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					                                       TAX CODE
                              No. 1163-XIII of 24 April 1997



                                    TITLEI
                              GENERAL PROVISIONS



Article 1. Relations regulated by the present Code
(1) The present Code establishes the general principles of taxation in the Republic of Moldova,
the legal status of taxpayers, the tax administration and other participants of the relations
regulated by the tax legislation, the principles for the determination of object of taxation, the
accounting records of income and deductible expenses, as well as procedures of applying
penalties for the infringement of tax legislation and tax regime and appeals against actions of the
tax administration and their officials.
(2) The present Code regulates the relations pertaining to the fulfilment of tax liabilities with
respect to general state taxes (duties) and fees and also establishes the general principles of
assessment and collection of local taxes and fees.
(3) The terms (definitions) and provisions used in the present Code are applied exclusively for tax
and similar purposes.


Article 2. Tax system of the Republic of Moldova
The tax system of the Republic of Moldova represents a combination of taxes (duties) and fees
imposed by the present Code, as well as principles, forms and methods for their imposition,
modification and cancellation and all the provisions for securing their collection.


Article 3. Tax legislation

(1) The tax legislation consists of the present Code and other legal acts adopted in accordance
therewith.
(2) The regulatory acts adopted by the Government, Ministry of Finance, State Tax Service and
Customs Control Department of the Ministry of Finance, other competent authorities of central
public administration, as well as by the local public administration authorities on the basis of the
present Code and for the purpose of its implementation may not contradict its provisions or go
beyond it.
(3) If contradictions arise between the norms laid down in sub-article (2) and other norms arising
from this Code, the norms of the present Code shall apply.
(4) Taxation shall be carried out in conformity with this Code and other officially published
regulatory acts adopted in conformity with it and effective on the due date for payment of taxes
and fees.
(5) The interpretation (explanation) of provisions of this Code and other regulatory acts adopted
in conformity with it is given by the body that has approved this act, unless otherwise provided in
the respective act. Any interpretation (explanation) is subject to public release.


Article 4. International treaties
(1) If an international treaty which regulates taxation or includes norms which regulate taxation,
to which Republic of Moldova is party, stipulates rules and provisions other than those provided
in the fiscal legislation, the rules and provisions of the international treaties shall be applied.
(2) The provisions of the paragraph (1) shall not be applied in the cases when the resident of the
state with which the international treaty is signed, is used for obtaining tax benefits by a person
who is not resident of the state with which the international treaty was signed and who has no
right for tax benefits.


Article 5. General terms
The following terms shall be applied for tax purposes, without changing the legal status of legal
and physical persons provided by the current legislation:
1) Person - any physical or legal person.
2) Taxpayer, subject to tax - any person who is required, under the tax legislation, to calculate
and/or pay to the budget any taxes or fees, penalties or fines thereto; any person who is required,
under the tax legislation, to withhold or collect from another person and transfer to the budget the
mentioned payments.
3) Physical person:
a) any citizen of the Republic of Moldova , foreign citizen, stateless person;
b) organizational form with status of physical person, according to legislation, including private
entrepreneur, farming entity, unless the present code stipulates otherwise;
4) Legal person – any commercial entity, cooperative, enterprise, institution, foundation,
association, including the one established with participation of a foreigner, and other
organizations, except for the structural subdivisions of the specified organizations having no local
patrimony and organizational form with status of physical person, according to the legislation;
b) a non-resident person who has a significant economic presence in the Republic of Moldova .
5) Resident person means:
a) any physical person who corresponds to one of the following criteria:
i) has permanent place of residence in the Republic of Moldova , including:
- is present here for treatment, on vacation or for study purpose, or on a business trip;
- is an official of the Republic of Moldova posted overseas;
ii) is present in the Republic of Moldova at least 183 days of the taxable year;
b) any legal person or organizational form with status of physical person, the activity of which is
organized or managed in the Republic of Moldova or having a principal place of business in the
Republic of Moldova .
6) Non-resident person means:
a) any physical person who is not a resident according to point (5) letter (a) or, although
corresponding to the criteria stated in the point (5) letter(a) is present in the Republic of Moldova:
- as a person having the status of a diplomatic or consular person or as a member of the family of
such persons;
- as a co-worker of an international organization established on the basis of an interstate
agreement to which the Republic of Moldova is party, or as a member of the family of such co-
worker;
- for treatment or on vacation, or for study purposes, or on a business trip, provided that such
physical person was present in the Republic of Moldova for these purposes exclusively;
- exclusively for purposes of passing from one foreign state to another via the territory of the
Republic of Moldova (in transit);
b) any legal person or organizational form with status of physical person, which does not
correspond to the criteria set in point (5) (b).
7) Individual enterprise – physical person, registered in the established manner, who performs
entrepreneurship activity, without being a legal entity.
8) Farming entity is the agricultural enterprise having the status of a physical person, set up in
conformity with the current legislation.
9) Society – any organization, except joint-stock companies and limited responsibility companies,
which carries out entrepreneurship activity on the basis of partnership and is set up in accordance
with the legislation, which::
a) has not more than 20 members residents or persons that, in the case of death of the members of
the society, shall manage the property of the deceased persons;
b) meets the requirements for the proportional sharing of incomes and losses among the owners of
the capital.
10) Shareholder is any person owing one or more shares of a joint-stock company.
11) Affiliated person is any person owing an equity interest in a legal person.
12) Independent person - member of the taxpayer's family or person who controls the taxpayer, is
controlled by the taxpayer or is under control of a third person. For the purpose of this part:
a) the taxpayer's family includes the taxpayer's spouse; taxpayer's parents; taxpayer's children and
their spouses; taxpayer's grandparents; taxpayer's grandchildren and their spouses; taxpayer's
brothers and sisters and their spouses; taxpayer's great-grandparents; taxpayer's great-
grandchildren and their spouses; brothers and sisters of taxpayer's parents and their spouses;
taxpayer's nephews and nieces and their spouses; brothers and sisters of the taxpayer's
grandparents and their spouses; children of brothers and sisters of taxpayer's parents and their
spouses; children of the taxpayer's nephews and nieces and their spouses; as well as the above
mentioned persons coming from the taxpayer's spouse.
b) control is ownership (either directly or through one or more independent persons) of 50% of
the its capital or of the voting power of a person. In this case, a physical person shall be treated as
owing all equity interests owned directly or indirectly by members of such physical person's
family.
13) Economic agent - any person conducting business activity.
14) Non-commercial organisation - the legal person the activity of which is not aimed at receiving
income and does not use any part of property or income to the interest of any member of the
organisation, founder or individual.
15) Permanent representative office or fixed base – fixed business place through which the
nonresident conducts fully or partially entrepreneurship activity in the Republic of Moldova, or
through an agent with dependant status, including:
a) a management place, branch, representative office, section, office, factory, plant, shop,
workshop, as well as a mine, oil or gas well, a quarry or any other place of extraction of natural
resources or cultivation of agricultural cultures;
b) a building site, construction, assembling or installing project or activities of technical
maintenance, servicing and operation of equipment related to them, only if such a site, project or
activities continue for a period greater than 6 months;
c) commercialization of goods from warehouses located on the territory of the Republic of
Moldova which belong to the nonresident or are rented by him;
d) rendering other services, carrying out other activities, within a period greater than 3 months,
except those treated as representative office, according to the point 20), as well as of the work
performed on the basis of work contract (agreement) and independent professional activity, unless
the present code stipulates otherwise.
e) conducting in the Republic of Moldova of any activity, which complies with one of the
conditions stipulated in the letter a)-d), by an agent with dependant status or holding by this agent
in the Republic of Moldova of a stock of products and goods from which he delivers products or
goods on behalf of the nonresident.
In the context of the present code, permanent representative office of a nonresident physical
person is considered to be fixed base.
 16) Entrepreneurial activity, business means any type of activity according to the legislation,
except for the work performed under the contract (labour agreement), conducted by a person,
aimed at obtaining income, or income is obtained as result of carrying out this activity, regardless
of the purpose of the activity.
17) Services - material and non-material services, consumer and production services, including
property lease, transfer of rights for the use of any goods; works of construction and assembly,
repairs, scientific research works, experimental construction works and other types of works.
18) Contract of financial leasing – any leasing contract, which fulfills one of he following
conditions:
a) risks and benefits related to the ownership right upon the product which makes the object of
leasing to be transferred to the leaseholder at the moment of conclusion of the leasing contract;
b) sum of the leasing installments to represent at least 90% of the value of entrance of the product
transmitted for leasing;
c) leasing contract to stipulate express transfer to the leaseholder, at the moment of contract
expiry, of the ownership right upon the product, which makes the object of the leasing;
d) the leasing period to exceed 75% of the useful functioning duration of the product which
makes the object of the leasing;
From the fiscal point of view, in case of financial leasing, the leaseholder is treated as owner of
goods received in leasing.
19) Operational Leasing Contract – any leasing contract which does not fulfill any of the
conditions of the financial leasing contract.
20) Representative office – the carrying out by the nonresident in the Republic of Moldova of the
types of activity with preparation, auxiliary or another character, in the absence of criteria of
permanent representative office, stipulated in the point 15). To the types of activity with
preparation, auxiliary or another character are assigned particularly:
a) usage of installations, exclusively, for depositing or exposing products or goods belonging to
the nonresident;
b) storage of a stock of products or goods belonging to the nonresident, exclusively for their
depositing or showing;
c) storage of a stock of products or goods belonging to the nonresident, exclusively for their
processing by another person;
d) keeping of a fixed business place, exclusively for goods’ purchasing by the nonresident;
e) keeping of a fixed business place, exclusively for collection and/or distribution of information,
marketing, publicity or survey of the market of goods (services), made by the nonresident, if such
an activity does not represent a basic (ordinary) activity of the nonresident;
f) keeping of a fixed business place for signing by a person on behalf of nonresident of the
contracts, if the signing of the contracts is made in accordance with the written detailed
instructions of the nonresident;
g) the carrying out of the activity stipulated in the point 15 letter b), which shall not exceed 6
months.
21) Market - a system of economic relations established in the process of production, circulation
and distribution of goods, supply of services, as well as the circulation of monetary funds,
characterized by the freedom of subjects to choose the buyer and the seller, establish prices,
develop and tap resources.
22) Wholesale market - type of market where goods and services are usually offered between
persons engaged in entrepreneurial activity who eventually use the goods and services in the
production process or sell them in the retail market.
23) Retail market - type of market where goods and services are offered to the public at large for
final consumption.
24) Distress market - type of market where, because of factors affecting the quality of goods or
services, or such factors as excess supply, damage by natural or other disasters, other exceptional
events or financial difficulties of the seller caused by temporary insolvency, liquidation or
bankruptcy, or similar situations, goods and services are offered for sale at a price lower than the
market established price.
25) Closed market - type of market where sales of goods and services take place between co-
owners or related persons. Prices in a closed market are not evidence of market prices.
26) Market price, market value - the price of goods or service established by the interaction
between offer and supply on the wholesale market on similar goods or services. In the case of
lack of similar goods or services this is the price established as a result of transactions concluded
between persons that are not joint owners or related persons on the respective wholesale market.
Transactions concluded between joint owners or related persons may be taken into account only
provided that the interdependence of these persons does not influence the transaction outcome.
As sources of information on market prices, at the moment of transaction, shall be:
a) information of public and statistical authorities and bodies regulating price formation; when
such information is not available -
b) information on market prices published or made public by mass-media means; in its absence -
c) official data and/or data made public on quotations (transactions registered) set at the stock
exchange which is the nearest to the seller's (purchaser's) headquarters. When no transactions
have been registered at this stock exchange or sales (purchases) took place in a different stock
exchange - information on the quotations set at this stock exchange, as well as information on
quotations set for state securities and state bonds.
The taxpayer shall have the right to present to tax authorities data on market prices when the
goods, services are transmitted, but the tax bodies have the right to use the presented information
if there are reasons to consider it truthful.
27) Discount - reduction in the price of goods, services, currency and other financial assets.
28) Fiscal Code (Identification number) - personal number identifying the taxpayer, which is
assigned as prescribed by this Code. The state identification number, assigned in accordance with
the legislation on registration of enterprises and organizations, is considered fiscal code from the
day of issuance of registration certificate, which attests identity of the state identification number
and of the fiscal code.
29) Subdivision – structural unit of the enterprise, institution, organization (branch, representative
office, subsidiary, section, shop, warehouse etc.), placed outside its main location, which
exercises some of its tasks related to production, storage, procurement, selling of goods and/or
services, performing works.
30) Subdivision code – number assigned by the tax body to the taxpayer’s subdivision in the
manner set by the State Central Tax Inspectorate.
31) Certificate of assigning fiscal code – document confirming the taking to fiscal record-
keeping. Registration certificate, which attests identity of the state identification number and of
the fiscal code, is recognized from the day of issuance as certificate of assigning fiscal code. The
form of the registration certificate is worked out by the Ministry of Informational Development
together with the State Central Tax Inspectorate and is approved by the Government.
32) Compromised debt – debt, which is not refundable when:
a) liquidated economic agent has no successor of rights;
b) legal or physical person that carries entrepreneurship activity, declared insolvent, has no boons;
c) physical person who doesn’t carry out entrepreneurship activity and the farmer’s household or
individual entrepreneur within 2 years from the day of debt appearance has no boons or face
insufficiency of boons which could be collected for paying off this debt.
d) the physical person has died and there are no persons to be obliged by law to honour its
obligations;
e) physical person, including members of the farmers’ household or individual entrepreneur, who
left his domicile and cannot be found during the prescription term established by the civil
legislation.
f) exists the respective document of the Court or of the Department of execution of the court’s
decisions (decision, conclusion or other document stipulated by the legislation in force) according
to which the debt collection is not possible.
The debt shall be qualified as compromised in the cases abovementioned only on the ground of
the corresponding document confirming appearance of the respective circumstance of
involvement in a legal form in accordance with the provisions of the law.
33) Tax facilities (benefits) – the tax or duty sum which has not been transferred to the budget
under the forms established in the art.6 paragraph (9) letter g).
34) Agent with dependent status – any person who, on the basis of the contract with a
nonresident:
a) represents the interests of the nonresident in the Republic of Moldova;
b) acts on behalf of the nonresident in the Republic of Moldova;
c) has and usually uses in the Republic of Moldova the empowerment to conclude contracts or
coordinate their essential conditions on behalf of nonresident, creating as result legal
consequences for the respective nonresident.
35) Agent with independent status – any person who does not meet the requirements of the point
34
36) Professional services – independent scientific, literary, artistic, educative or pedagogical
activities, as well as independent activities of the doctors, legal advisers, engineers, architects,
dentists, auditors and accountants, carried out in accordance with the legislation in force.
37) Capital investments (expenditures) – expenditures made by investor with regard to
procurement and/or improvement of assets on long-run, which are not assigned to the results of
the current period, but are going to be capitalized (assigned to the increase of the value of assets
on long-run).



Article 6. Taxes (duties) and fees and their types
(1) The tax is a compulsory payment with gratuitous title, which is not related to the performance
of some specific and determined actions by the authorized body or the official thereof, for or in
relation to the taxpayer who made this payment.
(2) The fee is a compulsory payment with gratuitous title, which is not a tax.
(3) Other charges (payments) made within the limits of relations regulated under the non-tax
legislation are not treated as compulsory payments, called taxes and fees.
(4) In the Republic of Moldova republican (state) and local taxes (duties) and fees are collected.
(5) The system of republican (state) taxes (duties) and fees includes:
a) income tax;
b) value-added tax;
c) excise taxes;
d) private tax;
e) customs duty;
f) road fees
(6) The system of local taxes (duties) and fees includes:
a) real estate tax;
b) tax for natural resources;
c) fee for territory improvement;
d) tax for organizations of auctions and lotteries on the territory of the administrative-territorial
unit;
e) tax for placing advertising
f) fee for the right to use local symbols;
g) tax for the commercial entities and/or entities rendering services of social service
h) market fee;
i) accommodation fee;
j) resort fee;
k) tax for rendering passenger auto transport services on municipal, city and village (commune)
routes;
k) car parking fee;
m) fee charged to dog owners;
n) tax for improvement of localities from the border zone which have customs bureaus (posts) of
crossing the customs frontier.

(7) Taxes and fees related to taxes and fees mentioned in the paragraph (5) and (6) shall be
regulated by the present Code and other regulatory acts adopted thereunder,
(8) The taxes and fees mentioned in the paragraph (5) and (6) are based on the following
principles:
a) neutrality of taxation – provision of equal conditions to investors, domestic and foreign capital
by the legislation in force;
b) certainty of taxation – existence of clear legal norms, which exclude arbitrary interpellations,
clarity and precision of terms, payment methods and sums for each taxpayer, permitting him an
easy analysis of the influence of his financial management decisions over his fiscal load.
c) equity – equal treatment of physical and legal persons, who activate in similar conditions, for
provision of an equal fiscal load;
d) fiscal stability – performing any modifications and amendments to the provisions of the fiscal
legislation directly through modification and amendment of the present code;
e) tax efficiency – collection of taxes (duties) and fees with minimum expenditures, as acceptable
as possible for the taxpayers.
(9) While setting up taxes and fees the following shall be established:
a) The object of taxation – taxable matter;
b) The subject of taxation (taxpayer) – person specified in the art. 5 point 2);
c) The payment source of the tax or duty – the source from which the tax or duty is paid;
d) taxation unit – the measure unit which expresses the size of the taxable object;
e) The tax rates and fee rates – the unitary tax or fee rate as regards the taxable object;
f) The time-limits for paying taxes and fees – the period within which the taxpayer is obliged to
pay the tax or fee in form of time period or a fixed payment period;
e) Fiscal facilities (benefits) – elements which are taken into account at estimation of the taxable
object, at determination of the tax or fee rate, as well as its collection, in form of:
- partial or total exemption from tax or fee payment;
- partial or total exemption from taxes or fees payment;
- reduced rates of taxes and fees;
- reduction of the taxable object;
- postponements of the term of payment of taxes or fees;
- payment by installments of the fiscal obligation.

(10) Taxes and fees levied pursuant to the present Code and other regulatory acts adopted
thereunder, represent revenue sources of the state budget and of the budgets of administrative-
territorial units. Income tax and road taxes (for the part related to the tax for using the roads by
motor vehicles registered in the Republic of Moldova) represent sources of regulation of
budgetary system incomes. For the autonomous territorial unit with special legal status, the
sources of regulation of budgetary system incomes are also the value-added tax (for the part
related to the value-added tax to the products and services rendered by economic agents from the
autonomous unit) and excise taxes to the goods (production) subjected to excise taxes, produced
on the territory of the following unit.


Article 7. Establishment, modification and annulment of the state and local general taxes
(fees) and duties
(1) The state and local taxes (duties) and fees are imposed, modified or repealed exclusively by
modifying and amending the present Code.
(2) During the fiscal (calendar) year, the establishment of new taxes (duties) and fees in addition
to those provided in the present Code, or cancellation or modification of taxes and fees in force
regarding determination of the taxation subjects, of the taxable base, modification of rates and
application of fiscal facilities are allowed only simultaneously with the corresponding
modification of the state budgets and of the budgets of administrative-territorial units.
(3) The local taxes, the list and limits of local taxes are approved by the Parliament.
(4) The decisions of the public administration authorities – of the municipalities, cities
(communes), as well as of other administrative-territorial units established on the conditions of
the law, - regarding the putting in application, at modification, within the limits of their
competencies, of the rates, manner and terms of payment and at application of facilities, are
passed during the fiscal year simultaneously with the corresponding modifications of the budgets
of administrative-territorial units.
(5) Enterprises, institutions and organizations which have branches and/or subdivisions outside
the administrative-territorial unit where the central headquarte is placed, present for them fiscal
book-keeping reports and pay taxes and fees (except for the value-added tax, excise taxes and
taxes for transfer to the Road Fund) to the budgets of administrative-territorial units from the
places of location of branches and/or subdivisions.
(6) The subdivisions located in the administrative-territorial units, the budget of which is not a
component part of the national public budget, pay taxes and fees to the budget of the
administrative-territorial unit where the central headquarter of the enterprise, institution,
organization is placed.
Article 8. Rights and obligations of the taxpayer
(1) Taxpayer is entitled:
a) to receive from territorial state tax inspectorate and service of collection of local taxes and fees,
free of charge, information about the taxes and fees in force, as well as about other normative
documents that regulate the manner and conditions of their payment;
b) to a fair treatment by the bodies with fiscal administration duties and of their officials;
c) to represent his interests to the bodies with fiscal administration duties in person or through his
representative;

e) to benefit from postponement, payment in installments, passing on account of the taxes in the
manner and conditions stipulated by the present code;
f) to present to the bodies with tax administration duties and their officials explanation on the
computation and payment of taxes and fees;
g) to appeal in the established manner against the decisions, action or inaction of the bodies with
tax administration duties and their officials.
h) to benefit from other rights under the tax legislation.
i) o benefit from tax facilities, for which he has the right according to the tax legislation, for the
fiscal period when he complied with all the established conditions.
(2) Taxpayer is obligated:
a) to comply with the state procedure of registration (re-registration) of an entity and conducting
of an entrepreneurial activity
b) to be registered with the local state tax body covering his headquarter established in the
documents of entity establishment (registration) and to receive its certificate of assigning the
fiscal code, to present the initial information (and to inform about the further modifications)
regarding entity’s headquarter, headquarters of its structural subdivisions, name and headquarter
of the financial institutions where the accounts are opened. The information about the
headquarters of the branches or representative offices is brought to notice also to the fiscal body
in the territorial zone of which their headquarter is located;
c) to perform accounting record-keeping according to the forms and manner established by the
legislation, to draw up and present to the tax body and service of collection of local taxes and fees
the book-keeping reports stipulated by the legislation, to perform financial settlements in cash
using the control and cashier’s machines with fiscal memory (hereinafter – control and cashier’s
machines) in the manner established by the law or to carry out financial settlements by using POS
terminals;
d) to provide true and accurate information about the income derived from any type of business,
and other objects of taxation;
e) to timely and fully remit to the budget, taking into account the provisions of the art.7 paragraph
(5), the calculated sums of taxes and fees, providing exactness and truthfulness of the presented
tax accounting reports;
f) in case of control performed for the purpose of checking the respecting of fiscal legislation, to
present, at first request, to the officials of the bodies with tax administration duties the record-
keeping documents, tax accounting reports and other documents and information about the
conducting of the entrepreneurship activity, the calculation and payment to the budget of the taxes
and fees and granting facilities;
g) in case of control performed for the purpose of checking the respecting of fiscal legislation, to
provide free access to the officials of the bodies with tax administration duties to production
places, warehouses and trading places, to other rooms and places (except the rooms used
exclusively as dwelling place) for their inspection in order to verify truthfulness of data from
accounting documents, book-keeping reports, tax declarations, calculations, as well as to verify
fulfillment of obligations towards the budget;
h) to be present at the control performed for the purpose of checking the respecting of fiscal
legislation, to sign the documents on the results of control, to give explanations in written or
orally;
i) in case of incorrect calculation and incorrect determination by the tax bodies of the sum of the
tax, fine, interest or fine to prove it on the basis of justification documents;
j) comply with the decisions of the bodies with tax administration duties and other bodies
authorized to carry out tax controls on the results of performed controls, respecting the
requirements of the tax legislation;
k) to fulfill other obligations established by the tax legislation.
(3) In case of absence of the entity’s head, the responsibilities stipulated in the paragraph (2) letter
f) and g) are fulfilled by other officials, administrating the subject of taxation, within the limits of
their competence.


Article 9. Tax administration
Tax administration represents activity of the authorized bodies responsible for the complete and
timely collection of all tax (duties) and fees, penalties and fines to the budgets of all levels, as
well as for carrying out actions of criminal proceedings in case there are circumstances which
attest commitment of fiscal offences.


Article 10. Rights, obligations and responsibilities of the tax administration

(1) The organization of the activity and of the functioning of the bodies with fiscal administration
duties are regulated by the legislation of the Republic of Moldova and international treaties
Republic of Moldova is party.
(2) The bodies with fiscal administration duties and their officials who do not fulfill their
obligations in the corresponding manner carry responsibility following the legislation in force.



