Tax on economic entities’ incomes will not diminish Moldova’s attractiveness, IMF

The reintroduction of the tax on the incomes of economic entities will not essentially reduce the attractiveness of Moldova before potential investors, considers the IMF’s representative for Moldova Nikolay Gueorguiev, Info-Prim Neo reports. The IMF official said that the tax rate of 12% is lower than the rate used in other countries in Europe. “According to studies, the income tax rate for companies is the fifth factor analyzed by an investor that intends to invest in a country or another,” said Nikolay Gueorguiev. He also said that the fiscal policy for the next year envisions measures aimed at improving the situation of the economic entities. The Ministry of Economy is drafting a new law that will limit the number of inspections at companies. There will be also implemented the principle that the penalty cannot be larger than the damage caused to the budget. ”Despite the identified shortcomings, the investments in the national economy (local and foreign investments) over the first half of 2011 rose by 26% and this is a proof that the investors trust the Moldovan economy,” said Nikolay Gueorguiev. He stressed that effort should be made to further improve the business and investment climate, to remove the barriers to entrepreneurial activities, to identify new sources of incomes and extend the taxation base so as to increase the tax revenues in the country’s budget.