolutions of Parliament of the Republic of Moldova "About enforcement of the Law "About Bases of the Taxation System" of November 17, 1992;

- The law "About the Income Tax of the Companies" of the December 2, 1992 enacted by the resolution of Parliament "About enforcement of the Law "About the Income Tax of the Companies" of December 2, 1992;

- The law "About Foreign Investments" of April 1, 1992;

- The orders of the Government of the Republic of Moldova "About approval of the List of types of activity in case of which accomplishment to the companies with foreign investments tax benefits, and the Approximate agreement on the tax credit of the companies with foreign investments" of September 7, 1993 are represented to N571.

2. Under action of this instruction the taxation of profit of the companies with foreign investments registered in accordance with the established procedure in the form of joint businesses and their branches, the companies with absolute foreign investments and their branches, and also foreign legal entities gets.

3. Provisions of this instruction do not extend on:

- the bank structures and insurance companies created by the companies and foreign legal entities;

- the physical persons who are foreign citizens and stateless persons and gaining income in the Republic of Moldova who are assessed with the income tax according to the Law "About the Income Tax from Physical Persons" of 3.12.92, the Instruction about procedure for application of the Law of the Republic of Moldova "About the income tax from physical persons" of 1.07.93.

Taking into account features of forming of economic subjects, their status of forms and types of their activities, determination and declaring of financial result and representation of tax benefits, this instruction provides two Sections concerning the profit taxation:

And - Joint businesses, their associations and branches, the companies with absolute foreign investments;

In - Foreign legal entities.

A. The taxation of profit of the companies with foreign investments

I. Taxpayers

4. Taxpayers on to arrive the legal entities registered in accordance with the established procedure - joint businesses, their associations and branches, the companies with 100 percent foreign investments are all located in the territory of the Republic of Moldova (further - the companies).

5. Each of the above-stated structures created by the companies is independent taxpayer and pays the income tax is decentralized.

II. Calculation of leviable profit

6. For calculation of the income tax the balance sheet profit of the company consisting of profit (loss) from sales of products (works, services), goods, fixed assets and other property of the company and the income from the non-operating transactions reduced by expense amount on these transactions is accepted.

7. The profit (loss) from sales of products (works) is determined as difference between proceeds from sales of products (works, services) in current prices, without the value added tax and excises, and the costs for their production and realization included in cost.

In case of cost determination and financial results of the companies it is necessary to be guided by Basic provisions on structure of production costs and sales of products (works, services) included in cost, and about procedure for forming of financial results of the companies, approved by the order of the Government of June 2, 1993 N 340, taking into account the subsequent changes and additions made to it, the instructions and recommendations of the Ministry of Finance concerning accounting and calculation of product cost (works, services) approved with the Ministry of Economics and State Department of the Republic of Moldova according to the statistics.

According to the specified Basic provisions the following procedure for determination of sales proceeds and profit is provided.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info