Article 11. Protection of rights and interests of the taxpayer
(1) The protection of rights and interests of the taxpayer is secured in legal and other forms
provided by this Code and other acts of the current legislation. All uncertainties arising in
application of the tax legislation shall be interpreted in favor of the taxpayer.
(2) The damage (loss) caused to the taxpayers by the body with tax administration duties and its
officials as a result of improper fulfillment of their professional duties shall be compensated
pursuant to the legislation.
(3) The tax bodies shall draw up the materials for refunding to taxpayer the overpayment and the
interest calculated for this sum (including illegal withdrawals from the taxpayer’s accounts under
the decisions of the tax bodies), in the set manner.



TITLE II
INCOME TAX
Chapter 1
General provisions

Article 12. Notions

In the sense of the present code, the following notions are defined:
1) Royalty – regular payment obtained from giving out for use of non-material actives or from
    the right of use of the latter, payment obtained in form of author remuneration in each case of
    implementation of author’s rights and related rights, as well as from the right to use the
    natural resources
2) Annuities – regular payments of the insurance, pensions sums,
       3) Dividend – income resulted from sharing of the net income among shareholders (associates)
          in accordance with their participation share deposited in the social capital, except for the
          income obtained in cases of full liquidation of the economic agent according to the provisions
          of art. 57 line (2). A dividend having the shape of a share shall not be considered a dividend in
          the sense of the present code, as specified by art 56 line (2). The recognition of the payment
          as dividend shall take place regardless of the fact if the legal person did or did not have
          income in the fiscal year during the fiscal year or in the previous years.
       4) Taxable income – gross income, including the facilities granted by the employee, obtained by
          the taxpayer from all sources in a certain fiscal period, except for the deductions and
          exemptions, related to this income, to which the taxpayer is entitled according to the fiscal
          legislation.
       5) Investments income – income obtained from the capital investments and from the investments
          into the financial actives, if the taxpayers’ participation to the organization of this activity is
          not regular, permanent and substantial.
       6) Financial income – income obtained as royalty, annuity, from giving goods for rent, for giving
          away the right of se, from currency exchange rate difference, from the actives that were
          received free of charge, and other incomes obtained as result of the financial activity, if the
          participation of the taxpayer to organization of this activity is not regular, permanent and
          substantial.
       7) Interest, income as interest – any income obtained according to any type of right (regardless
           of the type of conclusion), including the incomes for the money deposits, incomes obtained as
           result of a contract of financial leasing.
       8) Option – condition that provides for the right to choose
       9) Future contract – type of transaction concluded on the securities’ or goods’ market
       10) Distribution – payments performed by an economic agent in the favor of one or more owners
           that have the right to cash in payments
       11) Deduction - sum which shall be deducted from the gross income of the taxpayer according to
          the provisions of the fiscal legislation, at the moment of calculation of the taxable income
      12) Exemption – sum which, at the moment of calculation of the taxable income, shall be
          deducted from the gross income of the taxpayer according to art. 33, 34 and 35
      13) Transfer into the account – amount retained and/or paid in advance, according to the
          provisions of chapters 12, 13, 14 and 15, with which the taxpayer is entitled to decrease the
          amount of the tax
      14) Gains - income obtained from gambling and from the advertising actions, both is monetary
          and non-monetary form.
        1
      14 ) Estimated income – income estimated (resulted) through application of indirect sources and
      methods within the fiscal inspections as consequence of establishment of fiscal posts


Article 12/1 Fiscal period regarding the income tax
       (1) A fiscal period regarding the income tax shall be understood as the calendar year at the end of
           which the taxable income and the amount of tax to be paid are calculated.
       (2) For the newly established enterprises, the fiscal period shall be considered the period from the
           date of their registration until the end of the calendar year.
       (3) For the liquidated or reorganized enterprises, the fiscal period shall be considered the period
           from the beginning of calendar year, until the date of their erasure from the State Registry.


Article 13. Taxation Subjects

       (1) subjects of taxation shall be the legal and natural persons, except for the societies specified at
           art 5 point 9), which, during the fiscal period obtained income from any sources located in
           Moldova, as well as legal entities that obtain income from sources located outside Moldova
           and natural persons that obtain investments and financial income from sources outside
           Moldova
       (2) subjects of taxation are obliged to declare the gross income obtained through all sources


Article 14. Taxation object

   (1) Object of taxation shall be the gross income, including the facilities granted by the employee,
       obtained from legal and natural persons which practice entrepreneurial activity from all sources
       located in Moldova, as well as the income obtained from sources located outside Moldova and
       natural persons-residents that obtain investments and financial income from sources outside
       Moldova, except for the deductions that these persons are entitled to. As taxation income is
       considered the income estimated according to the art. 225
   (2) The income sources are set by chapter 2 and 11
   (3) By derogation from the provisions of lines (1)and (2) of the present article, object of taxation for
       the incomes and gains specified at art. 90/1 line (1), (3), (3³) (34) shall be exclusively this gain
       and/or income.


   Article 15. Tax shares

   The total amount of income tax shall be determined:
   a) for physical persons, including the farmers enterprises and individual entrepreneurs, as follows:
   - 7% from the annual taxable income that is not higher than 25200 lei;
   - 18% from the annual taxable income that is higher than 25200 lei;
   b) for legal persons – 0% from the taxable income
   c) for peasant households and individual entrepreneurs – at the rate of 0 % from the taxable income
   d) for the economic entities, the income of which has been estimated in accordance with the art. 225
   – at the rate of 15% from the surplus of the estimated income against the gross income registered by
   the economic entity in the accounting book-keeping.
Article 15¹ Manner of determination of tax obligations
Determination of tax obligations, in accordance with the provisions of the present title, is made in the
manner established by the Government.


Article 16. Transfer into the account of the taxes

The taxpayer is entitled to transfer into the account the taxes in accordance with chapters 12, 13, 14 and
15


Article 17. Taxation of the income of the deceased owner

   (1) The income of the deceased owner shall be considered as income of the natural person and shall
       be taxed as such, except for the cases provided by line (2), letter b).
   (2) In case of death of a person, resident at the moment of the death:
   a) Owner income (including the income from the estate left after the death of the respective) shall be
       considered income of a single natural person, and art. 15 letter a) shall apply for the fiscal year in
       which the death took place.
   b) Total amount according to the quota of 18% from the taxable income, no exemptions are allowed.


Chapter 2
Composition of income

Article 18. Sources of taxable income

In the gross income the following are included:
    a) income resulted from entrepreneurial activity, from professional or similar activity;
    b) income from the activity of companies obtained by the companies and income obtained by the
        shareholders of the investment funds, according to provisions of chapter 9;
    c) payments for the performed work and rendered services (including salaries), facilities granted by
        the employee, honoraries, commissions, investments and other similar retributions;
    d) income from rent;
    e) capital increase as defined by art 37 line (7)
    f) increases in capital larger than capital losses, not taken into account in other types of income’
    g) income obtained from interests;
    h) royalty;
    i) annuities, including those received on the basis of international treaties Republic of Moldova is
        party; sums and insurance compensations received on the basis of insurance and co-insurance
        contracts and not used according to art 22. Exception shall be those provided at art. 20 letter a)
    j) income resulted from the non-payment of the debt towards the economic agent, except for the
        cases when the formation of this debt is not a result of the insolvency of the taxpayers;
   k) state endowments, primes and prizes which are not specified as not taxable in the laws that
        establish these payments;
   l)   sums obtained as result of an agreement (convention) of non-engagement into the competition
        activity;
   m)   dividends, except those paid in the favour of resident physical persons, related to the fiscal
        periods until January 1, 2008.
   n)   compensations received according to the legislation, as consequence of application of the criminal
        clause, in form of compensation for the missed income and as result of earnest withdrawal or
        earnest reimbursement;
   o)   other incomes that have not been named at the respective letters.


   Article 19. Facilities granted by the employee

   Taxable facilities granted by the employee include:
   a) payments granted to the employed by the employee for the recuperation of the personal expenses
      as well as payments in favor of the worker, made to other persons, except for the payments into
      the budget of the state social insurances and of mandatory state insurance primes;
   b) annulled debt of the employed towards the employee;
   c) sum paid additionally by the employee to any payment of the employee for the housing given by
      the employer.
   d) Sum of the interest, obtained as result of surpassing of the basic interest (rounded to the next
      entire percentage) established by the National Bank of Moldova in November of the previous
      fiscal year: - when refinancing the commercial bank via REPO operations of buying of state
      securities for a term of 2 months – for loans given for a term up to 5 years; - when crediting on
      long term – for the loans given for term longer than5 years; comparing to the interest rate
      calculated for the loans granted by the employer to the employee, according to the terms of
      granting;
   e) Expenses of the employer for the giving for use of the property to the employee for personal
      aims:
   - in case when the goods are property of the employer, the expenses, determined in percents from
      the value basis, for each good given into use, depending on the property category provided at art.
      26 line (6): I – 0,0082%, II – 0,0137%, III- 0, 0274%, IV- 0,0548% and V – 0,0822% for each
      day of use;
   - in case goods are not property of the employer, the expenses of the latter for obtaining the right of
      use of the goods, for each day of use;
   f) payments to the pensions funds, except for those performed into the qualified pensions, provided
      at art. 64 line (1) and art. 69.


Article 20. Non-taxable income sources
The following types of incomes shall not be included into the gross income:
   a) annuities such as social insurance allowances and other compensations, paid from the state
       budget, and social insurance allowances paid from the state budget specified in the legislation in
       force;
   b) compensations received, according to the legislation, as result of an accident at work or as result
       of a professional illness, by the employees or their legal heirs;
   c) payments as well as other forms of compensations granted in case of illness, traumatism, or
       other cases of temporary incapacity of work, according to the contracts of health insurance;
   d) Compensation of expenses of the wage-earners related to the fulfillment of job duties: for the
       apparatus of the President of Moldova, Parliament and its apparatus, the apparatus of the
       Government, within the limits and in the way provided by the President of Moldova Parliaments
       and, respectively by the Government. The compensation of the expenses of the wage-earners of
       the economic agents related to the fulfillment of job duties, within the limits set by the legal acts
       and in the way provided by the Government.
   d¹) reimbursement of compensation expenses and payments related to execution of service
       obligations of military men, troop staff and command staff from the bodies of national defense
       and protection of legal norms, state security and public order on the account of state budget, and
       namely:
       - reimbursement of expenses related to transportation of military men, troop staff and command
       staff from the body of national defense, state security and public order and members of their
       families, of their personal belongings related to employment, work performing and reserve
       discharge (retiring), including the transportation expenses for spa treatment, to the place of
       obligatory leave, as well as of the expenses on transportation of recruits and reservists for call-up
       or mobilization;
       - transfer indemnity;
       - unique installation indemnity;
       - unique indemnity paid to the graduates of military education institutions;
       - financial compensation for renting dwelling place;
       - financial compensation for procurement or construction of dwelling place;

   d²) sums received by physical persons and legal entities as compensation for the damage caused
       and/or missed income as result of carrying out archeological researches on the fields owned or in
       possession of these persons;
   d³) sums received by physical persons and legal entities as compensation for the damage caused as
       result of illegal action (inaction) or as result of some natural calamities, man-caused catastrophes,
       cataclysms, epidemics and epizooties.
   d4) sums received by owners or holders of goods requisitioned for public interest, for the period of
       requisition, according to the legislation;
   e) Scholarships of pupils, students and persons that perform post-graduate studies or specialized
       post-graduate studies at private or state institutions, according to the legislation on education,
     established by these education institutions, as well as the scholarships granted by the
     philanthropic organizations, except for the retribution for the teaching or research activity, single
     compensations granted to young specialists employed, according to the repartition system, to the
     rural localities;
f)   Alimentary pensions and compensations for children;
g)   Dismissal compensations set according to the legislation;
h)   Nominative compensations paid to all categories insufficiently assured, socially vulnerable, as
     well as payments to the social insurance that can not be paid as annuities.
i)   Property received by natural persons, citizens of Moldova as donation or inheritance;
j)    Incomes from receipt of property free of charge, including the financial means, according to the
     decision of the Government or of the competent authorities of the local public administration;
k)   this point has been excluded
l) Help means received from philanthropic organizations – foundations and public associations – in
   accordance with the provisions of the statute of these organizations and of the legislation;
m) Contribution to the capital of an economic agent, as provided by art. 55;
n) Incomes of the diplomatic missions and other equated to them missions, of organizations of
   foreign states, of international organizations and its personnel;, provided at art. 54;
o) Sums that blood donors receive from state medical institutions;
p) “is excluded”
p/1) gains from the advertising actions, in the part in which the value of each gain is not larger than
10% from the indicator stated at art. 33 line (1);
q) financial means paid, as single material help to repair the damage, to some categories of public
    functionaries or their families, in accordance with the legislation;
r) material help obtained by natural persons from the reserve funds of the Government, of the local
    public administration authorities, from the means of the Republican Fund and local funds of
    social support of the population, as well as from the means of the trade unions, in accordance with
    the regulations that provide for the granting of such a help;
s) financial help obtained by sportsmen and coaches from the International Olympic Committee, as
   well as the prizes obtained by sportsmen, coaches and technicians at international sport
   competitions, sport scholarships and indemnities for preparation and participation in official
   international competition”;
t) financial help obtained by the National Olympic Committee and by the profile sports federations
   from the International Olympic Committee, European and international profile sports federations
   and other international sports organizations;
u) national prize of the Republic of Moldova in the field of art, architecture, science and technique,
   as well as the prizes for pupils and animating teachers, in the amounts provided in the normative
   documents in force, for the successful results obtained at the competitions and rayon, city,
   municipal, zonal, republican, regional and international contests;
v) incomes obtained from the administration of the free economic zone;
w) compensation given to members of households (families) for the participation at selective
    inquires performed by statistics bodies;
x) incomes of natural persons obtained from the activity based on entrepreneur patent;
y) incomes obtained by the natural persons, except for the individual entrepreneurs and farmers
    households, from giving away secondary raw material ;
z) incomes obtained as result of use of fiscal facilities;
z/1) sums amounting to 15% from incomes, until their taxation, of the cooperative enterprises and
organizations that are part of the consumption cooperation of repartition of the development fund of
the technical-material basis of these organizations and enterprises;
z/2) financial means obtained from the special funds and used in accordance with the destination of
the funds;
z/3) compensations for moral damages.
z/4) income received as result of canceling the debts to the national public budget;
z/5) money allowance of the military men of fixed period service, of the pupils and students of the
military education institutions.
z/6) incomes received as result of the caused material damage, in the part, in which the provided
compensation does not exceed the caused material damage;
z/7) payment of the deposits guaranteed from the Fund of deposit guarantee in the banking system,
according to the Law no.575-XV from December 26th, 2003 on guarantee of deposits of physical
persons in the banking system.”
z/8) incomes in form of royalty of the physical persons aged 60 years and more.
Article 21. Special rules regarding the income

(1) Income obtained as non-monetary from shall be evaluated by each taxation subject and shall
    constitute the average value of the price of delivery of goods and/or of render of similar services
    for the previous month in which the income as non-monetary form was obtained. In case when for
    the previous months in which non-monetary income was obtained, no goods delivery and/or
    render of services have been performed, the non-monetary income can not be smaller than the
    price of the goods delivered and/or services rendered in the current month.
(2) In case of annuities, the share of any annuity that is included into the annual income shall be
    deducted at the calculation of the taxable income. The deduction is equal to the amount poured by
    the taxpayer into the non-state pensions fund qualified and not deducted from the gross income
    according to art 66 line (2), s well as the amount of insurance payments paid by the taxpayer
    natural person in accordance with the insurance and co-insurance contracts and shared to the
    number of years presupposed for the payments to be due (from the moment when the payment of
    annuities has started).
(3) In case of performance of operations in foreign currency:
1) When calculating the taxable income, the gross income and other payments, as well the expenses
    handled in foreign currency shall be recalculated in national currency at the exchange rate of the
     National Bank of Moldova t the date of the transaction. For some groups of operations, the
     Ministry of Finances can set an average exchange rate.
2)   Any debt both of the taxpayer as well as towards the taxpayer, whose main sum (without interest)
     is expressed in foreign currency, shall be recalculated according to the market prices and shall be
     considered as sold by the taxpayer in the last day of the fiscal year at the market price at that date.
3)    Any income obtained as result of presumed selling of the debt, according to point 2) shall be
     considered usual income obtained in the last day of the fiscal year, and the value basis of these
     debt of the taxpayer or towards the taxpayer shall become its market value.
4)   Operations in which payment obligations in foreign currency intervene shall be referred to:
a)   expenses that shall be paid or the income that shall be obtained as result of the calculations;
b)   futures contracts, optional contracts and other similar financial operations.
5)   The way of calculation of the fiscal obligations shall be set by the Government.



Article 22. Non-recognition of the income in case of forced loss of property

(1) At replacement of a property with another property of the same type due to forced loss shall not
    be considered as income.
(2) In case of non-recognition of income in accordance with line (1), the value basis of the
    replacement property shall be considered the adjusted value basis of the replaced property.
(3) The property shall be considered lost forcefully, if it is partially or totally destroyed, stolen,
    seized or aimed for demolition or if the taxpayer is forced in a certain other way to abandon his
    property de to a danger or imminence of one of the actions or events aforementioned.
(4) The replacement property shall be considered of the same type when it has the same properties or
    is of the same nature as the replaced property (regardless of the fact if it is or is not a property of
    the same level or quality).
(5) The replacement period is the period that expires in the following fiscal ear to the one in which
     the lost has happened.




                                         Chapter 3
                    Deductions related to the entrepreneurial activity

Article 23. General rule

The deduction of personal and family expenses shall not be allowed except for the cases for which
the present title provides another way of regulation.
Article 24. Deduction of expenses related to the entrepreneurial activity

(1) The deduction of ordinary and necessary expenses handled by the taxpayer during the fiscal year
    shall be allowed if exclusively within the entrepreneurial activity. The limits and manner of
    attribution to the insurance expenses, allowed as deductions of expenses related to the
    entrepreneurship activity for tax purposes, are established by the law.
(2) In case when the expenses handled by the taxpayer comprise expenses related to the
    entrepreneurial activity and personal expenses, the deduction shall be allowed only when the
    expenses related to the entrepreneurial activity surpass the personal ones and only for the part that
    refers directly to the development of the entrepreneurial activity.
(3) The deduction of delegation expenses, of representation, and insurance of economic agents shall
    be allowed in the limits set by the Government.
(4) By derogation from art. 30 the deduction of the sums paid as fees and taxes by the subdivisions
    located in the administrative-territorial units, whose budget is not a component part of the
    national public budget.
(5) The deduction of the sums paid at the payment of lands shall not be allowed.
(6) The deduction of the sums paid when purchasing of property by which the attrition
    (amortization)and towards which provisions of art 26, 28 and 29 apply or when purchasing of fix
    means with exploitation term longer than 1 year shall not be allowed
(7) The deduction of compensations, remunerations, interests, payments for the rent of goods and
    other expenses made in the interest of a family member of the taxpayer, of a person with high
    liability position or of a leader of an economic entity, of a member of an organization or other
    interdependent person, if there’s no justification of the payment of such a sum, shall not be
    permitted.
(8) The deduction of the losses as result of the selling or exchange of property, performance of works
    and render of services, performed, directly or indirectly, among interdependent persons.
(9) The deduction of expenses related to the obtainment of the income relieved from taxation shall
    not be allowed.
(10) The deduction of expenses shall not be permitted if the taxpayer can not certify via documents
    that these expenses were in a certain amount and in the way provided by the government.
(11) The deduction of the sums paid in the interest of the owner of the patent f entrepreneur shall not
    be allowed.
(12) The deduction of payments for over-normative discharges of pollutant substances to the
    environment and over-normative use of natural resources is prohibited.
(13) The deduction of the waste, trash shall be allowed in the limits annually approved by the chief
    of the enterprise.
(14) The deduction of the expenses related to the transmission of property free of charge according
    to the decision of the Government or of the competent local public administration authorities shall
    be permitted.
   (15) The deduction of expenses paid by tax-payers during the fiscal year in form of entrance and
        membership fees meant for the activity of patronages. The deduction limit of these expenses is
        0,15% from the fund of labour remuneration.
(16) Audit institutions as individual entrepreneurs are allowed to deduct the expenses for the audit risk
insurance in the amount of 15% of the income obtained from selling the rendered services in the
reporting year.
(17) The deduction of expenses borne by agricultural enterprises for maintaining the social-cultural
objects in use, according to the norms (average expenses) set for the maintenance of similar institutions
financed from the budgets of administrative-territorial units.


Article 25. Deduction of the interests

   (1) The deduction of the interest shall be allowed in accordance with art. 24
   (2) The deduction of expenses connected to payment of interests by legal entities and physical
       persons is accepted within the limit of the basic rate (rounded until the next whole percent) set by
       the National Bank of Moldova in November in the year preceding the reporting fiscal year,
       applied at the refinancing of commercial banks through repo operations of buying by the state of
       movable goods for a period of 2 months.
   (3) In case of issue of some rights titles after January 1998, the part of the initial discount, with
       regard to the right that is permitted to the issuer to deduct the interest will be equivalent to this
       discount shared proportionally in the fiscal year.


   Article 26. Deduction of calculated attrition

   (1) The size of the deduction of calculated attrition of the estate shall be determined in accordance
       with the present article and with art. 24 and 27.
   (2) The estate on which the attrition is calculated is the material estate reflected in the accountant
       balance of the taxpayer in accordance with the legislation and is used in the entrepreneurial
       activity, whose value decreases presumably as result of the physical and moral attrition and
       whose exploitation period is larger than 1 years and the value – larger than 3000 lei.
   (3) Also shall be considered as estate on which the attrition is being calculated the fix means that are
       object of an operational leasing contract, rent, and concession. In the sense of the present line, by
       investments shall be understood the surplus of expenses related to repair, maintenance,
       improvement and other similar activities, with regard to the respective immovable goods with
       regard to the aforementioned expenses, permitted for deduction in the fiscal year according to the
       way provided by art. 27 line (9).
   (4) From a fiscal point of view, in case of a financial leasing, the indweller is treated as the owner of
       the immovable means received in leasing, and in case of the operational leasing - the landlord
       shall be considered as owner. The calculation and the deduction of the attrition of the immovable
   means that are object of a leasing contract shall be performed by the lodger in case of the
    financial leasing and by the landlord, in case of the operational leasing.
(5) The size of the attrition of the immovable means which shall be deducted shall be determined by
    multiplying the value basis of the immovable means at the end of the period of administration that
    refers to a certain category of property, to the share of attrition provided at line (8). The value
    basis of the immovable means at the end of administration period shall be determined as value of
    the immovable means at the beginning of the administration period, increased with the value of
    the fix means newly purchased and with the amount of corrections and diminished with the sum
    from their selling or with the value basis adjusted in case of donation or forced loss. The value of
    the fix means at the beginning of the administration period shall be considered as with regard to
    the respective category of property and shall be determined as difference between the value basis
    of the immovable means at the end of the previous administration period and the amount of
    attrition calculated of the previous administration period.

