The draft fiscal and customs policy for 2017 was approved by the parliamentary commission for economy, budget and finance on November 23, IPN reports.

The bill suggests mechanisms for reducing the forecast effect of inflation on the incomes of the population.

In particular, the personal exemption and the exemption for maintained persons, deducted from the taxable income of the person, will be increased by 5% in 2017 by adjusting these to the rate of inflation projected for this period.

It is planned that the base amount of income that is not subject to tax will rise from 29,640 lei in 2016 to 31,140 lei in 2017. An income tax of 7% will be imposed on incomes lower than 31,140 lei and a tax of 18% will be put on larger incomes.
 
The personal exemption for participants in the Chernobyl accident cleanup, the battles for Moldova’s territorial integrity and the Afghanistan war, invalids of the first and second degrees, victims of political repression who were later rehabilitated and other associated categories of people will rise from 15,060 lei to 15,840 lei.

The document envisions the extension of the period during which tax returns can be submitted up to April 30, from March 31 at present.

Also, there will be instituted a common fiscal regime for taxing incomes from advocacy at the lawyer’s office or law firm and from work of public notary, bailiff, mediator at private mediator’s office, legal expert and authorized interpreter. Exemptions will be introduced for activities performed by professional associations of representatives of professions related to the legal system.

The bill also envisions the introduction of a simplified fiscal regime for taxing the incomes of private individuals, who earn incomes from independent trading activities with other private individuals, without representing a legal organizational form of entrepreneurial activity. The amendment is aimed at supporting private individuals start the own business and at eliminating the difficulties related to trading based on patent that will be banned as of January 1, 2017.

Thus, under the simplified fiscal regime, the private individuals who earn incomes from independent trading activities will pay a tax that will be directly proportional to the size of sales revenues. This will represent 1% of the tax base.

Among the concessions provided to the business community are the adjustment of the administration period that can be different from the calendar year, transferring of the VAT on services provided on a regular basis to a bank account, exemption of the authorized business entities from paying income when the payment term for import operations is extended. The tax concessions for IT companies will be extended until 2020.

The document envisions an annual rise in the excise duties on tobacco products. The excise duties on oil products will be increased, while those on alcoholic beverages will be adjusted to the rate of inflation for the next three years. The fact that the excise duties are set for three years ensures a higher predictability level for businesses and the state budget incomes.

The draft fiscal and customs policy for 2017 is to be adopted by Parliament.