Moldova corporate tax - guide for international expansion

Are you considering expanding your business operations to Moldova? Understanding the corporate tax landscape is crucial for any international business looking to establish a presence in this Eastern European nation.

Moldova offers a competitive corporate tax environment within Europe, making it an attractive destination for businesses seeking growth opportunities. Whether you're planning to set up a subsidiary or expand your existing operations, having a clear grasp of the tax obligations and compliance requirements will help ensure your business runs smoothly and remains compliant with local regulations.

If you're managing international payments and need efficient cross-border transaction solutions, Wise Business can help streamline your financial operations while you navigate Moldova's corporate tax requirements.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Moldova Corporate tax rate in 2025

Moldova maintains a competitive corporate income tax rate of 12% for most businesses operating in the country. This rate applies to the taxable profits of resident companies and is significantly lower than in many other European countries, making Moldova an attractive jurisdiction for business investment.¹

The 12% rate is a flat rate that applies to most corporate entities, providing simplicity and predictability for business planning. This competitive rate has been maintained to encourage foreign investment and support economic growth in the country.¹

Resident companies in Moldova are subject to corporate income tax on their worldwide income, while non-resident companies are typically taxed only on income derived from Moldovan sources. The tax is calculated on the company's net profit after allowable deductions and expenses.¹

There are some special provisions available for certain types of businesses. Farming enterprises benefit from a reduced corporate tax rate of 7%, while small and medium-sized companies that meet specific eligibility criteria and are not registered as VAT payers may opt for a special regime of 4% on their aggregated income. These simplified schemes are intended to ease the tax burden on smaller businesses and the agricultural sector.¹ Additionally, residents of Moldova’s IT Park benefit from a unique taxation model, a 7% single tax on turnover.²

How to pay corporate tax in Moldova

In Moldova, the tax year for corporate income tax (CIT) purposes is normally the calendar year, running from 1 January to 31 December. Taxpayers may choose a different fiscal period only under specific conditions. An annual CIT return must be submitted by the 25th day of the third month following the end of the tax period. For companies using the calendar year, this means by 25 March of the following year.³

Companies are also required to make interim (advance) CIT payments during the year. These payments must be made no later than the 25th day of each three-month period of the current tax year and are generally equal to 25% of either the estimated tax for the current year or the previous year’s total tax liability.³

For payroll and other taxes withheld on employee income paid by Moldovan employers, the relevant declarations and payments must be made monthly, no later than the 25th day of the month following the reporting month.³ Payments and filings must be submitted electronically through approved systems designated by the State Tax Service.⁴

If tax returns are filed late or contain inaccuracies, fines and penalties apply. An unadjusted return may result in a fine ranging from 20% to 30% of the understated tax, and deliberate tax evasion can lead to significantly higher penalties or criminal sanctions.³

Let's calculate the annual tax liability for a company with a turnover of 1.5 million MDL. Assuming a profit margin of 10%, the taxable profit would be 150,000 MDL. At Moldova's corporate tax rate of 12%, the annual tax due would be: 150,000 MDL × 12% = 18,000 MDL

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Tax Compliance in Moldova

Businesses must follow Moldova’s clear VAT and corporate tax framework to stay compliant with its tax regulations.

Register for VAT and file returns on time:

Companies must register for VAT if their annual turnover exceeds MDL 1.2 million. Those under the threshold can still opt for voluntary registration if they plan to provide taxable services. All VAT-registered companies must file monthly electronic tax returns and settle VAT payments by the 25th day of the following month.⁵

Corporate tax compliance:

The corporate income tax (CIT) year follows the calendar year, though new entities can adjust their fiscal period under certain conditions. Annual CIT returns must be filed by the 25th day of the third month after the tax year ends, while interim payments (each covering 25% of the expected or previous year’s CIT) are due quarterly. This structure helps Moldova align with international tax practices, including efforts to curb corporate tax avoidance and adapt to global minimum corporate tax standards.³

Payroll and penalties:

Employers must report payroll taxes monthly by the 25th day, with salaries subject to a 12% personal income tax. Non-compliance can result in heavy fines, from MDL 500 for late tax returns to as high as MDL 15,000 for not using cash registers.³

Businesses can confidently operate within Moldova’s evolving tax landscape by maintaining timely filings and transparent reporting.