(6) The entire estate of the taxpayer shall be reported to one of the categories of estate, in the manner
    set by the law.
(7) The following order of evidence of the estate is being established:
a) for the property reported to category I, the calculation shall be done for each object in particular;
b) for the estate reported to categories II-V, the calculation of attrition shall be performed by the
    application of the share of attrition to the value basis of the respective category. The reporting of
    the property to the estate category shall be performed in the manner set out by the law;
c) for the estate that represents investments performed at the immovable means that are object of an
    operational leasing, rent, concession contracts, the attrition shall be calculated in the way
    provided for the estate category to which the respective immovable means refer.
(8) To each estate category, the following attrition norms shall apply:
Estate category                          Attrition share, %
     I                                         5
    II                                      8
   III                                      10
   IV                                       20
   V                                        30

(9) The calculation of the attrition and the deduction of the later for the maintenance of the vehicle
    shall be performed in the following manner:
a) in case when the value of the vehicle is up to 200.000 lei, the attrition calculated shall be
    deducted entirely, depending on the value of the car;
b) in case when the value of the vehicle is higher than 100,000 lei, the deduction shall be limited to
    the calculated value of the attrition, taking into account the value of the vehicle equal to 100,000
    lei. This provision shall not apply to vehicles used as fix means in the main activity, which is
    service rendering, the depreciation of which is a component part of the sales’ cost.
Article 27. The value of the fix means

   (1) The value of the fix newly purchased means is composed of their purchase price as well as of all
       the expenses related to their purchase, including the transportation, putting together, insurance
       costs and the interests paid or calculated up to the moment of placement of the good in
       exploitation. The value of the fix means related to the estate created with ones own forces
       includes all the taxes and fees, except for the value added tax paid or which shall be paid by the
       registered taxable subjects, the expenses and the payment of the interests related to these fix
       means for the entire period up to their placement for exploitation the value basis of the fix means
       newly-purchased or created with ones own forces and with the sum of the correction during the
       administration period, provided at line (8).
   (2) The means obtained from the selling f the fix means, except for those obtained by the landlord
       from the selling of the fix means that constituted object of an operational leasing contract shall be
       reported to the reduction of the value basis of the respective category of estate. If the stated
       reduction leads, at the end of the administration period, to a negative result for the category of
       estate, then this result shall be included into the income, and the value of the respective estate
       category at the beginning of the administration period shall be equaled to zero. In case of selling
       by the landlord of fix means that constituted object of an operational leasing contract, the value
       basis of the respective category of estate shall be reduced with the value basis of the sold fix
       mean. The income or loss calculated as difference between the sum of the fix means obtained
       from the selling of the fix means that constituted the object of an operational leasing contract and
       their value basis at the beginning of the fiscal period shall be recognized as income or loss of the
       fiscal period in which the selling took place.
   (3) The first inclusion of the fix means to the respective estate property shall be performed at the
       moment of their placing into exploitation.
   (4) The initial value of an estate which is in possession of the taxpayer at the date of 1st January 1998
         shall be its basis value, determined according to art. 38 line (1) and (2), at this date- In such a case
         the calculation of the attrition and all the other adjustments of the value for the previous periods
         shall be done in accordance with the legislation in force in the respective period.
   (5)   If at the end of the fiscal year at the respective category there’s no property or the left sum is
         smaller than 3000 lei, after the performance of the adjustments specified at lines (1) and (2) of the
         present article and of art. 26 line (3), the remaining value shall be deducted.
   (6)   The deduction of the expenses related to scientific research, paid during the fiscal year as current
         expenses shall be permitted.
   (7)   The provisions of line (6) shall not apply towards lands or other goods to which attrition applies,
         as well as any other expenses paid with the aim of discovery or establishment of the placement
         location of the natural resources, determination of their amount and quality.
   (8)   The deduction of the expenses for the repair of property shall be performed as follows:
a) if the expenses handled during the fiscal year for the reparation of the estate are not larger than
    15% of the value basis for each object of the category 1 of property and value basis of the
    categories II-V of property (determined without taking into account the changes during the
    respective fiscal year), the respective expenses shall be permitted for deduction in the respective
    year.
b) If the expenses handled during the fiscal year for the reparation of estate are larger than 10% of
    the value basis of the respective category of estate, the size of the surplus shall be considered as
    expenses for reconditioning and shall be reflected at the increase of the value basis of the
    respective category of property.
(9) By derogation from line (8) letters a) and b), in the respective fiscal period the deduction shall be
    allowed to:
a) roads repair expenses as current expenditures;
b) expenses relating to the repair of fix means that do not correspond to provisions of art. 26 line (2)
    and which are used in the entrepreneurial activity of the economic agent, according to the rent
    contract – expenses that shall be handled, according to the mentioned contract, by the lodger. The
    deduction of the respective expenses shall be allowed within the limit of 15% from the calculated
    sum of the rent payment during the fiscal period.
(10) the value basis of the fix means for each category of property shall be adjusted to:
a) the sum of the value added tax that shall be transferred into the account in accordance with the
    present code, calculated from the balance value of the sold fix means, that are transferred into the
    accountant evidence, with the value added tax;
b) the sum of the remaining value of the fix means in case of transferring them to losses, into the
    accountant evidence, relating to the total attrition.
c) positive differences resulted from the reevaluation performed in accordance with the chapter IV
    of the Law no.1164-XIII from April 24th, 1997 for implementation of the titles I and II of the Tax
    Code.
(11) For tax purposes, the differences from reevaluation of the fixed means are not recognized.


Article 28. Deduction of the amortization of the non-material property
The deduction of the amortization of each piece of non-material property (invention certificates,
author’s rights, paintings, industrial models, contracts, special rights) with limited exploitation term
shall be allowed, calculating their exploitation period using the linear method.


Article 29. Deduction of expenses related to extraction of irrecoverable natural resources

(1) The deduction of the expenses related to the extraction of the natural irrecoverable resources shall
    be permitted according to art. 24 line (1).
(2) Expenses related to the exploration ad exploitation of digging of natural resources, paid bourn
    until the beginning of the exploitation, as well as the payments related to the interest shall be
    reflected at the increase of the value of the natural resources.
   (3) The size of the deductions related to the extraction of the natural resources shall be determined by
       multiplying the value basis of the natural resources with the result obtained from the division of
       the volume of extraction during the fiscal year to the foreseen total amount of extractions for the
       given natural resource.
   (4) The deduction of future expenses for the re-cultivation of lands shall be permitted within the
       limits of the calculated size, which shall be determined in relation to the necessary expenses for
       the re-cultivation at the balance of the industrial reserves of the useful substances from the
       respective resource, multiplied to the volume of useful substances extracted in the administration
       period.
   (5) The deduction of the future expenses regarding the recuperation of the losses of the agricultural
       production in case of granting of lands via a Government decision shall be allowed in the limits of
       the calculated size, which shall be determined in relation to the cost of the losses of the industrial
       reserves from the respective land, multiplied to the volume of the useful substances extracted in
       the administration period.


Article 30. Restrictions regarding the deduction of taxes and fees

(1) The deduction of the income tax, established by the present code, of penalties and fines related to it,
    as well as of fines and penalties related to other taxes and fees and mandatory payments to the
    budget, of fines and penalties applied for the breach of legal acts, is not permitted.
(2) The deduction of the taxes paid in the name of another person shall also not be permitted.


Article 31. Limitation of other deduction

   (1) Deduction of any compromised debt shall be allowed according to the legislation, if this debt has
       not been formed while developing the entrepreneurial activity.
   (2) The deduction in the reserve funds, except for the deductions of reductions for losses at credits
       (risk fund), performed according to line (3), shall not be allowed.
   (3) The financial institutions shall be permitted to deducts the reductions for the losses at credits (risk
       fund), whose volume shall be determined according to the Regulation regarding the classification
       of the credits and the formation of the reductions for the losses at credits (risk fund), approved by
       the National Bank of Moldova. When calculating the size of the reduction for the losses at credits,
       the preferential credits whose losses are compensated from the account of diminution of the
       income tax related to the payments to the state budget or from the means of the state budget, shall
       not be taken into account. If the volume of reductions for losses at credits (risk fund), calculated
       at the end of the fiscal year (administration period), is smaller than the real size, reflected in the
       balance of the financial institution at the same date, the difference shall be included in the taxable
       annual income (for the administration period), with the decrease of the reductions into this fund,
       performed from their own means in the previous period.
   (4) The banks which are allowed and obliged by the National Bank of Moldova to participate at the
       formation of the guarantee fund of the deposits in the banking system are permitted to perform
       deductions of the obligatory annual payment, initial contributions, quarterly contributions and
       special contributions of the banks into the mentioned fund, set by the Law nr. 575-XV from 26
       December 2003 regarding the guarantee of the deposits of the natural persons in the banking
       systems.


Article 32. Reporting of losses in the future

   (1) If, during the fiscal year, the expenses related to the entrepreneurial activity overpass the gross
       income of the taxpayer in the current years, the amount of losses resulted from this activity will
       be reported in rounds, in equal parts, for the next three years.
   (2) The sum reported for one of the next fiscal years following to the one in which the losses equal to
       the total amount of losses has been registered, the reduced total sum permitted for deduction in
       each of the following two years.
   (3) If the taxpayer has suffered losses in the course of more than one year, the provisions of the
       present article shall apply towards these losses in the order in which they have appeared.


   Chapter 4
   Exemptions and other deductions

    Article 33. Personal exemptions

   (1) Each taxpayer (natural resident person) is entitled to a personal exemption that amounts to 7200
       lei per years.
   (2) The amount of the personal exemption, set at line (1), will constitute 12000 lei per year for each
       person that:
   a) has been ill and suffered an illness provoked by the consequences of the accident from C.A.E.
      Chernobyl;
   b) is disabled and it has been established that his disability had been caused by the Chernobyl
      accident;
   c) in the parent or husband (wife) of a participant that died or has been declared disappeared in the
      actions for fight for the defense of the territorial integrity and independence of the Republic of
      Moldova, as well as in the fight actions from Afghanistan Republic.
   d) Is disabled as result of participation at the actions for fight for the defense of the territorial
      integrity and independence of the Republic of Moldova, as well as in the fight actions from
      Afghanistan Republic;
   e) Is disabled as result of a war, disabled since childhood, or disabled of I and II degree;
   f) Is retired – victim of the political repressions, ulterior rehabilitated.
Article 34. Exemptions granted to husband (wife)

1) Resident natural person that is bounded by marriage ties is entitled to a supplementary exemption
amounting to 7200 lei annually, given the fact that the husband (wife) does not benefit of a personal
exemption.
(2) The resident physical person married to any person specified in the art. 33 paragraph (2) has the
right for an additional reduction in the amount of 12000 lei, provided that wife (husband) does not
benefit from a personal reduction.


Article 35. Exemptions for sustained persons

(1) The taxpayer (resident natural person) is entitled to an exemption up to 1680 lei annually for each
    sustained person, except for the disabled since childhood for which the personal exemption
    constitutes 7200 lei annually.
(2) In the sense of the present title, the sustained person is the person that meets all the below listed
    requests:
a) is an ancestor or descendant of the taxpayer or of the wife (husband) of the taxpayer (parents or
    children, including the adopted children and parents that adopted)
b) lives together with the taxpayer or does not live with the latter, but performs his full-time studies
   at an education institution for more than 5 months during the fiscal year;
c) is sustained by the taxpayer;
d) has an income not larger than 7200 lei annually.


Article 36. Other deductions

(1) The resident taxpayer is entitled to the deduction of any donations made by him during the fiscal
    year in philanthropic or sponsorship aims, but not more than 10% from the taxable income. In this
      aim, the taxable income of the taxpayer shall be determined without taking into account the
      exemptions that are granted to him according to the present article.
(2)   According to the present article can be deducted only the donations and sponsorships in favor of
      the public authorities and public institutions stated at art. 51, of non-commercial organizations
      specified at art. 52 line (1) letter a) and b) and art.53³, as well as in favor of the religious
      organizations stated at art. 52 line (1) letter c).
(3)   The donations in philanthropic or sponsorship aims shall be deduction only in case of their
      confirmation in the way provided by the law.
(4)   The deduction of the expenses related to investments shall be allowed if they are with regard to:
a)    ordinary and necessary expenses, paid during the fiscal year with the aim of obtaining an income
      from investments;
b) interests on debt, given that the interest does not surpass the sum of the income from investments,
    meaning that the amount of the interest or rent, or royalty, or the increase in capital as result of
    sale of property (obtained from activities, other than the entrepreneurial activity).
(5) the deduction of the mandatory reductions into the Republican Fund and local funds of social
    support of the population shall be allowed in these are performed during the fiscal year in the
    amounts set out in the legislation.
(6) The deduction, in the amounts established by the legislation, of the sums for the mandatory
    medical assistance fees calculated by employer, as well as of the sums of the obligatory insurance
    fees paid by the insured physical persons according to the legislation is allowed.
(7) The deduction of the mandatory contributions into the budget of the state social insurance paid
    by natural persons during the fiscal year, in the amounts set by the legislation, shall be permitted.



Chapter 5
Capital increases and losses

Article 37. Recognition and determination of the capital increases and losses

(1) The amount of increases and losses of capital, which comes from selling, exchange or other form
      of transaction of the capital actives, shall be recognized in its entire volume, except for the cases
      in which the present title provides for otherwise.
(2)   Capital actives are:
a)    shares and other types of property in the entrepreneurial activity;
b)    claim titles;
c)    private property which is not used in the entrepreneurial activity, that is sold at a price that
      surpasses its adjusted value basis;
d)    lands;
e) option – when purchasing or selling the capital actives.

(3) The right to obtain incomes from the capital actives during a period larger than 10 years shall be
    considered as capital actives, if treated separately.
(4) The amount received as result of the selling, exchange or other type of transaction of the capital
    actives shall be equal to the sum of the monetary means and the value evaluated at the market
    price of the capital actives obtained as non-monetary form.
(5) The size of the capital increase that comes from the selling, exchange or other type of transaction
    of the capital actives shall be equal to the redundancy of the amount received in relation to the
    value basis of these actives.
(6) The size of capital losses handled as result of selling, exchange or other type of transaction of the
    capital actives shall be equal to the redundancy of the value basis of these actives in relation to
    the obtained income.
   (7) The sum of increase in capital in the fiscal year is equal to 50% from the redundancy sum of the
         increase in capital recognized over the level of any capital losses handled during the fiscal year.


Article 38. Notions regarding to the capital actives

   (1) The value basis of the of the capital actives means:
   a)  the value of the capital actives purchased or created by the taxpayer;
   b)  the value basis adjusted of the capital actives:
   -   for the person that transmits the capital actives to the taxpayer; or
   -   for the capital actives replaced with new actives.
   (2) The value basis adjusted of the capital actives is increased (or reduced) accordingly, with the size
       of the compensation granted (or received) by the taxpayer.
   (3) The value basis of all capital actives that are not due to attrition, that are in the possession of the
       taxpayer at the date of 1st January 1998, shall not be smaller than their value at that date or the
       market price of the identical objects. Upon the wish of the taxpayer, this value can be determined
       as value basis adjusted of the capital actives, multiplied to the corresponding coefficient to their
       purchase years, approved by the Government.
   (4) The adjusted value basis of the capital actives represents the value basis of the capital actives:
   a) reduced with the size of the attrition, exhaustion or other modifications of the value of the capital
       actives that is annulled from the account of the fix means;
   b) Increased with the reconditioned value and other modifications of the value of the capital actives,
       that is accumulated on the account of the fix means.
   (5) Reductions and increases of the value basis of the capital actives that took place before the 1st of
       January 1998 shall be performed according to the legal acts in force before that date.
   (6) The value base of the capital assets is adjusted with the positive differences resulted from the
       reevaluation performed in accordance with the chapter IV of the Law no.1164-XIII from April
       24th, 1997 for implementation of the titles I and II of the Tax Code.


   Article 39. restrictions regarding the deduction of the capital losses
   (1) The taxpayer (natural or legal person) shall be allowed the deductions of the capital losses only
       within the limits of the capital increases.
   (2) The capital losses whose deductions is not allowed, according to line (1), in the respective fiscal
       year are considered as capital losses handled the next year.
   (3) The restrictions regarding the deduction of the capital losses provided at line (1) shall not apply to
       the natural person for the fiscal year in which he died.


Article 40. Redistribution (transmission) of property between spouses

   (1) the increases or losses of capital shall not be recognized in the case of redistribution
       (transmission) of property:
a) between spouses; or
b) between ex-spouses, if such a redistribution (transmission) results from the need of sharing the
    common property in case of divorce.
(2) the value basis of the property stated at line (1), for the beneficiary, represents the value basis of
    the property of the person that transmits it.


Article 41. Facilities at selling of the main dwelling

(1) When selling, exchanging or other types of transaction with the main dwelling of the taxpayer,
    the increase of capital shall be recognized with the exceptions provided by line (3).
(2) In the sense of the present title, a min dwelling of the taxpayer shall be considered the one that
    has been in his property during 3 years, period that expires at the moment of its alienation, and
    which served all along this period as main residence.
(3) The size of capital increase, due to taxation, for any dwelling shall be decreased by 10 000 lei for
    each of the year that follow after 1997, during which the taxpayer was the owner of this property
    and used it as main residence. This provision shall no be applied in case of the principal dwelling
    place, the value base of which is the value estimated in the set manner.
(4) The deduction of losses as result of the selling or exchange of the estate that served as main
    residence shall not be permitted.


Article 42. Donations

(1) A person that makes a donation shall be considered that she sold the donated good at a price that
    represents the maximum size from its adjusted value basis or its market place at the moment of
    donation. The calculation of the adjusted value basis of the estate at the moment of donation shall
    be performed taking into account the provisions of art. 26 and according to art 38 lines (1) and
    (2), separately per each donated object.
(2) The value basis of the donated property shall be considered, for the addressee, the amount
    determined in accordance with line (1).
(3) The person that performs a donation as monetary means shall be considered as a person that
    obtained income in the size of the sum of the donated monetary means.


Article 43. Transmission of property as result of death

(1) At the moment of death of the taxpayer, all his property is transmitted through inheritance and
    shall be considered as being sold at its marked price (except for that, whose income is exempted
    from taxes).
(2) The value basis of the property stated at line (1) is equal to its market value.
(3) The value basis of the property, where the income resulting thereof is exempted from taxes, is
    equal to the adjusted value basis of the property of the deceased person.
   (4) The property, where the income resulting thereof is exempted from taxes includes:
   a) the main dwelling left after the death of the taxpayer;
   b) the material private estate of the deceased person, that was neither property used in
       entrepreneurial activity, nor property resulted from investment activity, except for the case
       provided at letter c)
   c) material private property of the deceased member of the farmers household, in case of its
       inheritance by a member of the household or a person that becomes member of this household;
   d) annuities and other income resulted from the estate, as periodic payments, which are taxable for
       the heirs;
   (5) In the control package (50% or more from the participation shares) of the economic agent subject
       of the sector of small and medium sized enterprises is transferred after the death of the owner to
       the possession of the heirs, these may, instead of recognizing the increase or losses of capital
       according to line (1), determine the value basis of their shares in this control package, starting
       from the adjusted value basis of the control package that belonged to the deceased.
   (6) If at the moment of the death, the taxpayer possesses the control packages of more economic
       agents subjects of the sector of small and medium sized enterprises, the provisions of line (5)
       shall apply only towards one of the agents, upon the choice of the heirs of first degree.



Chapter 6
Evidence rules

Article 44. Methods of evidence and their application

   (1) Except for the cases when something different is provided for, the following evidence rules shall
       apply:
   a) for the natural persons – cashier or calculation methods;
   b) for legal entities – calculation methods;
   c) for the state enterprises in 1998 and 1999 – one of the evidence methods applied in 1997, upon
       choice
   (2) A cashier method if the method according to which:
   a) the income is reported to the fiscal year in which it was received in cash (or its equivalent) or in
       any form of material property;
   b) deduction shall be allowed in the fiscal year during which the expenses have been bourn, except
       for the cases when these expenses shall be reported to another fiscal year, aiming at the correct
       reflection of the income.
   (3) A calculation method is the method according o which:
   a) the income is reported to the fiscal year in which it was obtained;
b) the deduction shall be allowed in the fiscal year in which were calculated or bourn the expenses
      or other payments have been performed, given that these expenses and payments shall not be
      reported to another fiscal year in order to correctly reflect the income.
(4)   The taxpayer that uses the calculation method may perform the deduction of the expenses or other
      payments only when:
a)    there are circumstances that determine the fiscal obligation of the taxpayer;
b)    the entrepreneurial activity within which the expenses were bourn was developed;
c)    the amount of the fiscal obligations of the taxpayer can be determined.
(5)   the taxpayer that uses the method of calculation is not entitled to perform any kind of deductions
      until the moment of performance of payments if he has any obligations towards an interdependent
      person that uses the cashier method;
(6)   with the aim of correct reflection of the income resulted from the entrepreneurial activity, the
      State Fiscal Service is entitled to request the person that does a large business to use the
      calculation method.
(7)   In fiscal aims the methods of financial evidence that do not contravene to the provisions of the
      present article can also be used.
(8)   In case when the taxpayer changes his evidence method, the corresponding changes in the articles
      that reflect the income, the deductions and the transfers into the account and other operations
      shall be performed in such a manner that no article is not overlooked or repeated. If the change of
      the evidence method leads to the increase of the taxable income of the taxpayer in the first fiscal
      year of application of the new method, then the size of the exceeding that results exclusively from
      the change of the evidence method shall be distributed into equal shares for the current fiscal year
      and for each of the following two years.


Article 45. The method of the fulfilled percentage

(1) The evidence of the income, deductions, transfers into the account and other operations relating to
    long-term contracts (agreements) shall be performed according to the method of fulfilled
    percentage
(2) In the sense of the present title, a long term contract is any contract that relates to production,
    construction, installation or assembling concluded for at least 24 months.
(3) The evidence of all incomes and expenses shall be performed in the way set out by the
    Government, in the fiscal year comprised in the term of action of the long-term contract, based on
    the determination of the percentage of fulfillment of the works provided by the contract during
    the respective year. The declarations regarding the income tax for the respective year, except for
    the year in which the contract expires, shall be performed by the method of fulfilled percentage.
(4) After the conclusion of execution of the contract, with the aim of determination of the correctness
    of calculation of the payments as interests (penalties), the repartition of the tax for the fiscal years
    according to the method of fulfilled percentage, shall be calculated on the basis of real indicators.
    Payments such as interest, for any incomplete payment or overpayment of the tax in any year,
   discovered as result of such a recalculation, shall be determined in accordance with the provisions
   of the present code and shall be paid at the term provided for the presentation of the declaration of
   the income for the year in which the execution of the contract ends. This provision shall apply to
   all long-term contracts upon the presentation of the fiscal declaration for the year in which the
   execution of the contract ends and in no case at a prior date.


Article 46. The evidence regime of the stocks of goods and materials

(1) Any person that possesses goods’ stocks and materials aimed for their own production process or
stocks of final production is obliged to keep their evidence, if this is necessary for the correct
reflection of the income.
(2) the farmers households shall not keep their evidence goods’ stocks and materials in the process of
agricultural production, except for the cases of their processing aiming at obtaining income.
(3) the evidence methods of the reserves of goods and materials shall apply by the contributor in
accordance with the law on accountancy.


Article 47. Evidence of the income resulted from common property
The income resulted from common property shall be considered as income obtained by the co-
owners, proportionally to their shares that belong to each of them.


Article 48. Evidence of the recuperated deductions

In case the expanses, losses and compromised debt, previously deducted are being returned to the
taxpayer during the year, the restituted sum shall be taken into account and shall be included into the
gross income of the taxpayer for the year in which this was received.

