A series of important changes to the Fiscal Code, which concern the income tax, VAT, excise duties, local taxes and fees, came into force on January 1, 2025 in the Republic of Moldova. These changes are meant to bring direct benefits to the citizens and to efficiently regulate the tax system. Here are the main aspects that will influence the population, IPN reports.
Exemptions and facilities for individuals
In 2025, personal and child support exemptions will increase. For example, the personal exemption will rise from 27,000 lei to 29,700 lei, and the one for the maintenance of a child will increase from 9,000 to 9,900 lei. These changes are meant to support families and mitigate the effects of inflation on incomes.
Also, taxpayers will be able to deduct expenses for children's education, health or life insurance and interest on loans for the first home. These deductions will be applied within the limit of an average monthly salary in the economy.
Non-taxable income
Income obtained from capital increases for state securities, as well as income from the sale of a car owned for more than three years, will be exempt from tax. Also, gifts received by employees in the form of vouchers or in kind will not be taxed if their value does not exceed 10% of the average monthly salary. Such categories as minor children of employees and gifts on the occasion of special events (e.g. birthdays) were excluded.
Transparency of local taxes
The tax on real estate and land could be increased by local councils by up to 300% for unmaintained buildings and unworked agricultural land. Instead, the dog tax will be repealed. Individuals will become subjects of the sanitation tax, calculated according to their home address.
Benefits for employees
For employees, employers will be able to deduct expenses for medical services, sports facilities and care for children under three years of age. These measures are designed to encourage the creation of better working conditions and to increase the quality of life.
Higher excise duties on tobacco and e-cigarettes
Excise duties on tobacco products, including e-cigarettes and reserves for heating devices, will be higher. This measure will directly affect smokers, increasing the prices of products in this category. The authorities justify this measure by the desire to reduce tobacco consumption and promote a healthy lifestyle.
These changes will have a significant impact on the daily lives of citizens, but also on the local economy. It is important for the population to be informed and prepared for the new fiscal changes, which aim to ensure better adjustment to the current economic context, IPN reports.
