ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of August 22, 2014 No. 697

About approval about income tax withholding from the salary and other payments performed by the employer for benefit of the physical persons which are not performing the business activity connected with the performed work

For the purpose of accomplishment of provisions of articles 15-1, 88 and 92 of the Tax Code No. 1163-XIII of April 24, 1997 (repeated publication: The official monitor of the Republic of Moldova, 2007, special release), with subsequent changes and amendments, DECIDES: the Government

1. Approve Regulations on income tax withholding from the salary and other payments performed by the employer for benefit of the physical persons which are not performing the business activity connected with the performed work it (is applied).

2. This Resolution comes into effect since September 1, 2014.

3. Recognize invalid the Order of the Government No. 10 of January 19, 2010. "About approval of the Regulations on income tax withholding from the salary and other payments performed by the employer for benefit of the worker and the forms confirming income tax withholding at payment source" (The official monitor of the Republic of Moldova, 2010, Art. No. 11-12, 53), with subsequent changes.

Approved by the Order of the Government of the Republic of Moldova of August 22, 2014 No. 697

Regulations on income tax withholding from the salary and other payments performed by the employer for benefit of the physical persons which are not performing the business activity connected with the performed work

Chapter I. General provisions

1. The purpose of the Regulations on income tax withholding from the salary and other payments performed by the employer for benefit of the physical persons which are not performing the business activity connected with the performed work (further – the Provision), consists in regulation of procedure of payments, deduction and payment in the budget of the income tax withheld from the salary and from other payments performed by the employer for benefit of the worker and also payments for benefit of the physical persons which are not performing the business activity connected with the performed work according to provision of the Tax code No. 1163/1997.

1-1. For the purposes of this provision concept "employer" is applied by analogy to "beneficiaries of works" and "units in system of dual education.

2. Subjects of the taxation at payment source based on article 88 of the Tax Code, are:

1) the workers performing the work corresponding to certain specialty, qualification or position, and receiving the salary based on the individual employment contract;

2) the physical persons which are not performing business activity, providing services and/or performing works;

3) persons performing odd unskilled work (time-workers);

4) students are trainees and/or pupils based on the relations regulated by the Code of the Republic of Moldova about education No. 152/2014 and/or the Law No. 110/2022 on dual education.

3. The taxation objects are:

1) for workers – the income in cash and/or not in cash, directed to payment in their advantage in the form of the salary (including awards and the provided privileges), except for releases and deductions to which workers have the right according to the Tax code, and also the income directed to payment in the form of other taxable sources of the income specified in article 18 of the Tax Code;

2) for the physical persons which are not performing business activity, providing services and/or performing works - the income in cash and not in cash, the privileges directed to payment by the employer in their advantage for rendering services or performance of works, and also provided, except for deductions to which these persons have the right;

3) for the physical persons performing odd unskilled work (time-workers) – the remuneration intended for payment to them for implementation of unqualified activities of one-time nature, and also the provided taxable privileges;

4) for students – trainees and/or pupils in system of dual education – the monthly remuneration for professional training paid under the agreement on professional training in system of dual education and also the provided taxable privileges.

4. The employer performing connected with the performed work payment/remuneration (including awards and privileges) shall persons specified in Item 2, taking into account the releases and deductions required by the worker to which he has the right, to estimate, hold from these payments and to transfer into the budget tax in accordance with the established procedure. The employer shall not monitor loss of the right to use personal release.

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