The tax deductions for costs incurred for maintaining and repairing vehicles used by heads of enterprises, executive directors and other managers will be restricted, IPN reports, quoting a bill with amendments that result from the 2015 budgetary-fiscal policy approved by the Government.

Thus, deductions will be allowed from the costs for one vehicle used by each subdivision of the economic entity. It is also suggested taking into account the VAT paid for maintaining and repairing only one vehicle of each subdivision of the economic entity.

“This measure meets the good practices existing in the EU, which we should gradually implement,” said Minister of Finance Anatol Arapu. He gave an example, saying in Moldova there are registered 450 Porche cars, half of which in the name of economic entities. “It’s clear that these vehicles aren’t used in the production activity. That’s why the state budget should not cover these maintenance costs,” he stated.

Tax deduction represents the sum that is deducted from the gross income of the taxpayer when calculating the income tax, in accordance with the fiscal legislation.