The tax treatment of employer-issued meal vouchers as of 2020 means a sudden modification of the rules of the game, with a major impact on issuers and traders. It is also a negative signal that will affect the business community’s and potential investors’ confidence in the stability and predictability of regulations in Moldova. Moreover, the 24% tax on meal vouchers will contribute to lower state budget revenues, says a study commissioned by the American Chamber of Commerce in Moldova, the European Business Association, the Romanian Investors Association and the Chamber of Commerce and Industry France-Moldova to the polling company “Date Inteligente”.
In a news conference at IPN, “Date Inteligente” director Mihai Bologan said the quantitative study covering companies that provide meal vouchers shows 62% of these companies will definitely stop issuing meal vouchers as of January 1, 2020 if the tax is imposed. Another 14% of the companies are not yet sure about this. “Asked if they accept the tax treatment of meal vouchers as of January 1, both the employers and the employees said they are categorically against. And the opinions converge: 95% of the employees and the employers are against the tax treatment. However, if they accept a tax on meal vouchers, some of the operators and the employers are ready to pay taxes on meal vouchers, but not higher than 12%,” stated Mihai Bologan.
“It was regrettable for us to learn that more than 50% of the companies, those employers that now offer meal vouchers, will have to give up providing this benefit to employees when this is taxed,” stated Mila Malairău, executive director of AmCham Moldova. She noted there are companies with hundreds and thousands of employees and a long administrative process behind the decision of each company, especially foreign investors. Now they have to review their attitude to this benefit or to even abandon this.
Anna Djurinscaia, fiscal policies manager at the European Business Association, said the meal vouchers became in important social tool. “Meal vouchers became a very effective stimulus used by employers and this aspect is very important given the continuous exodus of employees from the Republic of Moldova. If we refer to the attraction of investment, it is very important and absolutely necessary to ensure the predictability of the fiscal policy,” stated Anna Djurinscaia.
Dan Nuțiu, executive director of the Romanian Investors Association, stated the meal vouchers in Romania are also taxed, but the measure was introduced ten years after the launch of such vouchers. Over 50% of the labor force in Romania currently use meal vouchers. “It is also about that indirect impact. These investors (three of the four come to Moldova through Romania) came and invested money based on a law approved by the Government. It goes to millions of euros. Now they have to practically withdraw, according to this study. The people will not continue to apply,” explained Dan Nuțiu.
Chamber of Commerce and Industry France-Moldova executive director Adrian Cibotaru said the meal vouchers first of all give advantages to employees with small and medium incomes and are an indirect source of important revenues for the state obtained by redirecting the commercial flows to the declared economy that generates fiscal revenues through the payment of VAT or creation of jobs.
The study authors recommend the authorities to avoid studently amending the taxation system as this can affect the business community’s and potential investors’ confidence in the national economy.
