Finance Ministry suggests imposing common tax on royalties

A common tax of 12% on royalty incomes coming from copyright may be introduced from 2013. This tax will be levied from all the categories of taxpayers that earn royalties – private individuals and economic entities residing in Moldova and abroad. The proposal is contained in a bill with amendments to a number of laws concerning the fiscal and customs policies for the next year that was published on the Finance Ministry’s website, Info-Prim Neo reports. For the private individuals who are residents of Moldova, it is suggested introducing the final tax deduction from royalties at source. This will eliminate the necessity of submitting income statements when earning such kinds of incomes. The preliminary tax deduction from royalties at source may be annulled for resident economic entities. These earnings will be included in the gross income of the company and will be taxed according to the general norms (12%). According to the Finance Ministry, the changes to the method of taxing the royalty incomes are aimed at simplifying tax administration and preventing tax evasion.