Chapter 7
Taxation of some categories of taxpayers

Article 49. Economic agents subjects of small and medium sized enterprises, farmers’ households,
agricultural cooperatives of render of services, residents of free economic zones, residents of the
scientific-technological parks and residents of innovation incubators

       (1) The following economic agents are entitled to full exemption from the payment of the
           income tax for three fiscal periods:
       a) the economic agents whose average annual number of employees is not larger than 19
           persons and the annual sum of incomes from sales, including from render of services, is
           not larger than 3.000.000 lei, regardless of their legal organizational form and the type of
           activity;
b) the farmers enterprises created in accordance with the Law nr. 1353-XIV from 3
      November 2000 regarding the farmers enterprises;
c)    agricultural cooperatives of render of services that correspond to requests of art 87 of the
      Law nr. 73-XV from 12 April 2001 regarding the entrepreneurial cooperatives, given that
      the delivery (render) of at least 75% from the total amount of their own production
      (services) towards its members and/or purchase (benefiting) from its members of at least
      75% from the total volume of the purchased production (services) rendered by the
      cooperative.
d)    residents of scientific-technological parks;
e)    residents of innovation incubators.
(2)   The exemption from the payment of the income tax, provided at line (1) shall not apply to:
a)    economic agents that possess a dominant market position;
b)    economic agents in whose equity capital the share of the shareholders (founders) that are
      not small business agents is higher than 35%;
c)    economic agents producers and importers of goods due to excise stamps;
d)    fiduciary and insurance companies;
e)    investment funds;
f)    banks and other financial institutions;
g)    economic agents that perform currency exchange operations and lombard;
h) economic agents that activate in the field of gambling;
i) economic agents that are agricultural producers specified at art. 24 line (22) from the Law
    nr. 1164-XIII as of 24 April 1997 for the application of titles I and II of the fiscal Code.
(3) the right to exemption from the payment of the income tax, provided at line (1) pears on
    the basis of the request regarding the exemption from the payment of the income tax,
    submitted by the economic agent to the territorial body of the Fiscal State Service. The
    exemption period starts with the following fiscal period to the one during which the
    request regarding the tax exemption was submitted or from the beginning of the fiscal
    period in which the request was submitted, given that the request is submitted not later
    than 31 March of the respective fiscal period. The term of granting of the exemption from
    the payment of the income tax does not depend on the fact is there was taxable income
    obtained or losses have been bourn in the period for which the exemption was received.
(4) The newly established economic agents, mentioned at line (1), are entitled to the
    exemption from the income tax also in the first fiscal period that begins from the moment
    of their registration in accordance with art. 12/1 line (2) given that the request regarding
    the exemption from the income tax is submitted until the 31 December of the first fiscal
    period. The exemption remains valid if, according to the totals of the first fiscal period in
    which the exemption is granted, the newly established economic agent corresponds to the
    criteria stated at line (1). In case when the newly established economic agent has obtained
    the exemption from the payment of the income tax for the first fiscal period, and
    according to the totals of the first fiscal period, does not correspond to criteria stated at
      line (1), the right to exemption shall automatically loose its legal force, and the economic
      agent is obliged to pay the income tax within the terms and in the way set out by art. 87.
(5)   The territorial body of the Fiscal State Service is obliged to immediately register the
      request regarding the exemption from the payment of the income tax and to issue to the
      economic agent the second copy of the request in which he indicated the registration
      number and applies the stamp of the territorial body. In case when the territorial body
      refuses to register the request the economic agent shall send it via a recommended letter.
      The date of sending of the letter serves as date of its submission.
(6)   The economic agent shall be deprived from the exemption of the income tax if:
a)    at the moment of submission of the request regarding the payment of the income tax, is
      not in line with the conditions of line (1) and/or is part of one or more categories of the
      economic agents set out ay line (2) letters a)-h)
b)    in the period of action of the exemption from the payment of income tax, is part of one or
      more categories of the economic agents set out ay line (2) letters a)-h);
c)    in the period of action of the exemption from the payment of income tax, including at the
      beginning of that period, according to the totals of the fiscal period, has arrears to the
      payment of taxes and fees towards the public national budget;
d)    does not present, within the set terms, the fiscal reports for the previous fiscal period;
e)    in the period of action of the exemption from the payment of income tax, has committed a
    n offense from those provided by art. 216, 217, 223-246, 248-251 and 257 of the Criminal
    Code of the Republic of Moldova;
f) according to the totals of the fiscal period, does not correspond to the criteria set out by
    letters a) – e) of the present line and of those provided by line (1) letter c) – for the
    agricultural cooperative of render of services;
The deprivation from the right of exemption of the payment of the income tax in cases
provided at letters a)-f) shall be performed on the basis of a grounded decision, issued by the
territorial body of the Fiscal state Service.
The list of the grounds for the deprivation from the right of exemption of the payment of the
income tax is an exhaustive one, and can not bee completed or interpreted in an extinctive
manner.
(7) The cease of correspondence of the economic agent with the requests set out at line (1)
    letter a) and b) can not serve as ground for the deprivation of the latter from the payment
    of the income tax, except for the cases provided at lines (2) and (4).
(8) The economic agent is deprived from the right of exemption from payment of the income
    tax in the cases provided at:
a) line (6) letter a) – the exemption shall be considered void from the moment of obtaining
    the exemption from the payment of the income tax;
b) line (6) letter b) – for the fiscal period in which the respective circumstances were
    discovered;
c) line (6) letter c) – for the fiscal period in which the breach was found, in the delay in
      payment of the arrear is larger than 20 working days and if the decision regarding the
      application of fiscal sanctions and/or the receipt of the tax and fee additionally calculated,
      given that the pronounced decision was executed voluntarily, within 30 days (in
      accordance with art. 252);
d)    line (6) letter d) – for the fiscal period in which the breach was found, if this does not
      present the fiscal reports for the previous fiscal period during 20 working days from the
      moment of expiry of the term set by the fiscal legislation for the presentation of the fiscal
      reports;
e)    line (6) letter e) – for the fiscal period regarding which the verdict pronounced by the
      court remained final;
f)    line (6) letter f) – for the fiscal period in which the respective circumstances were
      discovered.
(9)   The economic agent that was deprived from the exemption of the payment of the income
      tax is obliged to:
a)    in cases provided by line (6) letter a) – to execute the obligations regarding the payment of
      the income taxes in the general manner provided by the fiscal legislation. The economic
      agent can not benefit repeatedly from the exemption from payment of income tax;
b)    in cases provided at line (6) letter b) – to execute the obligations related to the payment of
   the income tax in the general provided by the fiscal legislation, starting with the fiscal
   period during which it is included in one of more categories of economic agents set out by
   line (2) letters a)-h);
c) in cases provided by line (6), letter e) – to execute the obligations regarding the income
   tax starting with the fiscal period in which an offence from those stated at line (6) letter e)
   was committed, without a sanction having been applied, fact that shall be mentioned in the
   decision of the territorial body of the State Fiscal Service, according to the final ruling of
   the court.
(10)        Immediately after the expiry of the term of the exemption from the payment of the
    income tax for three fiscal periods, the economic agents provided at line (1) are entitled,
    within two fiscal period to a reduction of 35% of the shares of the income tax provided at
    art. 15. The deprivation of the economic agents to the right of reduction of the shares of
    the income tax is regulated, exhaustively, at line (6) letter b)-f), line (7), line (8) letter b)-
    f) ad line (9) letter b)-d).
(11)        The model of the request regarding the exemption from the payment of the income
    tax shall be worked out by the Principle Fiscal State Inspectorate by the Ministry of
    Finances, together with the Ministry of Economy and is approved by the Government..
(12)        The economic agents mentioned at line (1) benefit from the reduction from the
    payment of the income tax, as well as an ulterior reduction of 35% of the share of the tax,
    only once.
           (13)        The taxation of the residents of the free economic zones has the following
                peculiarities:
           a)   the income tax of the residents, obtained at the export of goods (services) originating from
                the free economic zone from outside the customs territory of the Republic of Moldova
                shall be lifted in proportion of 50% from the share set for Moldova;
           b)   The income tax from the activity of the residents in the free economic zone, except for the
                one set out by letter a), shall be lifted in proportion of 75% from the share set for
                Moldova;
           c)   The residents who have invested into the fix funds of the enterprises and/or the
                development of the infrastructure of the free economic zone with a capital equivalent to at
                least one million US dollars shall be exempted from the payment of the income tax from
                the export of goods (services) originating from the free economic zone outside the
                customs territory of the Republic of Moldova for a period of 3 years, starting with the
                trimester immediately following to the trimester on which the stated volume of
                investments has been attained.
           d)   The residents who have invested into the fix funds of the enterprises and/or the
                development of the infrastructure of the free economic zone with a capital equivalent to at
                least five millions US dollars shall be exempted from the payment of the income tax from
                the export of goods (services) originating from the free economic zone outside the
                customs territory of the Republic of Moldova for a period of 5 years, starting with the
                trimester immediately following to the trimester on which the stated volume of
                investments has been attained.


Article 49/1 Organizations from the field of science and innovation

The organizations from the field of science and innovation, accredited by the National Council for
Accreditation and Attestation, shall be entirely exempted from the payment of the income tax, given that
the amount of the income tax, calculated and not-poured into the budget is used for financing projects
from the field of science and innovation, that are in line with art. 60 of the code regarding science and
innovation of the Republic of Moldova. The exemption can be granted starting with the fiscal period in
which the organization from the field of science and innovation has been accredited by the National
Council for Accreditation and Attestation. In case of taking back of the accreditation certificate, the
organization from the field of science and innovation will be deprived from the right of exemption
starting with the fiscal period in which the accreditation certificate has been taken back.


Article 49/2 Fiscal facilities for investments

(1) Enterprises, the equity capital of which is formed or increased in the manner provided by the
legislation or which make capital investments (expenditures) in the amount exceeding the sum equaling
250 thousand US Dollars, shall be exempted from the income tax in the proportion of 50%, during 5
fiscal periods, starting with the fiscal period in which the agreement of tax exemption has been concluded
with the fiscal body, in accordance with the regulation approved by the Government, provided that at
least 80% of the income tax sum calculated and non-transferred to the budget are reinvested in the own
production development (works, services) or in the state or branch programs of national economy
development.

(2) Enterprises, the equity capital of which is formed or increased in the manner stipulated by the
legislation or which make capital investments (expenditures), are exempted from the income tax for the
fiscal periods which follow, starting with the fiscal period in which the agreement of tax exemption has
been concluded with the fiscal body, in accordance with the regulation approved by the Government and
depending on the amount of formed or increased equity capital or on the amount of performed capital
investment (expenditures), as follows:

a) for 3 years - if the amount of the equity capital, formed or increased in the manner stipulated by the
legislation or of the capital investments (expenditures) exceeds the amount equaling
2 million U.S. Dollars, provided that at least 80% of the income tax, calculated and non-transferred to the
budget, is reinvested in the development of own production (works, services) or in state or branch
programs of national economy development;

b) for 3 years - if the amount of the equity capital, formed or increased in the manner stipulated by the
legislation or of the capital investments (expenditures) exceeds the amount equaling 5 million U.S.
Dollars, provided that at least 50% of the income tax, calculated and non-transferred to the budget, is
reinvested in the development of own production (works, services) or in state or branch programs of
national economy development;

c) for 3 years - if the amount of the equity capital, formed or increased in the manner stipulated by the
legislation or of the capital investments (expenditures) exceeds the amount equaling 10 million U.S.
Dollars, provided that at least 25% of the income tax, calculated and non-transferred to the budget, is
reinvested in the development of own production (works, services) or in state or branch programs of
national economy development;

d) for 4 years - if the amount of the equity capital, formed or increased in the manner stipulated by the
legislation or of the capital investments (expenditures) exceeds the amount equaling 20 million U.S.
Dollars, provided that at least 10% of the income tax, calculated and non-transferred to the budget, is
reinvested in the development of own production (works, services) or in state or branch programs of
national economy development;

e) for 4 years - if the amount of the equity capital, formed or increased in the manner stipulated by the
legislation or of the capital investments (expenditures) exceeds the amount equaling 50 million U.S.
Dollars.
(3) The fiscal facilities stipulated in the paragraph (1) and (2) are granted provided that all the following
conditions are complied:

a) these enterprises comply with the conditions stipulated in the art.8 paragraph (1) letter d);
b) these enterprises did not benefit and/or do not benefit from similar fiscal facilities foreseen in case of
forming or increasing the equity capital.

(4) The deadline for reinvesting in the development of own production (works, services) or in state or
branch programs of national economy development in the established rates from the income tax,
calculated and non-transferred to the budget, according to the paragraph (1) and paragraph (2) letter a)-
d), is established in the fiscal period following the fiscal period in which the term of benefiting from the
fiscal facility stipulated in the paragraph (1) and (2) letter a)-d) has expired.

 (5) The fiscal facilities stipulated in the paragraph (1) and (2) shall not be granted to the enterprises, the
equity capital of which, constituted or increased, or the long-term material assets of which were part of
the social capital or of the capital investments (expenditures) of the enterprises invested with the right to
benefit from the fiscal facilities stipulated in the paragraph (1) and (2).

(6) Immediately after expiry of the term of income tax exemption, enterprises which complied with the
conditions stipulated in the paragraph (2) shall have the right to benefit from income tax exemption for
another 3 fiscal periods of income tax exemption, provided that the in the fiscal period for which this
fiscal facility is requested, the equity capital, increased in the manner stipulated by the legislation, or the
performed capital investments (expenditures) exceed an equivalent sum of 10 million U.S. Dollars.

 (7) Enterprises, including those that benefited from the income tax exemption for forming or increasing
the social capital, in the manner stipulated by the legislation, in the amount exceeding 2 million US
Dollars, in the previous edition of the law, have the right to benefit from the fiscal facility stipulated in
the paragraph (2) and (6), provided that all the exemption period, including the one previously granted,
shall not exceed 7 fiscal periods.

(8) The enterprises to which the income tax exemptions have been granted, in accordance with the
provisions of the present article, in the previous redaction, can further benefit from the respective
exemption in case of complying with the set conditions at the moment of granting.

Article 50. Insurance/reinsurance activity

   (1) The provisions of the present article shall apply to the taxpayers working in the field of
       insurance/reinsurance.
   (2) The deduction of the insurance sums and compensations, as well as of other payments made by
       the insurer/reinsurer in favor of insurant/third person or insurance and/or reinsurance beneficiary
       in accordance with the concluded insurance and/or reinsurance contract is allowed.
   (3) The deduction of the expenditures related to the formation of technical and mathematical
       reserves, in the manner provided by the Government, is allowed.


Article 51. Public authorities and public institutions exempted from taxes

The public authorities and the public institutions financed fro the national public budget shall be
exempted from paying the taxes.


Article 51¹ Private and public medical-sanitary institutions
Private and public medical-sanitary institutions are exempted from the income tax obtained from the
activity of the institutions rendering medical services related to implementation of the Unique Program of
mandatory medical insurance (according to the contracts concluded with the National Medical Insurance
Company).
Article 52. The non-commercial organizations exempted from tax

   (1) The non-commercial organizations that are exempted from payment of taxes are:
   a) institutions that activate in the field of health protection, education, science and culture;
   b) the associations of blinds, deaf and disabled, associations of veterans and other public
       associations, foundations, philanthropic organizations that deal exclusively with:
   - granting material help and services free of charge to disabled, ill persons, lonely, orphans or
       children that have no parental care, families with many children, unemployed, persons that have
       suffered as result of wars, natural, ecological disasters an epidemics;
   - activity related to the defense of human rights, education, gaining and promotion of knowledge,
       health protection, granting of social help to population, culture, arts, amateur sports, liquidation of
       consequences of natural calamities, environment protection and other socially useful fields, I
       accordance with the legislation regarding the public associations ad regarding the foundations;
   c) religious organizations, employers’, entrepreneurs and farmers’ associations, and other
       organizations aiming at creating favorable conditions for the realization and defense of the
       production, technical-scientific, social interests, and other common interests of the economic
       agents.
   d) Bar and lawyers associations, unions and associations of notaries and notary chambers;
   e) Parties and other socio-political organizations.
   (2) the non-commercial organizations specified at line (1) shall be exempted from tax payment if
       they are in line with the following conditions:
   a) are registered or created in accordance with the legislation and in their statute, regulation or other
       document are listed the concrete activities developed by that non-commercial organization and its
       status of non-commercial organization ad well as the prohibition regarding the distribution of
      income or property among the members of the organization, among the founders or among
      private persons, including in the process of its reorganization of liquidation of the non-
      commercial organization;
b)    the entire income for the activity provided by the statute, by the regulation or other document
      shall be used for the aims provided by the statute, regulation or other document;
c)    do not use a part of their property or income on the interests of one of the member of the
      organization, one of the founders or other private person;
d)    do not support a political party, election block or candidate to a position within the public
      authorities election and do not use a share of their income or property for their financing.
(3)   The restrictions provided at line (2) letter d) shall not extend over the organizations mentioned at
      line (1) letter e).
(4)   The organizations mentioned at line (1) letters a), c), d) and e) are recognized as non-commercial
      and shall be exempted from the payment of the tax, if they respect the provisions of the present
      article, upon the decision of the fiscal territorial bodies. The decision shall be issued on the basis
      of the request of the authorized persons of the respective organizations. To the request one shall
      annex the statute, the regulation or another document that includes disposals regarding the
      obligations to fulfill the requests of the present article, as well as the state registration certificate if
      this is provided by the legislation. The authorized persons of the respective organizations, except
      for those newly established, also present, the declaration provided at art. 83 line (2), for the
      previous periods, but not more than for the last 2 fiscal years. As ground for refusal to recognize
      the organization as non-commercial and to exempt for the tax payment serves the non-inclusion
      into the statute, regulation or other document of the disposals regarding the obligations related to
      the fulfillment of the provisions of the present article or the existence of the fiscal obligations.
      The decision regarding the recognition of the organization as non-commercial and regarding the
      exemption of the latter from the payment of the tax shall be adopted within 30 days from the
      moment of presentation of the documents provided at the present line. The copy of the decision
      shall be handed in to the solicitant within 3 days.
(5) The organizations specified at line (1), letter b) can be exempted temporarily from tax payment,
    in the way provided at line (4), according to the decision of the territorial fiscal bodies, until the
    obtainment of the state certificate according to the legislation regarding the public associations
    and regarding foundations. The term for which the fiscal body decision is adopted regarding the
    provisory exemption from paying the income tax cannot exceed a year from registration of the
    specified organizations in he paragraph (1) letter b). In case of refusal to grant the state certificate,
    the mentioned organizations, for the period of temporary exemption, shall pay the tax in the
    generally established way. After the obtainment of the state certificate, as ground for tax payment
    exemption serve the presence of the respective certificate ad the decision of the Certification
    Commission, which shall be presented to the State Fiscal Inspectorate by the Ministry of Finances
    the list of non-commercial organizations regarding which the decision of tax payment exemption
    was issued.
Article 53. Auxiliary affairs

(1) Auxiliary affair shall be considered any entrepreneurial activity of the non-commercial
    organizations that does not imply tax exemption according to art. 52.
(2) Auxiliary affairs of the organizations mentioned at art. 52 line (1) shall be considered as separate
    taxation object, whose income shall be taxed at the quota provided at art. 15 letter b).
(3) The taxable income from auxiliary affairs represents the gross income obtained by the
    organization from the auxiliary affairs developed by the latter in a regular way, reduced with the
    size of deductions allows according to chapter 3 that regards directly the respective affairs.


Article 53/1 Enterprises created by the associations of the blinds, deaf and disabled persons

Enterprises created for the realization of statutory aims of the associations of blinds, deaf and
disabled shall be exempted from the tax payment.


Article 53/2 The savings and loans associations

The savings and loans associations shall be exempted from tax payment.


Article 53/3 Trade union organizations
The trade union organizations are exempted from income tax.


Article 54 Organizations of foreign states, international organizations and their staff.

(1) The income of diplomatic missions and other equated to them missions in the Republic of
    Moldova, of the members of the diplomatic and consular staff, of the administrative and technical
    staff and of the their attendant staff, as well as of the members of their families (if they are not
    citizens of the Republic of Moldova or if they do not have permanent residence in the Republic of
    Moldova), is exempted from tax payment.
(2) Any exemption granted in accordance with the present article is conditioned by the granting of
    reciprocal rights by the respective states
(3) In accordance with the international treaties as regards the technical and humanitarian assistance
    to which Republic of Moldova is party, the income of the organizations of foreign states, of
    international organizations as well as the income obtained by the foreign staff that activate within
    the framework of the mentioned international treaties shall not be taxed. The income of resident
    employed that work within the framework of the mentioned international treaties shall be taxed in
    the generally established way, if the international treaty does not provide otherwise. The list of
    international treaties regarding the technical assistance, to which Republic of Moldova is party
    and the projects of technical assistance are approved by the Government.
   Chapter 8
   Fiscal Regime in case of organization, liquidation and reorganization of the economic agents

   Article 55. Contributions to capital

   (1) Contributions with assets to the capital of the economic agent in exchange of the participation
   quota in his capital are not subject to taxation.
   (2) For the person who contributed with assets, the value basis of ownership right (shares,
   participation certificate, another documents confirming participation in capital of the economic agent)
   is equal to the adjusted value basis of the assets transmitted as contribution.


Article 56. Payments performed by the economic agents

   (1) If the economic agent performed payments in goods to the shareholders (associates) according to
       their participation share (dividends, payments in case of liquidation, under another form), then the
       increase or decrease of capital shall be considered as property that has been sold to the
       shareholder (associate) by the economic agent at its market price.
   (2) The dividends having the from of shares that do not modify in any way the participation shares of
       the shareholders in the capital of the economic agent shall not be considered as dividends and
       shall not be taxed as according to art. 80 and 80¹.
   (3) In all cases in which line (2) applies, the value basis of the initial shares of the taxpayer shall be
       distributed between the initial shares and the newly obtained shares proportionally to their value.


Article 57. Liquidation of the economic agent

   (1) In case of liquidation of a part of the economic agent, the liquidated part shall be considered as
       income, regardless of the fact if the shares have or have not been sold.
   (2) In case of complete liquidation of the economic agent:
   a) the economic agent shall treat the increase or decrease of capital as if the distributed property as
       liquidation payments has been sold at market price;
   b) the beneficiaries of the distributed property shall be treated as if they exchanged their
       participation share in the capital of the economic agent for a sum equal to the market value of the
       obtained property.
   (3) At the full liquidation of the branch (enterprise branch), the main enterprise shall not take into
       account the increase of decrease in capital as result of the selling of the property of the liquidated
       enterprise.
   (4) An enterprise shall be considered branch enterprise of the main enterprises exercises control over
       it during the entire period of liquidation, according to the conditions of art 55 line (2).
   (5) The term of conclusion of the process of full liquidation of the economic agent, as well as other
      requests regarding the fulfillment of liquidation conditions shall be set in accordance with the
      legislation.


Article 58. Reorganization of the economic agent

   (1) Reorganization of the economic agent is the fusion (absorption, merger), dismemberment
       (division and separation) or the transformation of the economic agent.
   (2) In the sense of the present title, the following shall be considered equivalent to the reorganization
       provided at line (1):
   a) obtainment of control over one economic agent in exchange of share-parts that grant the exclusive
       decision voting right within the purchased economic agent;
   b) the purchase of almost all actives of the economic agent in exchange of the share-parts that insure
       the decision voting right in the purchased economic agent.
   (2¹) In the context of the present chapter, by the term control is understood the presence in the capital
   of the economic agent of a participation quota, which includes:
   a) at least 80% from the decisive vote rights of all participation forms with decisive vote right
   b) at least 80% of the total number of shares in case of any other form of participation.
   (3) In case of reorganization, the economic agent who purchases overtakes the evidence method of
       the purchased economic agent together with his goods’ stocks and materials, losses reported for
       the futures, dividends accounts and other issues related to taxation, in a manner than the
       purchasing economic agents substitutes the purchased on in this regard.
   (4) The reorganization of the economic agents can be qualified or not qualified, fact to be determined
       by the State Fiscal Service.
   (5) The qualified reorganization is the full or partial reorganization of an economic agent according
       to the reorganization plan related to the entrepreneurship activity, a reorganization that does not
       have as aim or result the fiscal evasion of any economic agent or shareholder (associate).


   Article 59. Rules in case of liquidation or reorganization of the economic agent

   (1) In case of liquidation or reorganization of the economic agent:
   a) a group of related operations shall be considered as one single operation;
   b) the form of operations is not relevant in cases when it does not affect the essence of these
       operations;
   c) any non-qualified reorganization of the economic agent shall be considered as selling of this
       economic agent and of all his actives;
   d) in the Fiscal state Service established that one or more participating parties to the operation are
       not resident, than the increase of the capital, the full liquidation or reorganization of the economic
       agent can be treated as an operation where the increase or losses of capital are not recognized.
(2) In case of qualified reorganization:
a) value basis of the property of the reorganized economic agent shall be considered as value basis
    of this property before the reorganization;
b) redistribution (transfer) of the property of the economic agent among the parties involved in the
    reorganization shall not be taxed; yet
c) any compensation, received from any person (including of any party involved in the
    reorganization), that does not constitute a participation share in the capital of any party shall be
    considered payment in the favor of the beneficiary.
(3) A party involved in the reorganization is:
a) the buying economic agent – the economic agents that purchases the participation shares (or
    actives) in another economic agent;
b) the purchase economic agent – the agent whose participation share (or actives) are being
    purchased;
c) any economic agent that appears as result of the reorganization;
d) the economic agent in whose participation shares (or actives) were purchased from another
    economic agent in the process of reorganization.
(4) In case of distribution of the participation shares in the share part involved in the reorganization
    qualified to some shareholders (associated) of this part, the respective payment shall not be taxed.
(5) In case of reorganization or partial liquidation of the economic agent, the taxation set for the
      complete qualified reorganization shall apply to the liquidated part.


