The Foreign Investors Association (FIA) is endorsing the amendments proposed to the Law on Entrepreneurial Patent that will not only lead to the annulment of the entrepreneurial patent itself, but will also introduce a novel notion into Moldova’s Fiscal Code, that of “independent activity”.
The “independent activity” notion involves a simplified taxation regime and easier rules of conducting independent commercial activity for individuals: such businesses will be registered following a simple request submitted to the territorial body of the State Fiscal Service, the taxable revenue threshold will be doubled, revenue will be taxed at a 1% rate (additionally, the expense of buying a fiscal memory device will be subtracted from the amount owed in tax income), and individual entrepreneurs will be exempted from local taxes.
The new amendments also propose introducing the requirement for individual entrepreneurs to use fiscal memory devices, which will enhance the accuracy of evaluating revenue from independent activities, while also ensuring consumers’ rights.
Therefore, the new measure means enhanced transparency in commercial activities without adding to the tax burden of the entrepreneurs engaged in such activities.
FIA has always been a promoter of fair competition practices and of transparent and clear rules in doing business. At the same time, it is well known that the existing patent-based system, with its very loose bookkeeping and reporting rules, has been a fertile ground for unrestrained tax evasion and illicit trade, hampering our country’s economic growth.
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The Foreign Investors Association (FIA) is a Moldovan non-profit founded in September 2003, with OECD support, by the largest foreign investors present in our country.
The Association brings together the largest companies with foreign capital in the republic that offer a large variety of products and services ranging from agriculture, to industry, telecommunication, distribution, to audit and legal counseling. The Association’s mission is to promote an attractive and sound environment for foreign direct investment by maintaining constant dialogue between investors and relevant decision makers.
