2008 promises to be a year full of surprises and innovations in the fiscal domain, at least this is what the Ministries of Economy and Finance that thought of a true economic revolution, promise us. Everything started since 2007, when the Government canceled all the company’s fiscal debts until January the 1st 2007, thus beginning a new stage, which, they hope it will be more productive. This Reform is called “Fiscal Amnesty”, and its main purpose is to help and promote the companies that cannot function normally because of the debts to the State’s budget. The purpose is to develop the local business environment, but also to increase the main economic indicators, thus creating the premises for attracting local and foreign investments.
2008 promises to be a year full of surprises and innovations in the fiscal domain, at least this is what the Ministries of Economy and Finance that thought of a true economic revolution, promise us. Everything started since 2007, when the Government canceled all the company’s fiscal debts until January the 1st 2007, thus beginning a new stage, which, they hope it will be more productive. This Reform is called “Fiscal Amnesty”, and its main purpose is to help and promote the companies that cannot function normally because of the debts to the State’s budget. The purpose is to develop the local business environment, but also to increase the main economic indicators, thus creating the premises for attracting local and foreign investments.
The main innovation is establishing the “ZERO” shares, at the corporative reinvested profit. Therefore, if the companies decide to reinvest the economic result, no more profit tax needs to be paid, thus increasing the volume of the investment in the internal activity, stimulating the development of the local companies, and attracting new businesses. In the case of foreign investments, this Reform is particularly interesting, because, in the first phase of the investment, the investor is interested in its development as volume and value. However, if the founders of this company decide the distribution of the shares, a tax of 15% from the total value must be paid.
Another innovation is “Legalizing the capital”, a Reform necessary to understand how much Moldova’s economy costs. Therefore, until December 31st 2008, any company or normal person can declare its company’s undeclared capital, without paying fines, including the payment of the estate’s true value, but paying a 5% tax, coming from the difference between the new declared value and the prior estimated value. From the resident’s point of view, the positive effect is that their activity can become legal without being punished, and this Reform can give foreign investors a safe ground, compared to the residents and the State.
There will also be modifications in the labor domain. The employers will pay 24% from the salaries for social insurances (compared to 25% in 2007, or 29% in 2003), and the employees 5% (compared to 4% in 2007). The medical insurance will cost 3% for the employer and for the employee. The effects will be felt next year.