Chapter 9
Rules regarding companies and investment funds

Article 60. Determination of the income (or losses) of the company

(1) The income (or losses) of a company shall be considered as income (or losses) of the legal entity
      that uses for evidence the calculation method except for the fact that the company is not allowed
      to:
a)    deduct the donations in philanthropic or sponsorship aims, provided at art. 36;
b)    future reporting of the losses, provided at art. 32.
(2)   when determining of the income of a member of the company in the fiscal year, the evidence of
      the share-parts of this member, distributes to all components of the income (losses), increase
      (losses) of capital, deductions, transfers to account, donations in philanthropic aims in the
      respective years shall be kept separately.
(3)   Each component part of the income (or losses), of the increase or decrease of capital, deductions,
      account transfers, donations in philanthropic aims shall be considered as distributed among
      members of the company, regardless of the fact if the latter is a component and if it was or wasn’t
      distributed.
   (4) The Principle State Fiscal Inspectorate, by the Ministry of Finance, regulates through its
       instructions the way of evidence of all components of the income, if the evidence of each
       component is not necessary for the correct reflection of the income of the member of the
       company.
   (5) The member of the company shall not be allowed to deduct that share of losses that corresponds
       to the share-part distributed to him, that surpasses the adjusted value basis of his share in the
       company, except for the cases of full liquidation of the company.


Article 61. Payments performed by the company

   (1) Any payment, in goods, performed by a company shall be considered as sale of property at the
       market price and as payment of the corresponding sum of monetary means.
   (2) Any payment performed by a company in favor of a member (including payments in case of
       liquidation) shall be included in the income of the latter only in the measure that it surpasses the
       adjusted value basis of its share part in the company. If the total amount paid at the full
       liquidation of the company is smaller that the adjusted value basis, the difference shall be
       considered as share-part of this member in the losses of the company in the fiscal year in which
       the liquidation has ended.


Article 62. Adjusted value basis of the share-part of the members of the company

The adjusted value basis of the share-part of each member of the company represents the sum deposed by
the latter in the company:
    a) increase with the share-part distributed to him in income and in the increase in capital, in which
         the gross income is included;
    b) decreased with the sum of performed payments;
    c) adjusted, taking into account other incomes and expenses of the company (if there are grounds for
       that).


Article 63. Investment Funds

   (1) The provisions of the present article shall apply over the activity of the investments funds,
       activity regulated in accordance with the legislation.
   (2) The incomes of the investment funds, which shall be distribute and paid to its shareholders, are
       formed from dividends, increase in capital, interests and from other incomes.
   (3) The payments of the investment fund in favor of its shareholders shall be performed in
       accordance with the legislation regarding the investment funds.
   (4) The incomes of the investment fund shall be taxed in the generally provided way.


   Chapter 10
   Taxation of the non-state pensions’ funds

   Article 64. Qualified non-state pensions’ funds

   The non state pensions’ funds are considered as qualified if these are founded on voluntary
   principles, aiming the improving the material situation of the aged citizens, by paying a
   supplementary pension, and correspond to the following conditions:
           a) the share-part of the natural person in the actives and in the income of this fund is
              deposed, according to the legislation, immediately to a separate account, from which it is
              prohibited to lift the means (except for their transfer to the members of the fund) until:
   - attaining by the person of the retirement age, provided by the legislation; or
   - death or appearance of the disability of the person;
           b) in case of death of the person, the actives from his/her account in this fund will be paid to
              its successors or, upon their decision, the successors ca join the pensions fund with the
              share[part within the limits of the inherited actives;
           c) the actives and income of the fund are being kept on a separate account in the financial
              institution that is the depositary of the actives of the fund, according to the legislation;
           d) the fund provides for an adequate protection, provided by the legislation, regarding
              granting of the loans, selling of the actives or performance of other similar actions;
           e) the fund is registered according to the legislation.


Article 65. Non qualified non state pensions’ funds

Any non state pensions’ fund that does not correspond to conditions of art 64 shall be considered a non-
qualified pensions’ fund.


 Article 66. Deductions of the installments

   (1) The amount poured by the employer into the account of a natural person during the fiscal year, in
       the qualified non-state pensions aiming at the accumulation shall be deduced from the gross
       income of the latter.
   (2) The natural person is allowed to deduct from its gross income a sum equal to the installment paid
       to the qualified non-state pensions’ fund.
   (3) The deduction of any installments in the non-qualified non-state pensions’ funds shall not be
       allowed.


Article 67. Restrictions regarding the deductions of the installments
   (1) For the natural person, the deducted sum, according to art 66 line (1), together with the deducted
       sum according to art 66 line (2), shall not surpass 15% from the income gained by the person in
       the fiscal year.
   (2) In the sense of the present title, income gained by the natural person is the gross income
       calculated for his work while being employed, obtained for the work as independent entrepreneur
       or otherwise obtained, according to the legislation. The given notion does not include the income
       having the form of pensions.


   Article 68. Taxation of the income of the qualified non-state pensions fund

   The income of the non-state qualified pensions fund shall not be taxed, but any payments made into
   this fund shall be included into the gross income of the beneficiary.


   Article 69. The qualified non-state pensions fund established abroad.

   (1) the qualified non-state pensions fund established abroad is defined by the Fiscal State Service as:
   a) a qualified non-state pensions fund created in accordance with the legislation of the foreign state;
   b) a fund that corresponds to the requests of art.64

   (2) Installments paid by the owner in the name of the employed into the qualified non state pensions
       fund established abroad shall be deducted from the gross income, within the limits set by art 67
       line (1).
   (3) Installments into the qualified non state pensions fund established abroad performed by a worker
       citizen of Moldova or a worker of a foreign state, whose activity duration in Moldova will not
       surpass 5 years, shall be deducted from the gross income, within the limits provided by the
       Government.



Chapter 10/1
Taxation of private notaries

Article 69/1 Notary’s activity

The notary’s activity is not an entrepreneurial activity and shall not be regulated by the acts that regulate
the latter.


Article 69/2 Taxation subject

Subject of taxation shall be the private notary
Article 69/3 Object of taxation
Object of taxation if the income of the private notary


Article 69/4 Expenses of the private notary

The private notary is entitled to cover, from the means received from notary services, the expenses
related to the performance of the notary activity, its technical-material insurance, rend and maintenance
of the notary office, payment for the technical staff employed.


Article 69/5 Tax share

           (1) the public notary shall not fall into the category of art. 15 of the present code
           (2) the total amount of the income tax shall be determined for the private notary in amount of
               18% from the monthly taxable income.

Chapter 11
Taxation of non-residents. Special provisions for the international treaties

Article 70. General disposals regarding the division of the income sources of the non-residents

   (1) the entire income of the non-resident taxpayer shall be split into:
   a) income obtained in Moldova and resulted from the entrepreneurial activities or work performed
       on the basis to work contract (agreement);
   b) income obtained abroad and resulted from the entrepreneurial activity or work performed on the
       basis of work contract (agreement);
   (2) If the present chapter does not provide otherwise, when determining the taxable income of the
       non-residents:
   a) shall be take into account only the income obtained in Moldova;
   b) shall be permitted the deduction only of those expenses that regard directly the income mentions
      at letter a), due to taxation in Moldova.


Article 71. Income of non-residents obtained in Moldova

The incomes of the non-residents obtained in Moldova shall be considered:
   a) incomes from the sale of goods;
   b) incomes obtained from service rendering, including management, financial, consultancy, auditing
       marketing, legal and agent (intermediation), informational services, rendered to a resident or a
       non-resident that has a permanent representation in Moldova, if such incomes are expenses of the
       permanent representation;
c) incomes, in form of capital increases, obtained from sale of real-estate property placed in the
     Republic of Moldova, determined according to the art.37-39;
d)   incomes, in form of capital increases, obtained from property sale, other than real-estate (except
     stocks of goods and materials), if buyer is a resident, determined according to the art.37-39;
e)   dividends paid by a resident economic agent;
f)   interests for the claims of the state or of one resident or non-resident that disposed of a permanent
     representation in Moldova, if such incomes are expenses of the permanent representation;
g)   incomes from the ceding of rights to a resident or non-resident that disposes from a permanent
     representation in Moldova, if such interests are expenditures of the permanent representation;
h)   fine for non-fulfillment of inadequate performance by any person of the obligations, including
     those based on the contracts of performance of works (render of services) and/or according to the
     external trade contracts of delivery of goods;
i)   incomes as honorariums, obtained from a resident or non-resident that disposes of a permanent
     representation in Moldova is such incomes are expenditures of this representation;
j)   royalty obtained from a resident or non-resident that disposes of a permanent representation in
     Moldova, if these royalties are expenditures of the permanent representation. These incomes
     include, in particular, any type of payments, received as compensation for the use or concession
     of any author right and/or of related rights over a literary, artistic or scientific work, including
     cinema movies and movies for television or radio-diffusion, for the use or concession of any
     invention certificate, commercial emblem, design or other model, plan, software, secret formula
     or process, for the use or concession of information regarding the experience in the industrial,
     commercial or scientific fields;
k) incomes from the operations of leasing, lease or sub-lease, from rent or from the usufruct of the
     property placed in the Republic of Moldova;
k¹) incomes from the operations of leasing, lease or sub-lease, from rent or from the usufruct of
maritime ships, air ships and/or rail or auto transportation means, as well as of containers;
l) incomes from the fees following the insurance and reassurance contracts
m) Incomes from the sea, air, road and rail international transportation, except the cases when
transportation is made only between the destination points situated outside the Republic of Moldova;
n) Incomes obtained from the activity carried out in accordance with the work contract (agreement)
or from that developed based on other contracts with civil character, including the honorarium of the
leaders, founders or members of the administration council and/or other payments received from the
members of the governance bodies of the legal resident person, regardless of the place of
performance of the administrative obligations entrusted to these persons;
o) Incomes as facilities, specified at art. 19, granted by the owner (beneficiary) of the non-resident
natural persons;
p) Annuities paid to non-state resident pensions funds;
q) Incomes obtained by the artistic persons, such as theatre, circus, cinema, radio, television artists,
     musicians, plastic artists or sportsmen, regardless of the fact to whom these payments are made;
r) Incomes obtained from rendering professional services);
s) Incomes from the prizes awarded at contests;
t) Commissions from a resident or non-resident that has a permanent representative office in
    Moldova, if such commissions are expenses of the permanent representative office;
t¹) incomes from gains received from publicity actions and gambling.
u) Other incomes, not specified at the previous letters, given that these are not exempted from
    taxation according to the fiscal legislation or other legal acts.


Article 72. Income obtained abroad

The components of the income obtained across the borders of Moldova are analogical to the
components of the income stated at art. 71


Article 73. Taxation rule for the incomes of the non-residents tat do not develop in Moldova an
activity through a permanent representation

(1) Incomes of the legal non-resident persons, specified at art. 71, that are not related to a permanent
    representation in Moldova, shall be due to taxation at the payment source according to art.91,
    with no right to deductions, except for incomes from rendering services related to opening and
    management of correspondent accounts of the correspondent banks and account settlements :
a) payments related to the delivery of goods on the territory of Moldova, according to the external
    trade contracts;
b) incomes from the render of services that relate to the administration of the correspondent
    accounts of the correspondent banks and to the performance of discounts.
(2) Taxation of the incomes of the non-resident legal persons at the payment source shall be made,
    regardless of the distribution by such persons of their incomes, to the favor of third parties and/or
    of their subdivisions in other states.
(3) Incomes of the physical non-resident persons, specified at art. 71, that are not related to a
    permanent representation in Moldova, shall be due to taxation at the payment source according to
    art 91, with no right to deductions except for the incomes mentioned in the paragraph (4);
(4) incomes of the physical non-resident persons, specified at art. 71 letters n) and o) shall be due to
    taxation at the payment source in the way provided by art 88, with no right to deductions and/or
    exemptions related to these incomes.
(5) The income tax at the payment source shall be retained from the non-residents regardless of the
    form and place of payment of the income.


Article 74. Taxation rules of the incomes of non-residents obtained from the resident physical
persons.

(1) Incomes of the non-residents obtained in Moldova from persons other than those mentioned at art.
    90, line (1), shall be taxed to income tax according to the present article at the quota specified at
      art. 91 or at the quotas provided at art. 15 letter a) for the incomes specified at art.71 letter n) and
      o), with no right to deductions and/or exemptions related to these incomes.
(2)   The non-residents that correspond to the conditions of line (1) and who obtain incomes specified
      at art. 71 letters a)-k), n), o), q)-s) and u), fulfill the conditions of line (3), calculate and pay the
      income tax independently, according to line (4).
(3)   The non-residents are obliged to inform the fiscal body at their residence place regarding their
      activity within 15 days from the time of arrival to Moldova.
(4)   The non-residents mentioned in the present article, within 3 days from the moment of conclusion
      of their activity in Moldova, are obliged to present to the fiscal body mentioned at line (3), the
      document regarding the income tax, according to the from approved by the Principle State fiscal
      Inspectorate by the Ministry of Finances, and to pay the income tax at the quota specified at art 91
      or the quotas provided at art. 15 letter a) for the incomes specified at art.71 letter n) and o), with
      no right to deductions and/or exemptions related to these incomes. One shall attach to the
      document regarding the income tax, the copy of the work contract (agreement) or other civil
      contract, other documents that confirm the amount of the taxable income and of the income tax
      retained at the source of payment.
(5)   The provisions of the present article shall apply to the incomes obtained by non-residents, which
      do not fall under the category of art. 73 and 75.


Article 75 Taxation rules of the non-residents that develop activity in Moldova via a permanent
representation

(1) The incomes of the non-residents who develop an activity through a permanent representation,
    obtained in Moldova, shall be considered as incomes specified at art.71 letters a)-m), r), t) and u)
(2) In case of non-residents that have a permanent representation according to art. 5 point 15), this
    shall be considered, in fiscal aims, as resident economic agent, but only in relation to the income
    obtained in the Republic of Moldova in accordance with line (1) and with:
a) expenses for governance and administrative expenses, according to the provisions of the national
    accountancy standards, discounted by the non-residents and registered by the permanent
    representation, which are deductible in the limit of 10% from the salary calculated of the
    employed of this permanent representation.
b) Expenditures related directly to this income, certified documentary, according to the provisions of
    title II.
(3) the evidence of the non-residents that have a permanent representation as a taxpayer, shall be
    performed in accordance with chapter 4 of the title V.
(4) The permanent representation of the non-resident, situated in Moldova, has no right to transfer to
    deductions the amounts presented by this non-resident as:
a) royalty, honorariums and other similar payments for the use or concession of the property or of
    the results of the intellectual activity;
b) payments for the services rendered by him;
   c) interests and other remunerations for the loans granted by this;
   d) expenses that do not relate to the obtaining of incomes from the activity developed in Moldova;
   e) expenses that are not certified documentary.
   (5) By derogation from the provisions of the present article, the work according to the work contract
       (agreement), performed by the natural non-resident persons, does not lead to the formation of the
       permanent representation of these natural persons.


Article 76. Rules for non-residents that have a representation in Moldova

   (1) the fact that the non-residents have a representation in Moldova, according to art. 5, point 20),
       does not constitute ground for the recognition of these persons as payers of the income tax, with
       all due consequences that result from the fiscal legislation, except for those provided at line (2)
       and except for the obligation to retain an income tax on payment source .
   (2) The representation shall be granted a fiscal code in accordance with the present code.
   (3) The representation shall keep the accountant evidence in accordance with the requests provided
       by the Law on accountancy and by the national accountancy standard and to present annually to
       the fiscal body at the place of residence, not later than 31 March of the immediately following
       fiscal years, the document regarding the activity developed in Moldova.
   (4) After the conclusion of the activity in Moldova, the non-residents that have a representation on
       the territory of Moldova are obliged to present within 10 days, the document regarding the
       performed activity, attaching the confirming documents. This document shall be presented to the
       fiscal body, specified at line (3), if the fiscal legislation does not provide otherwise.
   (5) The way and the form of the document, specified at line (3) and (4), shall be regulated by the
       instructions of the Principle State Fiscal Inspectorate by the Ministry of Finances.


   Article 77. Rules for the non-residents that perform works on the construction site

   (1) In the sense of the present chapter, a construction site of the non-resident on the territory of
       Moldova means:
   a) the construction place of new objects, as well as those of reconstruction, widening, technical
       reformation and/or repair of existent objects of immovable property;
   b) the construction place and/or assembling, repair or reconstruction and/or technical reformation f
       buildings, including of the floating and fodder installations, as well as of machinery and utilities
       whose normal functioning needs stable fixing of their foundation or on the construction elements
       of the building, or other floating objects.
   (2) When establishing the existence term of the construction site, aiming at determining the statute of
       the non-resident on the territory of Moldova, in the sense of the present chapter, including the
       calculation of the income tax and taking to evidence of the non-resident by the fiscal bodies,
       works and other operations, whose duration is included in this term comprise all the works of
       preparation, construction and/or installation performed by the non-resident on this site of
   construction, including the works of creation of access ways, communications, electrical cables,
    drainage and other infrastructure objects, except for the objects of infrastructure initially created
    with other aims that those that relate to this construction site.
(3) In case when the non-resident, being general entrepreneur entrusts the performance of a share of
    the works to other persons (sub-entrepreneurs), the time period consumed by the sub-
    entrepreneurs for the performance of works shall be considered as period of time consumed by
    the general entrepreneur itself. This provision shall not apply to the period of works performed by
    the sub-entrepreneur according to the direct contracts with the beneficiary, and which shall not be
    included into the amount of works entrusted to the general entrepreneur, except for the cases in
    which these persons and the general entrepreneur are interdependent persons, according to art. 5,
    point 12).
(4) In case when the sub-entrepreneur, mentioned at line (3), is a non-resident, his activity on this
    constructions’ site, as well, shall be considered as permanent representation of this sub-
    entrepreneur on the territory of Moldova.
(5) The beginning of existence of the constructions’ site, in fiscal aims shall be considered the
    following dates:
        a) date of signature of the act of transmission of the site to the general entrepreneur (of the
           act of admission of the staff of the general sub-entrepreneur for the performance of his
           part of the total volume of works); or
       b) the date of effective commencement of the works.
(6)The expiry of the term of existence of the construction site shall be considered the date of
signature by the beneficiary of the act of receipt of the object or of the complex of works provided by
the contract. The termination by the sub-entrepreneur of the works shall be considered the date of
signature by the general entrepreneur of the act of receipt of the works. In case the act of receipt has
not been performed pr the works have been concluded after the signature of such an act, shall be
considered that the construction site shall ceased its existence (the works of the sub-entrepreneur
shall be considered as concluded) at the date of effective conclusion of the preparation works,
construction or installation, that shall be included into the amount of works of the respective person
on this constructions site.
(7)It shall not be considered that the constructions site has ceased its existence if the works on it are
temporarily interrupted, except for the cases of conservation of the object for a period larger than 90
days, according to the decision of the public administration bodies, adopted in the limits of their
competence or, as result of the action of some circumstances of force majeure. The continuation or
re-take, after the interruption, of the works on the construction site after the signature of the act
specified at line (5) leads to the annexation of the term of performance of continued or re-taken works
and of the interruption between the works at the entire term of existence of the construction site only
if:
        c) the territory of the retaken works is the territory of the works previously suspended or
            closely related to it;
          d) the continued or retaken works at the object are entrusted to the person that previously
                performed works on this construction site or the new and previous entrepreneur are inter-
                dependent persons.
   (8)In the continuation or the retake of the works, according to line (7), is linked to the construction or
   installation of a new object on the same construction site or is linked to the enlargement of the
   previously finalized object, the term of performance of such works continued or retaken and of the
   interruption between works, as well, shall be annexed to the entire term of existence of the
   construction site. In the rest of the cases, including performance of repair, reconstruction or technical
   reformation of the object that has previously been given to the beneficiary, the term of performance
   of the continued or retaken works and of the interruption between the works shall not be annexed to
   the entire term of existence of the construction site, works began at the previously given object.
   (9)The construction or installment of such objects as roads, highways, channels, communications,
   within whose performance changes the geographical placement, shall be considered as one
   construction site.


Article 78. Income of the natural person that stops being a resident of that obtains a statute of
resident

   (1) The natural person that stops being a resident is considered that as if the person has sold its entire
       property except for the immovable property, at its market price at the moment when it stopped
       being a resident.
   (2) Any natural non-resident person who obtained the statute of resident is entitled to determine the
       market value of its property at the moment of obtainment of the statute of resident. The value
       determined in such a way constituted the value basis of its property, which is taken into account
       when establishing the income of the taxpayer as result of selling of this property.


   Article 79. Transfer into the account of the taxes

   The natural non-resident person that presents the declaration regarding the income is entitled to
   transfer into the account the taxes retained from his salary in accordance with art. 88.


   Article 79/1 Provisions for the non-resident economic agents

   (1) In the sense of the present chapter, a non-resident economic agent who develops investment
       activity outside of Moldova, shall be considered:
           e) any non-resident economic agent, more than 50% of whose income I the current fiscal or
               previous fiscal year is income from investments and financial income obtained from
               sources located abroad;
            f)   any other economic non-resident agent created or used for avoiding of a resident from the
                 payment of the income tax from investments and for the financial income obtained from
                 sources located abroad, lifted in accordance with the present title.
   (2)   the share of the resident shareholder (associate) in the income of any non-resident economic agent
         that performs investment activity abroad shall be considered as income obtained by the owner of
         5% from the capital of the respective economic agent.
   (3)   A person shall be considered the owner of 5% from a capital of the non-resident economic agent
         when the participation share of this person and of the interdependent persons in the capital of the
         economic agent is equal or overpasses 5% from all participation shares in the capital of the
         respective economic agent.
   (4)    The resident taxpayer that obtains taxable income according to line (2) shall be considered as if
         he paid the income tax in another country. The tax mentioned is paid effectively by the economic
         agent.
   (5)   For each resident taxpayer that shall pay the tax in accordance with line (2) shall be kept another
         account of the income tax previously paid by the economic agent. If the ulterior payments of the
         income to the taxpayer do not surpass the balance of this account these shall not be taxed.


 Article 79/2 Incomes from a source located outside of the Republic of Moldova of 10% of the
capital of a non-resident

If the non-resident taxpayer possesses (directly or indirectly) 10% or more of the participation shares of a
non-resident economic agent, whose all actives are used for doing business abroad, the dividends that this
taxpayer obtains or which are calculated by this economic agent shall be considered income obtained
from a source located abroad, representing income from investments or financial income.


Article 79/3. Special provisions with regard to international treaties

   (1) The application of the international treaties that regulate the taxation or include norms that
       regulate the taxation shall b performed in the way provided by the provisions of the international
       treaties and of the present code, as well as by the legal acts of the Ministry of Finances, adopted
       in accordance with the present code, in case they don’t contravene to the provisions of the
       international treaties.
   (2) In order to benefit from the fiscal facilities in accordance with the international treaties, the non
       residents that are entitled to receive the income shall present the person who pays the income,
       until the date of its payment, a confirmation of the fact that these non-residents have a permanent
       residence in the state with which Moldova has signed an international treaty that regulates the
       taxation or includes norms that regulate the taxation, certified by the competent body of the
       respective foreign state translated into Moldovan language. Conformation is presented in original
       for each fiscal year when the income, regardless of the number, payment regularity and type of
       the paid income.”
   (3) When presenting of the confirmation regarding the permanent residence by non-residents, the
       income for which the international treaties establish a preferential taxation regime in Moldova
       shall be exempted from taxation at the payment source or the income tax at the payment source
       shall be retained at a reduced quota. In case when the shares of the tax from the internal
       legislation are more favorable that those from the international treaties, the shares provided by the
       internal legislation shall apply.
   (4) For transfers into account of the income tax paid in Moldova, upon a written request of the non-
       residents, shall be issued a certificate regarding attestation of the income tax paid in Moldova.
   (5) The return of the tax, retained in addition from the incomes obtained in Moldova by non-residents
       whose activity is not linked to a permanent representation and that surpasses the amount of the
       tax calculated according to the quotas provided by the international treaties to which Moldova is
       part, shall be performed in the way provided by the legal acts of the Ministry of Finances. The
       documents needed for performing reimbursement shall be presented within the term stipulated by
       international treaties.
   (6) In case of unlawful application of the international treaties that lead to the non payment or the
       insufficient payment to the budget of the income tax, the person which, according to the present
       chapter, is obliged to retain a tax at the source of payment shall be held liable in accordance with
       the present code.