International Expansion to Moldova

Moldova is strategically positioned between Romania and Ukraine. It provides access to both EU and CIS markets through an extensive network of 47 free trade agreements, giving companies an entryway to over 800 million consumers.⁷

The country has six Free Economic Zones and ten industrial platforms, making it an attractive base for export-oriented manufacturing. Global players like Lear Corporation and Dräxlmaier have already established operations to benefit from duty-free imports and favourable tax incentives.⁶

The country’s rapid progress toward EU membership by 2030 further strengthens investor confidence. As an EU candidate, Moldova is treading toward a major reform journey supported by a €1.9 billion EU Growth Plan to improve infrastructure, digital transformation, and entrepreneurship. Over 65% of public business services are digitised, and registering a business can be done online within 24 hours using an e-signature.⁷

Beyond its policy reforms, Moldova’s thriving ICT sector, responsible for 7.1% of GDP in 2024, demonstrates its digital readiness.⁷ Coupled with a multilingual workforce (where over 80% speak at least two languages, including English and French), businesses find integrating into the European market easier.⁷

To start a business in Moldova, you can follow these basic steps:⁸

1. Conduct market research to understand local demand, competition, and consumer behaviour.
2. Create a business plan that aligns with Moldova’s evolving market landscape.
3. Choose your business location and define your entity type.
4. Register your company through the Public Services Platform (ASP). The process can be completed online within 24 hours.
5. Obtain your tax ID, which is automatically assigned during company registration.

Moldova combines strong investment potential with ease of mobility. Its growing connectivity and visa-friendly policies make travelling to and within the country simple, creating a suitable environment for international business expansion.

Incorporation of Business in Moldova

To incorporate a business in Moldova, investors must register their legal entity with the Public Services Platform (ASP). This is the country’s one-stop hub for business formation and documentation. The process is efficient and fully digitalised, allowing registration in as little as 24 hours.

Steps to Register a Legal Entity⁹

Choose and reserve a company name

• The name must be unique and not already in use. Availability can be checked online through the ASP portal or verified at an ASP counter.
• Once approved, the name can be reserved for six months to allow time for preparing the necessary documentation.
• Required documents include the founder’s identity document, name reservation application, and payment receipt for the reservation fee.

Draft the company statute (Articles of Association)

• The statute defines the company’s internal structure, ownership, share capital, and decision-making processes.
• It must include founder details, company name, business scope, share capital, and procedures for reorganisation or dissolution.

Register the company with ASP

• Submit the application form, copies of passports for directors and founders, the approved statute, and the decision of incorporation.
• If the founder is a foreign entity, supporting documents such as the extract from the foreign company register must be notarized and apostilled.
• Details of beneficial ownership are declared in front of ASP representatives.

Business Entity Types in Moldova

Business law in Moldova is mainly guided by national laws, with the Constitution of the Republic of Moldova as its main base. The main entities working in Moldova are:^{10 11}

• Limited Liability Company (SRL): The most common business form, suitable for small and medium enterprises. It requires at least one founder and has no minimum share capital. Shareholders’ liability is limited to their contributions.

• Joint-Stock Company (JSC): Designed for larger businesses.

• Open JSCs can publicly trade shares with a minimum capital of MDL 20,000 (≈EUR 1,300).

• Closed JSCs have limited share transfer rights and a minimum capital of MDL 10,000 (≈EUR 650).

• General Partnership: Formed by up to 20 partners with unlimited liability.

• Limited Partnership: Includes general and limited partners; only the latter’s liability is restricted to their investment.

• Sole Proprietorship: A simple structure where the owner assumes full responsibility for all debts and obligations.

• Cooperatives, State, and Municipal Enterprises: Used for community, agricultural, or government-led projects.