                                          Chapter 12
                                     Tax regime for dividends

Article 80. Taxation of dividends

   (1) The economic agent pays the dividends to its shareholders (associates) from the income remained
       after taxation.
   (2) Legal entities, individual enterprises, farmers’ households which receive dividends from
       economic agents include these dividends in the gross income and pay the income tax in
       accordance with the legislation.


Article 80¹ Preliminary payment of the tax on dividends
     (1) The economic agent who pays the dividends to its shareholders (associates) during the fiscal
      year retains and pays as tax a sum equal to 15% from the sum of the dividends which will be paid.

     (2) The sum retained by the economic agent according to the paragraph (1) is transferred to the
     account as tax applied to taxable income of the economic agent for the fiscal year in which the
     withholding has been made, respectively.
   (3) If in any fiscal year the transfers to account allowed to the economic gent in accordance with line
       (2) surpass the amount of income tax in the respective year, the difference shall be compensated
       in the manner established in the art.175 and 176.



                    Chapter 13. Transfer into the account of the taxes

   Article 81. Transfer into the account of the calculated and withheld taxes

   (1) The taxpayer is entitled to transfer into the account of the income tax during the fiscal year, the
       following:
   a) sums withheld from them during the respective fiscal year in accordance with art. 88, 89 and 90;
   b) sum withheld in accordance with art. 80 in case the taxpayer is a legal person;
   c) payments done during the respective fiscal year in accordance with art 84;
   d) Taxes paid outside of Moldova, whose transfer into account is allowed according to art. 82, for
       the sums paid or calculated in the same fiscal year.
   (2) If the transfers into account, to which the taxpayer is entitled to in accordance with line (1) letter
       a) and c), surpass the total sum of the income tax calculated according to art. 15, the fiscal body
       performs the conclusion of the fiscal obligation through compensation – according to art. 175
       and, according to the case – restitution to the account – according to art. 176.


   Article 82. Transfer into the account of the tax paid abroad

   (1) The taxpayer can transfer into the account the income tax paid in any foreign state, if this income
       shall be due to taxation in Moldova as well. The transfer into the account of the income tax can be
       performed given that the taxpayer presents the document that certifies the payment (withhold) of
       the income tax outside of Moldova, certified by the competent body of the respective foreign
       state, translated into the state language.
   (2) The size of the account transfer, specified at line (1), for any fiscal year can not surpass the sum
       that would have been calculated at the quotas applied in Moldova towards this income.
   (3) Transfers into the account of the tax paid in another state shall be done in the year in which the
       respective income is due to taxation in Moldova.


Chapter 14. Presentation of the declaration regarding the income tax and of the document
regarding the income of the company. Use of the fiscal code.

Article 83. Presentation of the declaration regarding the income tax and of the document related to
the income of the company

   (1) The right to present the declaration on income tax belongs to all taxpayers.
(2) The following persons are obliged to present the declaration on income tax:
a) natural resident persons (Moldovan citizens, foreign citizens, apartheids including members of
   companies and investment fund) that have obligations regarding tax payment.
b) natural resident persons (Moldovan citizens, foreign citizens, apartheids including members of
   companies and investment fund) that have no obligations regarding tax payment, and yet:
- obtain taxable income from sources other than the salary, that surpasses the sum of personal
   exemption of 7200 lei per years, granted in accordance with art. 33 line (1);
- obtain taxable income as salary that surpasses the amount of 25200 lei per year, except for the
   natural person that obtain income as salary from one work place;
- obtain taxable income both as salary and other sources, whose total sum surpasses 25200 lei per
   year;
c) legal resident entities (joint stock companies, limited liability enterprises, cooperatives, rent
   enterprises state and municipal enterprises, including their unions; investment funds and private
   institutions that work in the field of finances, health protection, education, science and culture;
   public associations, foundations, socio-political organizations, trade unions, religious
   organizations, employees’ associations, organizations of lawyers and notaries, including their
   unions; other organizations provided by the legislation), except for the public authorities and
   public institutions, regardless of the obligation of tax payment.
d) residents that have organization form with status of natural person, according to the legislation,
    as well as persons that administrate, according to art. 17 the succession, regardless of the
    obligation of tax payment is present or not;
e) Permanent representation of the non-resident in Moldova, regardless of the obligation of tax
    payment is present or not;
(3) companies defined at art. 5 point 9) and at chapter 9, in the person of the leader or other
    representative of the former, are obliged to present a document regarding the obtained income in
    the respective fiscal years, together with the necessary information, in accordance with the
    requests of the Fiscal State Service.
(4) The declaration regarding the income tax or the document regarding the income of the company
    shall be filled in, in accordance with the instructions of the Principle Fiscal State Inspectorate by
    the Ministry of Finances, according to the form approved by the latter, and shall be presented to
    the fiscal State Service not later than 31 March of the following fiscal year, except for the cases
    provided at lines (5)-(10). In case of discovery by the taxpayer, after the 31 of March in the
    presented declaration or in the document regarding the income of the company, of mistakes that
    lead to the need of introduction of corrections into the fiscal declaration or in the document
    regarding the income of the company, the taxpayer is entitled to present, within the conditions of
    the present code, a correct report.
(5) The natural persons that are obliged to present the declaration regarding the income tax, when
    finding out the fact of extra payment of tax, are entitled, within the established term or even later,
    to present a declaration stating the amount paid extra, which shall be restituted according to the
    fiscal legislation.
(6) If the taxpayer legal person, permanent representation or organizational from with status of
    natural person, according to the legislation ceases its activity during the fiscal year, the person
    responsible is obliged, within 5 days from the moment of cease of activity, to inform about it, in
    written the territorial body of the state Fiscal Service, and, within 60 days from the moment of
    taking of the decision of cease of activity, to present the declaration regarding the income tax for
    the entire period of the administration year during which the legal person, the permanent
    representation or the organizational form with statute of natural person, according to the
    legislation, has developed entrepreneurial activity.
(7) If the taxpayer intends to change his permanent domicile from Moldova to another country, he is
    obliged to present the declaration regarding the income tax, in the way provided by the Principle
    Fiscal State Inspectorate by the Ministry of Finances, for the entire period of the year for which he
    was a resident.
(8) Upon the written request of the natural person, the State Fiscal Service can prolong (within
    reasonable limits) the term of presentation of the declaration regarding the income tax. The
    prolongation of the term shall be admitted only in case the request has been submitted before the
    expiry of the term set for the presentation of the declaration.
(9) By derogation from the provisions of line (2) letter d), the farmers household which, during the
    fiscal period did not have employed persons and did not obtain taxable income, shall be exempted
    from the obligation regarding the presentation of the declaration regarding the income tax.
(10) The representation that obtains status of permanent representation, according to art. 5 point 15),
    within 30 days from the moment of obtainment of this status, is obliged to present to the territorial
    Fiscal State Service the declaration regarding the income tax for the fiscal period of the previous
    year during which the entrepreneurial activity has been developed.
   (11) Through derogation from the provisions of the paragraph (2) letter d), individual entrepreneur
    or peasant household, the annual average number of employees of which during all the fiscal
    period does not exceed 3 units and which are not registered as VAT payers, shall submit not later
    than 31st of March of the year following the reporting year, a fiscal report (declaration) regarding
    the income tax.


Article 84. Tax payment in shares

(1) The taxpayers that obtain income not from paid wok or from which the income tax from interests
    and royalties is not withheld at the source of payment, according to art. 89 line (2) and whose
    fiscal obligations, according to the present title, surpassed in the previous fiscal year the sum of
    400 lei are obliged to pay, not later than 31 March, 30 June, 30 September and 31 December of
    the fiscal years, sums equal to ¼ of:
a) the sum calculated as tax that shall be paid, according to the present title, for the respective year;
   or
b) the tax that shall be paid, according to the present title for the previous year.
(2) The agricultural enterprises, the farmers enterprises, obliged to ay the tax in shares, according to
    line (1), have the right to pay for the income tax in two stages: ¼ from the sum stated at line (1)
    letter a) or b) – until 31 March and ¾ of this sum – until 31 December of the fiscal year.
(3) Enterprises, institutions and organizations that have branches and/or subdivisions outside the
    administrative-territorial unit in which the central headquarter is located shall transfer to the
    budgets of the administrative-territorial units at the siege of the branches and/or the subdivisions,
    the share of the income tax calculated proportionally to the average number of employed persons
    of the branch and/or subdivision for the previous year or for the share of the income tax
    calculated proportionally to the income obtained by the branch office according to the financial
    evidence of the latter for the previous year.


Article 85. Signing of declarations and other documents

(1) The declaration, the report or other documents which according to the provisions of the present
    title shall be presented to the Fiscal State Service shall be performed and signed in accordance
    with the rules and forms established by the respective service.
(2) The name of the natural person stated in any document signed by the latter serves as evidence that
    the document was signed exactly by this respective person, if there are no contrary evidences.
(3) The declaration regarding the income tax of one legal person shall be signed by the respective
    person/persons that are entitled with this responsibility.
(4) The declarations and other documents which, according to the provisions of the present title shall
    be presented to the State Fiscal Service shall contain a notification of the taxpayer that, in case in
    which will include in the respective documents false information or which induce an error, he will
    be liable according to the legislation.


Article86. Use of the fiscal code

Each person that obtains income or which performs taxable payments, in accordance with the present
title, uses the granted fiscal code with the aim of evidence of the taxpayers provided by the present
code and by other normative acts adopted in accordance with the latter.


Article 87. Terms, way, form and place of payment of the tax

(1) The taxpayer which, according to art 83 is obliged to present de declaration on income tax
    (without any supplementary request from the Fiscal State Service) pays the income tax not later
    than the term et for the presentation of the declaration (without taking into account the
    prolongation of the term).
(2) The way, form and place of payment of the tax are regulated by the Principle Fiscal State
    Inspectorate by the Ministry of Finances, by regulations, orders and instructions.
   (3) In case of receipt of a notification or request on behalf of the Principle State Fiscal Service, the
       sum of the tax, penalties and fees related to it, stated in the notification or I the request shall be
       paid by the contributor not later than the term set and on the address stated in these documents.
   (4) The notification of the request of the Fiscal State Service shall be handed in to the taxpayer
       personally or shall be send by post to the last address of the latter stated in the registry of the
       Principle Fiscal State Inspectorate by the Ministry of Finances.


Chapter 15
Withhold of the tax at the payment source

Article 88. Withholding of the tax from the salary

   (1) Each employer who pays to the employee a salary (including primes and facilities) is obliged to
       calculate, taking into account the exemptions requested by the employee, and to retain from these
       payments a tax, determined in accordance with the way provided by the Principle State Fiscal
       Inspectorate by the Ministry of Finance.
   (2) For obtaining exemptions, the employee shall, not later than the date set for the begin of work as
       employee, present the employer the request signed by him regarding the granting of these
       exemptions to which he is entitled, attaching to it documents that certify this right. The worker
       who doe not change his work place is not obliged to present to the employer annually the request
       regarding the granting of exemptions and the corresponding documents.
   (3) If during the fiscal year the sum of the exemptions to which the employee is entitled changes, this
       is obliged to present the employer, within 1 days from the moment the change occurred, a new
       request signed by him with the corresponding documents annexed.
   (4) The presentation, with reasonable knowledge, in the request and in the documents that confirm
       the right to exemptions of some false information or information that leads to an error, triggers
       the application of a fine and the criminal liability provided for by the legislation.
   (5) If a natural person that renders services and is considered independent entrepreneur possesses two
       or more characteristics that define him as a paid employee, the income is considered by the
       employee as salary from which the tax is retained, according to the present article.
   (6) The employee is entitled to request that the employer retains from the payments the tax at a 18%
       share


   Article 89. Withhold of the tax from interests and royalties

   (1) Each payer of interests in favor of natural persons, except for the individual enterprises and
       farmers enterprises, and of royalty (except for payments performed towards non-residents) is
       obliged to retain from each interest and royalty and to pay as share of the tax a sum equal to 15 of
       the payment.
   Article 90. Withholds from other payments performed in the interest of the resident

   (1) Any person who carries out entrepreneurial activity, any representative office, according to the
       art.5 point 20), any institution, organization, including any public authority and public institution,
       that pays for the services provided at line (2), withhold, provisionally, as part of the tax, a sum of
       5% from the respective payment, that shall be transferred to the account of the tax due to be paid
       by the persons that render services provided at line (2).
   (2) The sum in amount of 5% shall be withheld, according to line (1), at the payment of the following
       type of services:
   a) Rent (except for rent of agricultural lands);
   b) Advertising services: advertising through the means of periodical publications, radio, TV,
       external advertising and advertising on the means of transport, advertising at the place of selling
       of goods and development of cultural, theatre and sports events;
   c) Auditing services: organization, re-establishment and bookkeeping, performance of financial
       reports and fiscal declaration, estimation of the financial situation, analysis of the economical-
       financial activity, organization of the computerized evidence, evaluation of property, assistance in
       the field of taxation and administration; legal assistance in issues of economic-financial activity;
   d) Management, marketing, consultancy services: elaboration of new administration concepts,
       market prospects, prospects of requests and needs of the consumer; research and forecast of the
      internal and world goods’, services market, elaboration of new technology, elaboration of
      feasibility studies for the objectives of international cooperation, establishment of joint
      enterprises, etc;
   e) Services of protection and guard of persons and goods rendered by the organizations and persons
      that practice activity of detective – protection, according to the legislation;
   f) Services related to the installation, service and reparation of the calculation technique, of the
      communication and network utilities, of periphery mechanisms; services of data processing,
      creation and maintenance of the databases and other service in the field of computer sciences.
   (3) Persons named at line (1) withhold, also, in prior, as part of the tax, a sum of 5% from the
   payments performed in favor of the natural person, except for the individual entrepreneurs and the
   farmers enterprises, on the incomes obtained by these according to art. 18. The sum of 5% shall not
   be withheld in favor of the natural person for the incomes obtained by the latter according to art 20,
   88, 89, 90¹ paragraph (3) and 91.


Article 90/1 Final withhold of the tax from some types of income

   (1) Each payer of gains from the advertising actions is obliged to withhold from each gain and pour
       into the budget a tax equal to 10%.
   (2) No withholds shall be made from gains specified at art 20, letter p/1)
   (3) Persons specified at art. 90, line (1) withhold a tax of 10% from income obtained from natural
       persons than do not develop entrepreneurial activity, or from the transmission onto possession or
       use (rent etc) of movable and immovable property except for the rent of agricultural land.
         (3¹) Persons specified in the art. 90 paragraph (1) withhold and pay to the budget a fee at the
          rate of 15% from:
           a) dividends, except for those paid to resident economic agents;
           b) payments in favor of physical persons, in monetary and non-monetary form, the sum of
               which is not deductible for fiscal purposes and is not qualified as taxable income for
               physical persons, in accordance with art. 18, including the patrimony transmitted by the
               physical persons as donation title;
           d) incomes directed for payment to founders individual entrepreneurs or peasant households.
           The provision of this letter shall not be applied to founders-individual enterprises and peasant
           households which obtain profits from sales in the amount of up to 3 million lei per year, with
           an average staff number which does not exceed 9 persons.

           (3²) During the action period of the provisions of the paragraph (3¹), the art. 80¹ and art. 89
           shall not be applied to the part related to the withholding of the royalty tax paid in favor of
           economic agents, as well as the art.90 paragraph (2). The provisions of the present paragraph
           shall not extend over the payment of dividends in favour of resident physical persons related
           to the fiscal periods until January 1, 2008.

           (3³) Each payer of gains from gambling is obliged to retain from each gain and transfer to the
           budget a fee at a rate of 10%.

           (34) The subjects of taxation physical persons, who do not carry out entrepreneurial activity
           and transmit to persons other than those mentioned in art. 90 paragraph (1) for possession
           and/or use (lease, rent, usufruct) real-estate property, shall pay a fee at a rate of 5% from the
           contract value. The mentioned persons are obliged, within 3 days from signing the contract, to
           register the signed contract in the fiscal body of the area where they are served. This fee shall
           be paid monthly, not later than the 2 day of the ongoing month, or in advance. If real-estate
           property has been transmitted in possession and/or use (lease, rent, usufruct) after the second
           day, the payment period in this month will be the second day from the moment of concluding
           the contract. The sum of the fee paid in advance shall not be reimbursed from the budget.



   (4) Final withhold of the tax established in the present article exempts the beneficiary of the gains
     and incomes specified at paragraphs (1), (3), (3¹), (3³) and (34) from their inclusion in the
     composition of the gross income as well as from their declaration.
Article 90² Fiscal regime for some types of expenses
When the limit for the expenses related to donations for philanthropic or sponsoring purposes set in art.
36 is exceeded, the taxpayer shall calculate and pay a fee of 15% from the sum of the exceeding.


Article 91. Withholds from the incomes of the non-resident

   (1) The persons named at art 90 line (1) withhold from the income of the non-resident, specified at
       art 71, a tax from the sum of payments in favor of the non-resident (with no right of transfers into
       the account of these for the residents) in the size of:
   a) 15% - from dividends;
   b) 15% - from payments directed for payment to the nonresident in monetary and non-monetary
       form granted to him, the sum of which is not deductible for fiscal purposes
   c) 10% - from other incomes which were not mentioned in letter a) and b).

   (2) Provisions of line (1) will not apply:
   The provisions of the paragraph (1) shall not be applied to the incomes obtained in form of salary
   from which the deduction according to art. 88 is made.


   Article 92. Payment of the taxes withheld at the source of payment and presentation to the
   fiscal bodies and taxpayers of documents regarding the payments and/or taxes withheld.

   (1) The tax withheld according to art. 88-91 shall be paid to the budget by the person that performed
       the withholds, within one month from the end of the month in which the payments were made.
       The tax calculated according to the art. 90² shall be paid to the budget not later that 31st of March
       of the year following the management fiscal year.
   (2) The fiscal reports related to the paid incomes and the income tax withheld at the source of
       payment shall be presented by the payers of the incomes to the territorial fiscal body within one
       months after the conclusion of the month in which the payments were done, except for the report
       stated at line (3), for which another term of submission is set. The report regarding the calculated
       according to art. 90² shall be presented to the territorial fiscal body not later than 31st of March of
       the year following the management fiscal year.
   (3) Persons who are obliged to withhold the tax in accordance with art. 88, 89, line (1), art. 90 ad 91
       will present the territorial fiscal body, within one month from the end of the fiscal year a report,
       in which will be indicated the name and surname, address and fiscal code of the natural or legal
       person in favor of which the payments were performed, as well as the total sum of payment and
       of the income tax withheld. This report shall include also data regarding persons and/or incomes
       exempted from prior taxation according to art 89, line (2) and art 90 line (2), letter a), as well as
       the sums of the incomes paid in their interest.
   (4) Persons named at line (3)are obliged, until the 1st of March of the immediately following year to
       the one when the payment were dome, to present to the beneficiary of these payments information
       regarding the type of the paid income, the amount of the latter, the sum of exemptions granted
       according to art. 33-35, sums of deductions provided at art 36 line (6) and (7), as well as the sum
       of the withheld tax.
   (5) The Principal State Fiscal Inspectorate by the Ministry of Finances establishes in its instructions
       the list and form of requested documents according to the present article, as well as the way of
       their completion.
   (6) By derogation from the provisions of the paragraph (1), the individual entrepreneur, farmer’s
       household, of which annual average number of employees, during the fiscal period, does not
       exceed 3 persons and which are not registered as VAT payers, shall pay the tax to the budget,
       withheld according to the art.88-91, but not later than 31 of March of the of the year following the
       fiscal reporting year.
   (7) By derogation from the provisions of the paragraph (2), the individual entrepreneur, farmer’s
       household, of which annual average number of employees, during the fiscal period, does not
       exceed 3 persons and which are not registered as VAT payers, shall submit, but not later than 31
       of March of the year following the fiscal reporting year, an unified fiscal accounting report
       regarding the paid incomes and the tax income withheld from the payment source.

   (8) By derogation from the provisions of the paragraph (3), the individual entrepreneur, farmer’s
       household, of which annual average number of employees, during the fiscal period, does not
       exceed 3 persons and which are not registered as VAT payers, shall submit, but not later than 31
       of March of the year following the fiscal reporting year, the unified fiscal accounting report
       stipulated in the paragraph (3).

T I T L E III
VALUE ADDED TAX
(supplemented by Law No. 1415-XIII of December 17, 1997)
Chapter 1
GENERAL PROVISIONS



Article 93. Terms of general application

For the purpose of this Title following terms shall be applied:

(1) Value added tax (hereinafter called VAT) mean s a state tax in the form of payment to the budget of
a proportion of the value of all supplied goods and performed services taxable in the territory of the
Republic of Moldova, as well as of a proportion of the value of all taxable imports of goods and services
into the Republic of Moldova.
[Para. 1 modified by Law No. 1064-XIV from 16.06.2000].
(2) Goods (material values) are the products of labor in the form of manufactured articles, including
goods for consumption and production for technical-economic purposes, buildings, constructions and
other types of real estate property, intangible assets.
(3) Supplies of goods are the transfer of ownership rights on goods, including sale, exchange, gratuitous
transfer, transfer with partial payment, wages payment in the in-kind form, other in-kind payments, and
transfer of pledged goods into the property of the holder in pledge.
(4) Supplies (rendering) of services are supplies of tangible and intangible consumption and production
services, including renting property, transfer of rights, leasing rights inclusive, to use any goods which
are made for a consideration, partially paid or gratuitous; construction and assembly, repair, research and
development, experimental and design work or other types of works done for the consideration, partially
paid or free.
(5) Partial payment – the incomplete fulfillment by the buyer of his obligations towards the supplier.
[Para. 5 introduced by Law No. 697-XV from 30.11.2001]
(6) Taxable supplies are the supply of goods, services other than supplies of services and goods that are
exempt from VAT, made by a subject of taxation during the entrepreneurial activity.
(7) Goods for personal use or consumption are the goods, property used to meet the demands of the
owner and /or members of his family.
(8) Import of goods means the entry of goods into the territory of the Republic of Moldova in
accordance with Customs legislation.
(9) Import of services means services rendered by the non-resident legal entities and physical persons of
the Republic of Moldova to the resident or non-resident legal entities and physical persons of the
Republic of Moldova, for whom the place of rendering services is considered the Republic of Moldova.
[Para. 9 modified by Law No. 697-XV from 30.11.2001]
(10) Export of goods means the removal of goods from the territory of the Republic of Moldova in
accordance with Customs legislation.
(11) Export of services means services rendered by legal and physical persons residents of the Republic
of Moldova, who are engaged in entrepreneurial activity in the territory of the Republic of Moldova to
legal and physical persons outside the Republic of Moldova.
[Para. 11 modified by Law No. 112-XIV from 29.07.1998].
(12) Specific relations means special relations inherent and applied to a certain subject or
circumstances, other than relations inherent to the similar subjects or circumstances. [Para. 12 in the
redaction of the Law No. 1064-XIV from 16.06.2000].
(13) Zero Rate means a VAT rate of 0%.
(14) Agent is a subject who is acting on behalf of another subject but is not his employee.
[Para. 14 completed by Law No. 732-XV from 13.12.2001]
(15) The place of delivery of goods, services – the place of delivery determined according to the rules
provided in art. 110 and 111.
[Para. 15 introduced by Law No. 697-XV from 30.11.2001].
(16) Fiscal invoice – a type-formulary of primary document with a special regime, presented to the buyer
by the taxable subject, registered in the determined way, at the realization of the taxable works.

Chapter 2
SUBJECTS AND OBJECTS OF TAXATION


Article 94. Subjects of taxation

Following are the subjects of taxation:
a) legal and physical persons who are or are required to be registered for VAT in accordance with
Article 112 or 112¹;
b) legal and physical persons who import goods into the Republic of Moldova, except for physical
persons who import goods for personal use or consumption, the value of which does not exceed the
threshold stipulated by the Law on Budget for the respective year;
c) legal and physical persons who import services, regardless if they are registered or not in accordance
with the art. 112 or 112¹.

Article 95. Objects of taxation

Following are the objects of taxation:
a) supplies of goods and services made by a subject of taxation in the course of business in the Republic
of Moldova;
b) imports of goods into the Republic of Moldova, except for goods imported by physical persons for
personal use or consumption, the value of which does not exceed the threshold stipulated by the law in
force.
c) import of services in the Republic of Moldova, except for the services related to compensatory
products resulted from the passive improvement regime.

Chapter 3
CALCULATION OF TAX DUE


Article 96. Rates of tax

(1) Following shall be the VAT rates:
a) the standard rate of 20% of the taxable value of imported goods, services and supplies in the territory
of the Republic of Moldova;
b) reduces rates in the amount of :
- 8% on bread and bakery products (190110000, 190120000, 190540, 190590300, 190590600,
190590900), milk and diary products (0401, 0402, 0403, 0405, 040610200) brought into the Republic of
Moldova, except the food products for children that are VAT exempt in accordance with art. 103 para.
(1), item 2);

-8% - on medicine, indicated in the state Nomenclature of medicine, as well as authorized by the
Ministry of Health, imported and/or delivered on the territory of the Republic of Moldova, as well as
medicine delivered on the territory of the Republic of Moldova prepared in pharmacies according to the
main prescriptions with authorized contents of ingredients (medical substances).

-8% -on goods, imported and/or delivered on the territory of the Republic of Moldova, from the tariff
positions 3005, 300610, 300620000, 300630000, 300640000, 300660, 300670000, 370790, 380894,
382100000, 382200000, 4014, 4015, 481890, 900110900, 900130000, 900140, 900150, 901831, 901832,
901839000;

- 5% on natural and liquefied gas imported and delivered on the territory of the Republic of Moldova

c) zero rate imposed on goods and services imported under the Article 104.

Article 97. Taxable value of taxable supplies

(1) The taxable value of a taxable supply is the value of the supply paid or payable for that supply (less
the VAT payable on the supply).
(2) If the payment for delivery in, partially or wholly, paid in kind, the taxable value of the taxable
supply is its market value which is determined in accordance with art. 5 paragraph. 26) and art. 99.
(3) The taxable value of a taxable supply includes the total of all fees, taxes, duties and levies payable
on the supply, except for the VAT payable on the supply.
(31) In case of applying indirect methods and sources of estimating the fiscal obligation, the taxable value
of the taxable delivery shall be considered the value estimated in accordance with the art. 225.

(4)The taxable value of the taxable goods (services), performed by a taxation subject, can not be smaller
than the expenditures for their production or the price of purchase of the goods, or than the customs value
of the imported goods, determined according to the art.100, or than the cost price of the rendered
services, except for the cases when the goods has lost its consume qualities, given that this fact is
confirmed by the bodies and services entitled with such functions. The provisions of the present article
shall not refer to the cases when the delivery of goods and services for which for which the prices are set
(regulated) by the state, as well as in case of selling of the goods of the debtor at an auction, in the
account of liquidation of their arrears.
(5) the taxable value of the taxable delivery of the actives that are due to attrition represent the largest
value from their balance value and their market value.


Article 98. Adjustments to the taxable value of taxable supplies

The taxable value of a taxable supply of goods and services shall be adjusted after the supply is made and
the consideration for the supply is paid, and it is documentary confirmed, if:
a) the value of the supply has changed because of a change in the price;
b) the supply has been returned to the subject of taxation, who made the supply, wholly or in part;
c) the taxable value of a taxable supply is reduced because of discount given for a prompt payment.


Article 99. Supplies made for less than their market value, free of charge, in lieu of wages

(1) Where a supply is made for less than the market value because of a special relationship between the
supplier and his customer, or because the customer is an employee of the supplier, the supply shall be
taxable, and the taxable value of the supply shall be its market value.
(2) Where the goods or services have been supplied to a subject of taxation for the purpose of his
entrepreneurial activity, the goods of captive production which consequently are transferred free of
charge to any employee of the subject of taxation, and services provided free of charge to any employee
of the taxable subject shall be treated as a taxable supply. The taxable value of this supply shall be its
market value.
(3) Where goods, services have been supplied to a subject of taxation for the purpose of his
entrepreneurial activity, which subsequently are appropriated by this subject or transferred to members of
his family shall be treated as a taxable supply of this subject. The taxable value of the supply of goods,
services shall be the price paid by the subject for the supply, purchased for the purpose of entrepreneurial
activity, and in case of goods of captive production - their market value.
[Para. 3 art. 99 in the redaction of the Law No. 1064-XIV from 16.06.2000].
(4) Goods, services supplied to a subject of taxation for the purposes of his entrepreneurial activity,
which consequently are transferred to other persons shall be treated as a taxable supply made by this
subject. The taxable value of this supply shall be the price paid by this subject of taxation for the supply
to be used for his entrepreneurial activity.
[Para. 4 art. 99 modified by Law No. 646-XV from 16.11.2001].
(5) Where goods, services have been supplied to a subject of taxation for the purpose of his
entrepreneurial activity, goods of captive production, services rendered in lieu of wages of employees of
the subject of taxation, shall be treated as a taxable supply. The taxable value of the supply shall be its
market value.
(6) The market value of the taxable supply shall not be less than its actual cost. The taxable value of a
taxable supply of wasting assets shall be the biggest amount of its book and market values.

Article 100. Taxable value of imported goods

(1) The taxable value of imported goods shall be the customs value of the goods determined in
accordance with the Customs legislation, as well as fees, duties, taxes or levies payable on importation of
these goods except for the VAT.
[Para. 1 art. 100 modified by Law No. 1064-XIV from 16.06.2000].
(2) Where there is lack of documentary evidence to support the value of imported goods, or where the
importer underestimates the value of imported goods, the taxable value of goods shall be determined by
the Customs authorities in the manner prescribed in sub-article (l) of this article and in accordance with
he rights granted to these authorities by the legislation.

Article 101. Computation and payment of VAT

(1) Subjects of taxation, as defined in Article 94(a), shall declare in accordance with Article 115 and pay
the amount of VAT due to the Budget for each tax period according to article 114, which represents the
difference between the amount of tax payable by the customers for the supplies (goods, services) made,
and the amount of tax payable to the suppliers at the moment the supplies (goods, services) are received
(including tax payable on imported supplies) for the purpose of conducting entrepreneurial activity
during this period, including the eligibility for tax credit under Article 102.
[Para. 1 art. 101 completed by Law No. 697-XV from 30.11.2001].
(2) If the VAT amount paid or that has to be paid to the supplier for the purchase of material goods,
services exceeds the amount of VAT received or receivable from consumers for the goods, services
delivered, the difference shall be carried forward for the next tax period and becomes part of the VAT
payable for the material goods, services purchased that period, except for cases provided for in para. (3),
(5) and (6).
[Para. 2 art. 101 completed by Law No. 697-XV from 30.11.2001]
(3) If the VAT amount for material goods and services purchased by the enterprises producing bread and
bakery products and enterprises processing and producing diary products exceeds the VAT amount for
deliveries of bread, bakery products, milk and diary products, the difference is reimbursed from the
budget in the limits of the VAT standard-quota, multiplied with the value of delivery that is taxable at a
reduced quota. VAT is reimbursed in the manner established by the Government, in a period that will not
exceed 45 days.
[Para. 3 art. 101 completed by Law No. 697-XV from 30.11.2001]
(4) The subjects of taxation, that are importing services to conduct business, except for imported
services related to compensatory products resulted from the passive improvement regime, shall pay VAT
at the moment the payment is made for the imported service.
[Para. 4 art. 101 modified by Law No. 697-XV from 30.11.2001]
(5) If the excess of VAT amount for material goods and services purchased is due to the fact that the
subject of taxation has made a delivery taxed at zero-rate, he is entitled to a refund of the excess VAT
amount for the material goods, services purchased that is paid or payable through or in the settlement
account in accordance with the present article, with art 103 line (3) and of art 125, in the limit of the
VAT standard rate multiplied by the value of the zero-rate supplies. The restitution of the VAT shall be
done in the manner established by the Government, within a term that does not surpass 45 days. The
restitution of the VAT shall be done to the account of liquidation of the debts of the economic agents (or
of their creditors) towards the state budget, except the fiscal obligations administered by the customs
bodies, but in case of absence of debts – to the banking account of the economic agent.
 (6) If the VAT sum t for the material values and/or services procured by the enterprises which carry out
leasing activity exceed the VAT sum at the deliveries of goods and services performed within the
framework of the financial and/or operational leasing contracts, the difference is reimbursed from the
budget within the limits of the standard quota of VAT multiplied by the value of these deliveries of
goods and services. VAT is reimbursed in the manner established by the Government, within a term that
will not exceed 45 days.
     (6) The legal and natural persons that import goods for developing an entrepreneurship activity shall
         pay the VAT tax until or at the moment of presentation of the customs declaration, meaning until
         the moment of their introduction into the territory of Moldova. Natural persons who import
         household goods or goods for personal consumption, and whose value surpasses the threshold set
         by the legislation in force, shall pay for the VAT in the moment of the customs control of the
         luggage and only in the measure in which the value surpasses the set threshold.
Article 101¹. Reimbursement of VAT regarding the capital investments (expenditures), except
for the investments for dwelling purpose and investments in transport means

(1) The provisions of the present article extend over the subjects subject to taxation who make capital
investments (expenses) in the republic’s localities, except municipalities Chisinau and Balti, except
for the investments with dwelling purpose and investments in transport means.

(2) The subjects, stipulated in the paragraph (1), who have an exceeding of the VAT sum which is
paid or is going to be paid to the supplier at procurement of material values, services against the VAT
sum paid or which is going to be paid by the buyers for the goods and services delivered to them have
the right for reimbursement of this exceeding. The sum subject to reimbursement cannot be more
than the VAT sum paid for the material values, services related to capital investments (expenses)
made according to the paragraph (1). VAT is returned to the subjects who made capital investments
(expenses) in cities and in Comrat municipality in case when the exceeding of VAT sum for a fiscal
period, determined according to the present paragraph, is more than 100 000 lei.

(3) Taxable subjects registered as VAT taxpayers in accordance with the art.112¹ have the right for
reimbursement of VAT sum paid to the suppliers of material values, services related to the performed
capital investments (expenses), which constituted a ground for subject registration as VAT payer.

(4) VAT reimbursement according to the present article is made within 45 days from submission date
of the request, in the manner set by the Government. The right for VAT reimbursement is made on
the account of covering debts of the economic agents (or their creditors) towards the national public
budget, except for the fiscal obligations administered by the customs bodies, but in the absence of
debts, reimbursement is made to the bank account of the enterprise.

Article 102. Input tax credit (credit for VAT paid on supplies of goods, services received -
transl.)

(1) When paying VAT to the Budget, according to art. 112 and 112¹, subjects or taxation are allowed
to credit the amount of VAT paid or payable to suppliers on acquired goods, services to be used for
the purpose of making taxable supplies in the course of business, except for imported services. The
VAT amount paid by the subjects of taxation for the imported services is considered as expenditure.
It is allowed to credit the VAT for the imported services, acquired by the subjects of taxation for the
taxable supplies in the process of the entrepreneurship activity, when paying VAT to the Budget
under Article 115, only for paying VAT for the services mentioned. The taxation subjects, registered
in accordance with art 112 and 112¹, shall be allowed for the transfer into account of the VAT sum
paid or which is due to be paid to the suppliers, VAT payers, related to the expenses performed
before the moment of their registration and related to the purchase of fix means, with the aim of
production in agriculture, related to the construction and reconstruction of objects of production
destination in agriculture, to the creation and maintenance of young plantations, to growing of young
animals and maintenance of herds.
[Para. 1 art. 102 modified by Law No. 697-XV from 30.11.2002]
(2) The amount of VAT paid or payable on inputs (goods or services received) to be used for the
purpose of making supplies which are exempt from VAT is not subject to credit and shall be included
into the expenses or consumption category. The respective provisions do not extend over the
deliveries performed in accordance with art. 103 line (1), point 23).
[Para. 2 art. 102 modified by Law No. 1064-XIV from 16.06.2000].
(3) The amount of VAT paid or payable on inputs (goods or services received - transl.) to be used for
the purpose of making both taxable and exempt supplies is subject to credit if the taxable value of
taxable supplies made by the subject of taxation exceeds 50% of the value of all supplies and separate
accounting of taxable and exempt supplies is provided by the subject of taxation.
    The size of transfer into the account of the VAT shall be determined monthly through the application
    of the pro-rata compared to the VAT sum, paid to be paid, for material values, services purchased
    that are used for the performance of supplies, both taxable and exempted from VAT. The pro-rata
    shall be determined via the application of the following proportion:
  a. the value of the taxable supplies (without VAT) shall be stated at the numerator, except for the
         prepayments received, for whose performing the material values are used, the respective services;
  b.on the other half shall be stated the total value of the taxable supplies(without VAT) and of the
    supplies exempted, except for the prepayments received for whose performance the material values,
    and services are used;
The final pro-rata shall be determined I the way described above when filling in the VAT declaration for
the last fiscal period of the respective year and shall be based on the annual indicators of supplies. The
difference between the VAT transferred into the account in the previous fiscal periods and the VAT sum
determined as result of application of the final pro-rata shall be reflected in the declaration for the last
period of the fiscal year.
(4) The amount of VAT paid or payable on inputs (goods or services received) to be used for purposes
other than business purposes, as well as inputs (goods, services received) which in the course of business
were stolen or represent excess losses as prescribed by the legislation, is not subject to credit and shall be
reflected in the expenses statement.

(5) The amount of VAT paid or payable on inputs (goods or services received) in respect of a supply of
entertainment, which is not part of the taxable subject’s business, is not subject to credit and shall be
included into the production costs. Subjects of taxation who are engaged in entrepreneurial activity in
the area of entertainment and recreation, and who use the inputs (received goods, services). In the course
of business, shall be entitled to VAT credit on such supplies.
(6) A subject of taxation is entitled to credit the VAT paid or payable on acquired material goods,
services if he/she has the following:
a) a VAT invoice for acquired goods, services on which VAT was paid or payable, or
b) a document issued by the customs authorities certifying that VAT has been paid on imported goods,
or
c) a document certifying the payment of the VAT for the imported services.

(7) The delivery, for which input tax credit for VAT paid or payable on material goods and services
acquired, is allowed, must be made to the subject of taxation by the supplier who issued the VAT
invoice, which he has obtained from the authorized body in an established manner, or must be imported
by the subject of taxation.

(8) At the delivery of goods, services for export, including all types of international passenger and cargo
transportation, a VAT refund for material goods and services acquired shall be allowed provided that:
a) the customs authority confirms the supply is made for export,
b) copied of the international transport documents that confirm the receipt of the exported goods;
c) international transport documents that confirm the render of services – for the international goods’
transport services;
d) route sheet, sheet of evidence of the tickets, control tally, navigation assignment (depending on the
type of transport) – for international passenger services;
e) confirmation of the postal body regarding the receipt of the goods;
f) confirmation of the foreign recipient – in case of other services, and I the case of services granted
through electronic means – the confirmation via a digital signature or written when the services are
rendered and confirmation of receipt of payments for the respective services (if these took place) or the
information related to the monetary means cashed through the means of international payments systems
through cards, presented to the bank, on the basis of which the identification of the foreign recipient shall
be possible.
(9) The VAT amount paid or which shall be paid for the ethylic alcohol purchased and used in medicine,
shall be credited.


Chapter 4
SUPPLIES EXEMPTED FROM VAT

Article 103. Exemptions from VAT

(1) VAT is not applied to the import of goods and services, and supplies of goods and services made by
the subjects of taxation in the course of their entrepreneurship activity in the Republic of Moldova:
[Para. 1 art. 103 modified by Law No. 1389-XIV from 30.11.2000].
1) dwelling place, land and their rent, the right for their delivery and lease, except for commissions from
the respective transactions;
2) groceries and non-groceries for children goods from the (tariff positions 040229110, 190110000, ,
490300000, as well as food products for children from the tariff positions 16021000, 20051000,
20071010. 20071091, 200710990;
3) the state property bought out by reason of privatization;
4) kindergartens, clubs, sanatorium, and other premises of social, cultural and condominium purposes,
as well as roads, electrical lines and substations, gas supply systems, water pumping constructions and
other similar objects, transferred gratuitously to the central and local governments (or under their
resolution to specialized enterprises, which use such objects solely for their purpose), as well as objects
transferred gratuitously to enterprises, organizations, institutions by the central and local governments;
the property transferred gratuitously, at the decision of the public authorities from one state enterprise to
another state enterprise or for one municipal enterprise to another municipal enterprise; technical
expertise works, prospects, projecting construction and restoration, by attracting monetary means
donated by the natural and legal person, at objects included by the list approved by the Parliament;
5) goods, services by the educational institutions related to instructive, production (for educational
purposes) and educational process, on condition that they allocate funds raised from the supply of such
goods and services, for educational purposes; personnel training services and services related to the
improvement of professional skills; services for training children and teenagers in study circles, studios;
services to children and teenagers for the use of gymnasiums; services provided by nursery and
kindergartens;
6) services (actions) performed by the authorized bodies, for which a state duty is charged; all types of
activities related to taxes and fees collected by the state for issuing licenses, registration and patents, as
well as fees and duties levied by the central and local governments; services rendered by lawyers and
notaries, services registered in the registry of the immovable goods and issue of extracts from this
register.
7) services in connection with patent and licensing transactions (except for those where a third
party/mediator is involved) related to the industrial property, as well as to obtaining copyright;
8) seized property, property in abeyance, property which was legally transferred to the government
under the patrimonial rights, property of entities in process of insolvency, treasures.
9) services provided for treating ill and elderly persons, as well as goods for packages to be gratuitously
transferred to poor elderly persons by charitable organizations.
10) medical services, except cosmetic services; medicine included in the State Ledger of Medicines and
approved by the Moldovan Ministry of Health, as well as medical raw material and other materials used
for the production of medicine approved by the Ministry of Health, except for cosmetics; medical items,
prosthetic and orthopedic appliances and medical equipment; vouchers to resort and health care houses,
and vacation houses, tourist and excursion vouchers, except for the cost of intermediary services related
to obtaining such vouchers; supply of technical means including means of motor transport, which can be
used solely for the purpose of preventing and rehabilitation measures for the disabled;
11) goods produced by the university and school canteens, by canteens of other educational institutions,
hospitals, nursery schools, as well as by the canteens of other organizations and institutions of social and
cultural sphere, partially or totally financed from the budget, as well as canteens solely providing catering
services to poor elderly persons at the expense of charitable organizations.
12) financial services:
a) granting, negotiating and dealing with credit, credit guarantees and any security for money
transactions and crediting, including management of loans, credits or credit guarantees by the grantor
(credit, remittance, trustee operations, cash calculation, investigation of amounts not credited to the
accounts, opening and re-registration of accounts);
b) transactions related to bank deposit and current accounts, including savings accounts, settlement and
budgetary accounts, transfers, debts, checks and other financial instruments, except for proceeds from the
forced sale of goods in default of loan repayments, information, consulting and expert services,
acquisition and rent of broker's places at a stock exchange, letting out on lease including leasing in
financial activity, services of collection, storage and delivery of cash, securities, documents, fees from
trustee operations on the management of the customer's property, liquidation of property of bankrupt
entities, providing customers with regulatory documents organizations.
c) transactions related to currency, money, bank notes which constitute a legal instrument of payment
(except for collector's items), goods from the tariff position 7108, delivered to the National Bank of
Moldova;
d) transaction related to the issue of shares, stocks, bonds and other stocks and shares, including
commercial and commission activity on the securities markets, and activity of independent registrars;
e) transactions, related to derivative financial instruments, with forward agreements, with options and
other financial operations;
f) services related to management of investment funds and qualified non-state pension funds
organizations.
g) insurance and re-insurance services, except for insurance intermediary services organizations.


13) The postal offices services, including services of delivery of pensions, subsidies and allowances;

14) Services in connection to gambling rendered by entrepreneurs engaged in gambling business
(including the use of gaming machines), except for the services the payment for which is partially or
wholly included in the stake or entrance fee, and other incidental services provided to players or to
spectators; lotteries.
15) Funeral services provided by funeral homes, interment and crematorium services, ceremonies by
religious organizations.
16) Accommodation in hostels: communal services for the general public: rental of dwelling space,
technical services for housing blocks, water supply, drainage, heating, sanitation, use of the elevator.
17) Services rendered by the public urban transportation, by the suburban and interurban auto, fluvial,
railway passenger transportation, as well as services of commercialization of tickets for public urban
transportation, suburban and interurban auto, railway and fluvial passenger transportation
18) Electric power imported and supplied through the distributive network, or imported by the
distributive networks, except for the services on transportation of such imported electric power;

19) services related to the confirmation on rights on land ownership.

20) books and periodicals in the sphere of culture, religion, education, science and polygraph printing of
books and periodicals in the spheres mentioned above (except for the advertising and erotic editions).
21) imported excise stamps for identification of goods subjected to excise;

22) services delivered by the agricultural cooperatives that render services, created in accordance with
art. 87 of Law No. 73-15 from April 12, 2001 on consumption cooperatives, the members of this
cooperative, provided that at least 75% of the total value of the goods and services delivered to the
members of the cooperative and the value of the goods supplied to the cooperative by its members.

23) Material assets the value of which surpasses 3000 lei per unit and the operation term of which
surpasses one year, meant for introduction in the statutory capital (social) in the manner and terms set by
the legislation. The manner of application of the respective tax facilities is set by the regulation approved
by the Government;

25) Cars and other vehicles (tariff positions 870321, 870322, 870323, 870324, 870331, 870332, 870333);

26) goods and services financed from the account of the loans and grants given to the Government or
granted with state guarantee, from the account of the loans granted by the international financial
organizations (including from the share-part of the Government), aimed at the realization of respective
projects, as well as from the account of grants granted to institutions that are financed from the budget,
according to the list approved by the Governments;

27) services of the organizations from the science and innovation field accredited by the National
Council of Accreditation and Attestation. The exemption will be granted starting with the fiscal period
when the organization from the science and innovation field has been accredited by the National Council
for Accreditation and Attestation. In case of withdrawal of the accreditation certificate, the organization
will be deprived from the exception right starting with the fiscal period when the accreditation certificate
has been withdrawn.

28) services of the organizations in the field of science and innovation that fall under article 49/1

(2) VAT shall not be applied to:
a) goods imported to the Customs territory and premises under the Customs transit regimes, Customs
warehouses, processed under the Customs control, free customs warehouse, destroyed and rejected in
favor of the State;
b) domestic goods previously exported and reintroduced, within 3 years, in the same estate;
c) goods under the Customs regime of temporary permission, and compensatory products after passive
improvement, according to the customs regulations.

(3) The goods placed under customs regime of active improvement, except for goods due to excise
stamps, cattle meet, fresh or refrigerated (tariff position 0201), frozen cattle meat (tariff position 0202),
pork meat, fresh, refrigerated or frozen (tariff position 0203),sheep or oak meat, fresh, refrigerated or
frozen (tariff position 0204), comestible organs of cattle, pork, oak, sheep, horses, donkeys, fresh,
refrigerated or frozen (tariff position 0206), meat and comestible organs of birds from tariff position
0105, fresh, refrigerated or frozen (tariff position 0207), bacon without meat, pork and bird fat, non-
melted, and not otherwise extracted, fresh, refrigerated or frozen, salted, dried or smoked (tariff position
0209 00), milk and sour cream made of milk, concentrated or sugar added or other sweeteners (tariff
position 0402), potato components (tariff position 1108 13 000), animal grease from cattle, oak or sheep,
other than those from the tariff position 1503 (tariff position 1502 00) and brut sugar made of sugar reed
(tariff position 1701 11) shall not be applied VAT.