• Branches and Representative Offices: Foreign companies can establish local branches (liable under the parent company) or non-trading representative offices for research or marketing.

Moldova’s incorporation framework offers transparency, ease, and compliance. A competitive Moldova corporate tax rate and potential eligibility for corporate tax refund schemes under bilateral treaties support it.

International corporate tax best practices

Successful international tax management requires a comprehensive approach that addresses compliance, efficiency, and strategic planning across all jurisdictions where your business operates.

Maintaining compliance with local tax laws should be your primary focus. This means understanding filing deadlines, payment requirements, and documentation standards in each country. Regular consultation with local tax advisors and staying updated on regulatory changes helps prevent costly compliance failures and penalties.

Effective record-keeping is fundamental to international tax management. Maintain detailed financial records that clearly separate income and expenses by jurisdiction, and ensure all supporting documentation is readily available for tax authorities. This preparation significantly reduces the complexity of tax filings and audit processes.

Consider the impact of double taxation treaties when structuring your international operations. Many countries, including Moldova, have agreements in place to prevent the same income from being taxed twice. Understanding these treaties can help optimise your overall tax position while remaining fully compliant with all applicable laws.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Moldova efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Moldova

Who is liable for corporate tax in Moldova?

All resident companies incorporated in Moldova are liable for corporate income tax on their worldwide income. Non-resident companies are subject to tax only on income derived from Moldovan sources, such as business profits from a permanent establishment or certain types of passive income.

Are there any tax incentives for businesses in Moldova?

Moldova offers various tax incentives, particularly for specific sectors. Farming enterprises are subject to a reduced corporate tax rate of 7%. Small and medium companies that are not registered as VAT payers and meet specific criteria may opt for a special corporate tax regime of 4% on their aggregated income. Additionally, certain types of income are considered non-taxable, including contributions to capital, income from government-approved grant programmes, and income from international projects that contribute to education and research development.

What is the tax treatment of dividends in Moldova?

Dividends paid by Moldovan companies to other Moldovan legal entities out of profits earned from 1 January 2012 are not treated as taxable income for the recipient company. For dividends distributed out of profits earned during the period 2008-2011, a final withholding tax of 15% applies. Generally, dividend payments (to resident individuals, non-residents or resident legal entities, depending on treatment) are subject to a withholding tax of 6% when sourced from profits earned since 2012. Dividends received by a Moldovan resident company from a foreign legal entity are included in its taxable income under the general corporate income tax rules, with a credit allowed for foreign taxes paid within prescribed limits.

What is the process for registering for corporate tax in Moldova?

Companies must register with the State Tax Service of Moldova as part of their business incorporation process. This registration establishes the company's tax obligations and provides the necessary identification numbers for tax reporting. The registration process typically involves submitting incorporation documents and completing tax registration forms with the relevant authorities.

What are the common pitfalls to avoid regarding corporate tax in Moldova?

Common mistakes include failing to submit tax returns by the deadline of 30 April, which can result in fines of 200-400 MDL per tax return (but no more than 2,000 MDL for all late submissions). Companies should also avoid providing false or incomplete information in tax returns, as this can result in additional fines from tax authorities. Other pitfalls include incorrectly calculating taxable income, missing monthly withholding obligations for employee taxes (due by the 25th of each month), and failing to maintain proper documentation for expenses and deductions.

Sources used in this article:

1. PwC Tax Summaries: Moldova Taxes on Corporate Income
2. PwC Tax Summaries: Moldova Tax Credits and Incentives
3. PwC Tax Summaries: Moldova Tax Administration
4. State Tax Service (SFS): Online Payment Portal
5. PwC Tax Summaries: Moldova Other Taxes
6. U.S. Trade.gov: Moldova Market Opportunities
7. Top Africa News: 10 Reasons Why Moldova is the Next Strategic Investment Destination (2025)
8. Invest Moldova Agency: Invest Information
9. Invest Moldova Agency: Registering a Business in Moldova Q&A
10. Lawgratis: Business Law in Moldova
11. Company Formation Moldova: Company Types in Moldova

Sources last checked 28/10/2025