VAT paid for the goods placed under the customs regime of active improvement, to which VAT apply,
shall be returned, in accordance with the procedure set by the Customs Service within 30 days.
(4) VAT paid for foreign goods that are take out from the customs territory, placed under the Customs
regime of re-export shall be refunded upon their taking out from the customs territory. VAT is restituted
in accordance with the instructions of the Customs Service, in a period of time that does not exceed 5
days.

(5) There shall be no VAT imposed on import of goods, services intended for providing assistance by
reason of natural calamities, armed conflicts and extraordinary incidents as well as goods treated as
humanitarian assistance in accordance with the rules established by the Government.

(6) No VAT shall be imposed upon placement and commercialization of goods in duty-free shops

(7) No VAT shall be imposed on raw materials, associated items and accessories imported by the
Associations of Blind and Deaf, and Association of Invalids for the production purposes.

(8) No VAT shall be imposed on goods produced by the invalids at the health care-production workshops
within the psychiatric hospitals of the Ministry of Health.

(9)The goods supplies performed within the free economic zone are supplies exempted from VAT

(9¹) VAT shall not be imposed upon the goods and services imported by the residents of scientific-
technological parks and residents of the innovation incubators, as well as upon goods and services
purchased by them on the territory of the Republic of Moldova. The procedure of application of the
exemption is set by the Government. In the event that scientific-technological parks, innovation
incubators cease their activity, or lose their resident status, VAT shall be imposed upon the initial value
of stocks of goods unused during the activity of the residents.

(10) VAT shall not apply to goods imported by legal persons in non-commercial aims if the value at
customs of these goods does not surpass the sum of 50 Euro. In case when the value in custom of the
goods surpasses the stated non-taxable limit, the VAT shall be calculated starting from their value at
custom, and the mentioned non-taxable limit does not decrease their taxable value.

(11) The income in form of interest rate obtained by the tenant on the basis of a financial leasing contract
is not taxable with VAT.


Chapter 5
VAT IMPOSED AT ZERO RATE

Article 104. Zero-rated supplies

The following supplies are zero-rated:

a) goods, services for export, and all kinds of international passenger and freight transportation
(excluding expedition), as well as the services of the aerodrome operator (airport), of commercialization
of travel tickets in the international air, auto, railway and fluvial traffic, of serving on the ground of the
airships of aeronautical security and air navigation, related to the airships in international traffic;

b) electric power supplied to the general public through the producing enterprises, distribution network,
as well as the heating power and hot water supplied to the general public by the power-and-heating
entities, boilers, thermal electric generation stations, block stations;

c) import and/or supply of goods, services designated for the official use of diplomatic and other similar
establishments in the Republic of Moldova, as well as for personal use or consumption by the members
of diplomatic, administrative and technical personnel of these establishments and by the members of
their families living with them, on a mutual basis, as well as those aimed for the official use of other
missions located in Moldova and the personal use or consumption by the members of the diplomatic and
administrative-technical staff of these missions and the members of their families that live together with
them. The way of application of the zero rate of the VAT is provided by the Government.

c¹) import and/or delivery on the territory of the country of goods and services meant for technical
assistance projects, implemented in the Republic of Moldova by the international organizations and
donor countries within the treaties to which Moldova is arty, according to the list approved by the
Government. The list of international treaties to which Moldova is party and of the technical assistance
projects, as well as the manner of application of the 0 rate of VAT at the delivery of goods and services
meant for technical assistance projects are set by the Government.

d) import and/or supply of goods, services aimed for projects of technical assistance, realized on the
territory of Moldova by the international organizations and donor countries in the limit of the treaties to
which this is a part to. The list of international treaties the Republic of Moldova is party and of the
technical assistance projects, as well as the manner of application of the zero-rate VAT at the delivery on
the territory of the country of goods and services meant for technical assistance projects are established
by the Government.
e) –is excluded
f)goods, services supplied to the free economic zone outside the customs territory of Moldova, delivered
from the free economic zone outside the customs territory of Moldova, delivered into the free economic
zone from the rest of the customs territory of Moldova, as well as those delivered by the residents of
different free economic zone of Moldova;
g) services rendered by the enterprises of light industry on the territory of Moldova within the contracts
of processing in the customs regime of active improvement. The list of the economic agents, type of
services that fall under the category of the present point, as well as the way of administration of these
services shall be set out by the government;
h) goods delivered in the duty-free shops.




Chapter 6
SUPPLIES


Article 105. Supplies of goods, services
              (1) A supply of electrical energy, heating or gas is a supply of goods.
              (2) A supply of services that is made as a subsidiary supply to a supply of goods, is a part
              of the supply of goods.
              (3) A supply of services that is made as a subsidiary supply to an export of goods, is part
              of the export of the goods.
              (4) A supply of goods that is made as a subsidiary supply to a supply of services is part of
              the supply of services.

Article 106. Supplies by agents and employees
              (1) A supply of goods or services made by an agent on behalf of a subject of taxation is a
               supply by the subject of taxation.
               (2) Sub-article (1) of this article does not apply to the supply of the services of the agent
               to the subject of taxation.
               (3) A supply of services by an employee to his employer (within the limits of his official
               duties) is not a taxable supply by the employee.


Article 107. Transfer of a right to conduct business

Transfer of a right to conduct business or part of a business by a subject of taxation to another subject of
taxation, is not a taxable supply of goods, services if:
                a) the transferee is or becomes a taxable subject in respect of the business or a part of the
                business that is transferred immediately on the date of transfer;
                b) the transferee continues the business after the transfer.

Chapter 7
DATE OF TAX LIABILITY

Article 108. Date of tax liability

(1) The date of tax liability is the date when the supply is considered to have been made. The date of
supply is the date when the goods are released, services are rendered, except for the cases under sub-
articles (5) and (6).
(2) For goods, the date of supply is the date when the goods are released (passed) to the consumer, or, if
transportation is involved, it is the date when the transportation starts unless the goods are exported in
which case it is the date when the goods leave the territory of the Republic of Moldova.
(3) In case of the supply of immovable property, or in case of construction of buildings on the
consumer's site, the date of supply is the date when the immovable property, constructed building is
made available to the consumer.
(4) For services, the date of supply is the date the service is rendered, the VAT invoice is issued or
when a full payment or part payment is made to the subject of taxation, whichever is the earlier.

(5) If a VAT invoice is issued or if a payment is received before the date of supply, the date of supply is
the date of issue of the VAT invoice or the date of receipt of the payment, whichever is earlier.

(6)   If goods or services are supplied on a continuing basis within the period, stipulated by the contract
(agreement), the date of supply is the date of issue of the VAT invoice or the date of receipt of each
periodic payment, whichever is earlier.

(7) In case of supply of goods and services within a leasing contract (financial or operational), the date of
supply shall be considered the date specified in the contract for the payment of the leasing rate. In case of
cashing in of the leasing rate in advance, the date of supply shall be considered the date of cashing the
advance payment.



Article 109. Date of tax liability on import
(1) For imports of goods, used in the course of business, the date of tax liability shall be the date the
goods are declared at the boarder Customs offices. And the date of payment shall be the date the amount
is actually paid by the importer (declarant) or by the third person to the Customs body or deposited to the
respective accounts of the Central Treasury of the Ministry of Finance the fact of deposit of which is
confirmed by the bank statement. In the case of imported services used in the course of business, the
date of fulfillment of tax liabilities and the date of VAT payment shall be the date the payment is made
for the imported service.
(2) Any import of goods takes place when the importer complies with all requirements on import of
goods into the territory of the Republic of Moldova under the Customs Law, and when goods become
liable to customs duty. In case imported goods are exempt from the customs duty, the goods are
considered to be imported as they would have become liable to customs duty adhering all appropriate
procedures applicable to imported goods under the Customs legislation.

(3) for the leasing operations (financial or operational) contracted with a supplier based abroad, the term
of the fiscal obligation shall be considered the date specified in the contract for the payment f the leasing
rate. In case of performance of the payment in advance of the leasing rate, the date of the fiscal obligation
shall be considered the date of performance of the payment.


Chapter 8
PLACE OF SUPPLY

Article 110. Place of supply of goods

(1) A supply of goods takes place where the goods are on the date when they are released (passed) to
the customer, or when they are made available to the customer. If the goods are to be transported by the
customer or by the transportation organization, a place of supply is the place where the goods are when
the transportation starts except for supplies for export.
(2) A place of supply of electrical energy, heating, or gas is the place where the supply is received.

Article 111. Place of supply of services

(1) A supply of services takes place:
a) at the location of the real estate property, if services provided are directly related to this property;
b) where the services are actually rendered, if they are related to movable property or to persons;
c) where the services are actually rendered:
- related to movable tangible goods
- in the sphere of culture, art, education, physical training or sport, or in the similar field of activity;
- related to auxiliary activities of transport, such as load, unload, replacement;
d) the place of use and possession of the service – when giving for rent of tangible movable goods;
e) siege, and in the lack of it – the domicile or residence of the beneficiary of the following services:
- transmission of author rights, patents, licenses, product and service brands, as well as of other industrial
property objects;
- advertising services;
- services rendered by consultancies, engineers, consultancy offices, lawyers, accountants and other
similar services as well as services of delivery of information;
- services related to computes and related activities, granted through the electronic means, in accordance
with the 72nd subsection of the Classifier of activities of Moldovan economy as of 28 June 1994,
approved by the Decision of the Moldova Standard Department, nr. 694-ST as of 9th February 2000;
- services of employment and personnel supply (provision of personnel);
- services of the agencies that activate in the name and on behalf of other persons – for the services
enumerated at the present point.
f) the destination place of the goods, sent after processing - at processing of foreign goods on the
customs territory.
(2) The place of delivery of services that have not been enumerated at line (1) shall be considered the
siege of the person that renders services, and in case in which such a place lacks – the domicile or
residence of the latter.

Chapter 9
ADMINISTRATION OF VAT

Article 112. Registration of subjects of taxation

(1) A subject conducting business, except for the government bodies, public agencies under Article 51,
private and public sanitary-medical institutions specified in the art. 51¹, and the holders of business
patents, is required to be registered as VAT payer, if he has made supplies of goods, services, other than
those which are exempt under article 103, the total value of which exceeded 300,000 lei within the period
of any 12 consecutive months. The subject of taxation shall notify the State Tax Service on an
appropriate form of his requirement to be registered within one month of the end of the period during
which the limit was exceeded under this sub-article. The registration shall take effect on the first day of
the month following the month when the official notification was presented.

(2) The subject that carries out entrepreneurial activity has the right to register as VAT payer if he
performed, in any period of 12 consecutive months, taxable deliveries of goods, services (except the
import ones) in the amount that exceeds 100 000 lei, provided that payment for these deliveries is
performed by buyers in form of bank transfer settlements to the bank accounts of the subject of
entrepreneurial activity, opened in the financial institutions which have tax relations with the budgetary
system of the Republic of Moldova. The subject is considered registered from the first day of the month
following the month in which the exceeding of the ceiling took place, about which the State Tax Service
has been notified officially, by filling out the respective application.

(3) Upon registering a subject for VAT the State Tax Service is required to issue a certificate of
registration in the established manner, which states:
a) the name (trade name) and legal address of the subject of taxation,
b) the registration date,
c) the tax identification number of the subject of taxation.

(4) A subject who benefits from import services whose added value of the goods supply, services,
performed in the last 12 consecutive months exceeds 300,000 lei is obliged to register as VAT taxpayer
in the way provided by line (1).

Article 112¹ Registration of the taxable subjects who carried out capital investments (expenses),
except for investments made for dwelling purpose and investments in transport means

(1) Subject who carries out entrepreneurial activity has the right to register as VAT payer, if the VAT
sum paid by him for the material values, procured services related to capital investments (expenses)
made starting with January 1st, 2008 in the republic’s localities, outside Chisinau and Balti
municipalities, except for investments made with dwelling purpose and investments in transport meant,
constitutes:
a) for cities and Comrat municipality - from 100000 lei;
b) for villages (communes) – from 1 lei.:

(2) For registration as VAT payer, according to the art. (1), the subject of the entrepreneurial activity
shall inform the State Fiscal Service, by filling the respective form approved by the State Principal Fiscal
Inspectorate. The subject is considered registered from the first day of the month immediately following
the month when the corresponding form has been submitted.

Article 113. Cancellation of registration

(1) A taxable subject is required to notify the State Tax Service if he ceases to make taxable supplies.
The State Tax Service shall then cancel the subject’s registration for VAT.

(2) The Fiscal State Service is entitled to annul independently the registration of the VAT taxpayer in the
case when:
a) the total value of taxable supplies of the taxation subject, in any period of 12 consecutive months has
not exceeded the ceiling of 100 000 lei;
b) the taxation subject has not presented a VAT declaration for each fiscal period.
c) the information presented, in accordance with the art.8 paragraph (2) letter b), by the taxable subject is
unthruthful.
(3) In the moment of annulment of the registration of the taxpayer, he shall be considered as subject that
performed a taxable supply of his goods’ stocks and of the fix means for which, the moment of their
purchase, the VAT has been transferred into account and shall pay the debt to the VAT, for this supply
except for the cases provided at art. 107. The taxable value of the respective supply shall be considered
its market value.
(4) The annulment date of the registration as VAT payer is considered the date of drawing up the control
document on the basis of which the decision of the chief (deputy chief) of the tax body on the annulment
of the registration has been issued.

Article 114. VAT tax period

(1) A VAT tax period is the period of one calendar month starting on the first day of that month.

(2) When registration for VAT is cancelled, the final tax period starts on the first day of the month when
the registration was cancelled and ends on the day on which the cancellation of the registration takes
effect.

Article 115. VAT declaration and payment

(1) Every subject of taxation is required to file a VAT declaration for each tax period. The declaration is
to be made on the official form, which is to be submitted to the State Tax Service on or before the last
day of the month following the month in which the tax period ended.

(2) Every subject of taxation is required to pay to the budget the amount of VAT due in respect of each
tax period, but not later than the date determined for the presentation of the tax declaration for that
period, except for the VAT due to the budget for imported services, payment for which is due to the
budget at the date of payment for the imported service.

Article 116. VAT credit in the case of bad debts
(1) Where the whole or part of the consideration for a supply is treated as a bad debt under the current
legislation after VAT paid have been included into the VAT declaration, the subject of taxation is entitled
to credit for the amount of VAT paid in any tax period for VAT. The amount of VAT subject to credit is
the amount of VAT paid in respect of the supply that corresponds to the non-recovered amount of the bad
debt.

(2) Where a subject of taxation receives a payment in respect of a bad debt after getting the right for its
credit under sub-article (1), which payment is to be treated as a consideration for next taxable supply
made on the date the amount of bad debt is received.

Article 117. VAT invoice

(1) A subject of taxation who makes a taxable supply shall issue to the consumer the invoice for the
respective supply. The presentation of the invoice is made at the moment of appearance of the tax
obligation, determined by art. 108, except the cases foreseen by the present code. The fiscal invoice shall
not be issued for the supplies taxed according to art 104, letter a).

(2) A VAT invoice must contain the following information:
1) the current number of the invoice;
2) the title (name), address and TIN of the supplier;
3) the date of issue of the invoice;
4) the date of supply, if different from the date of issue of invoice;
5) title (name) and address of the buyer;
6) the type of supply;
7) for each type of goods, services:
a) the quantity of goods;
b) the unit price, excluding VAT;
c) the VAT rate;
d) the amount of VAT on the unit;
e) the total amount of the supply of goods, services to be paid;
f) the total VAT charged.


(3) For the retail sale and the render of services in specially arranged places, with payment in cash, the
issue of the fiscal invoice is not mandatory (except for the cases when it is requested by the buyer), if the
following conditions are respected:
a) the taxation subject shall keep the evidence of the sum received and pay in cash at each commercial
point and of render of services with the use of cashier and control machines. The inscription shall be
performed in the moment of receipt or payment of the sum in cash. At the enc of each day of work, the
balance is to be performed;
b) at the end of each working day, the evidence documentation is inscribed the total VAT sum for the
performed deliveries, and in the evidence document of the material values purchased the data from the
fiscal invoices that have been paid in cash shall be introduced.
(4) In case of digital products exported as services delivered in electronic manner ad paid through the
means of international payments system, the issue of the fiscal invoice is not mandatory.
 (5) When goods, services are delivered to the population with payment in cash, including trough
financial institutions, through the State Enterprise “Posta Moldovei”, through other authorized persons,
the issuance of fiscal invoices by the suppliers of goods, services is not performed.
Article 117' Special cases in issuance of fiscal invoices
(1) At goods’ delivery, if these goods are transported, the date of issuance of the fiscal invoice is the date
when the transportation starts.
(2) In case of regular deliveries of goods, services (electricity, heat, water, gas etc) during a period,
suppliers provide a fiscal invoice for the period when the delivery has been performed, with the bill
presentation to the buyer.
(3) The Subjects taxed with VAT (companies producing bread and bakery products, as well as the
enterprises producing milk and meat), which during a day, in accordance with the established schedule,
make several deliveries of goods taxable with VAT to the same buyer have the right to issue one single
fiscal invoice for the assortment of goods delivered to each consumer and for the total volume of
deliveries made during a day, reflecting in the invoice the numbers and series of the delivery invoices, as
well as the information about the deliveries.
(4) At deliveries of agricultural products to agricultural land owners on the account of payment for the
land rent, the fiscal invoice is delivered by the lessee in the last month of delivery, for the total value of
the delivery, enclosing the information about the beneficiaries, which comprises the indices specified in
the fiscal invoice and the holographic signature of beneficiaries.
(5) At transmittance of the right for utilization of the informational product, the fiscal invoice is issued by
the author or by the author’s right holder at the date set for the payment of the informational product
utilization, regardless of the fact if the transmittance of the author’s right take place on the basis of the
contract for transmittance of the author’s right exclusively or non-exclusively.
(6) The issuance by the principal instigator of the fiscal invoice is made after receiving the fiscal invoice
drawn up by the commissionaire for the provided service. When goods are delivered by the buyer, the
commissionaire issues the fiscal invoice on his own name. The commissionaire issues to the principal
instigator the fiscal invoice, as far as he executes the assignment of the principal instigator.
(7) At the execution of the principal instigator’s assignment to buy the merchandise, for later on to
transmit it to him, the commissionaire issues the fiscal invoice on his own name at the transmittance of
the merchandise to the principal instigator.
(8) The issuance of the fiscal invoice for the service rendered by the administration’s founder is made
after he receives the fiscal invoice issued by the fiduciary administrator for the service of fiduciary
administration which he provided. The fiscal invoice issued by the administration’s founder shall be
submitted to the fiduciary administrator. At the delivery of goods, services to the final consumer, the
fiduciary administrator issues the fiscal invoice on his own name. As far as the patrimony administration
service is rendered, the fiduciary administrator issues to the administration’s founder the fiscal invoice.
(9) When the payment is received before the delivery is made, the fiscal invoice is not issued, except for:
a) commercialization by the public nutrition enterprises of the food products of own production and of
goods to the consumer who is a subject of the entrepreneurial activity and who pays in advance to the
public nutrition enterprise for a certain period, the fiscal invoice in this case being issued when the
payment in advance is made.
b) subscription to the periodical publications taxable with VAT, as well as the rendering of publicity
services, the fiscal invoice being issued when the payment in advance is made.
c) deliveries of oil products (benzin, gasoline etc.) by issuing filling tickets or charging feeling smart-
cards, in case when consumer pays through bank transfer or in cash for the purchase of the consignment
of oil products to be further taken through utilization of the tickets or smart-cards, the fiscal invoice is
issued when the tickets are delivered or when the smart-card is charged.
d) delivery of mobile telephony services by paying in advance, the supplier issuing the fiscal invoice at
the moment, set by the contract, when the payment for the granted services is made.
(10) The re-invoicing of the compensated expenses is made by their entering in a separate line in the
fiscal invoice issued for the delivery of goods, services. In case when the delivery of goods and services
is missing, the re-invoicing of the compensated expenses is made through issuing the fiscal invoice in
which all these expenses will be entered.

Article 118. Records of goods, services

(1) Every subject of taxation shall keep records of all inputs and outputs (supplies of goods, services
made and received - transl.). Subjects of taxation who are engaged in the lines of retail trade or services
shall keep records of supplies of goods and services made and paid for in cash on a daily basis. Reports
on the supplies of goods, services made and received shall be prepared no later than one month after the
last date of the tax period for VAT to which they refer.

(2)    The records of supplies of goods, services received shall contain the following information:
a)    a serial number and number of the invoice;
b)    the date of receipt of the invoice;
c)    the title (name) of the supplier;
d)    a brief description of the supply;
e)    the total price, excluding VAT;
f)     the total VAT;

(3) The fiscal invoices for material values, services purchased/delivered shall be registered in the
respective registries in the order of their receipt/issue. The damaged or annulled fiscal invoices shall be
kept at the taxation subject.
(4) The sales register must contain the following information on supplies of goods, services:
a) a serial number of the VAT invoice;
b) the date of issue;
c) the consumer's title (name);
d) a brief description of the supply;
e) the total price charged, excluding VAT.
f) the total VAT;
g) the amount of discount, if offered.


(5)   VAT summary record must be kept, containing the following information for each tax period:
a)    The amount of VAT on supplies of goods, services received.
b)    The amount of VAT on supplies of goods, services made.
c)    Details of any adjustments affecting VAT.
d)    The net amount of VAT payable to the budget or the net amount of VAT excess subject to credit.
e)    The amount of VAT paid to the budget.
f)    The amount of VAT excess carried forward.
g)    The amount of VAT subject to refund.


TITLE IV
EXCISE STAMPS

Chapter 1
GENERAL PROVISIONS

Article 119. Terms.

For the purpose of this title the following terms are used:
        1) Excise Tax – a state tax applied to specified consumer goods and for gambling activity.
        2) Excise Certificate – a document issued by the State Tax Service detailing the registration of
        the subject of taxation, and giving him right to undertake transactions with excisable goods or
        perform gambling.
        3) Excise Premises – the totality of all sites owned by the subject of taxation, including the
        detached buildings, premises, territories, lands and other sites as documented in the Excise
       Certificate where the excisable goods are produced and/or processed and removed (transported)
       by the subject of taxation, including where gambling business is performed.
       4) Removal (transportation) – movement, transfer of excisable goods from Excise Premises
       5) Notice of removal (transportation) – the entering, made in written form, fixed in the Removal
       Register.

Chapter 2
SUBJECTS AND OBJECTS OF TAXATION, THE BASE OF TAXATION

Article 120. Subjects of taxation
Subjects of taxation are:
a) any physical or legal person who produces and (or) processes excisable goods on the territory of the
Republic of Moldova;
b) any legal or physical person, who imports excisable goods, with the exception of goods, provided in
Article 124 part (1) – (3), (5), (7), (8).

Article 121. Objects of Taxation and the base of taxation
   1) The objects of taxation shall be the excisable goods and the licenses for gambling activity, specify
       in the Appendix to this title.
   2) The base of taxation shall be:
       a) the volume in kind form of the excisable goods if for excisable goods as well as for import -
       the rates are established in the absolute amount for the unit of measure;
       b) the value of the excisable goods, excluding excise taxes and Value Added Tax, in case if for
       excisable goods the rates are established as ad valorem (as a percentage), except for the art. 123¹.
       c) the customs value of imported excisable goods, determined under the Customs legislation, as
       well as the taxes, duties and fees payable under importation, excluding Excise Tax and VAT, if
       for excisable goods the rates are established as ad valorem (as a percentage).




Chapter 3
THE RATES, CALCULATION AND PAYMENT OF EXCISE TAXES

Article 122. The excise tax rates

1) The excise tax rates, according to the enclosure of the present title, are set:
a) in the absolute amount for the unit of measure of goods;
b) the ad valorem rates (as a percentage) based on the value of goods without taking into
account the excises and VAT or based on the value in the customs of the imported goods, by
taking into account the taxes and fees that have to be paid at import, without taking into
consideration the excises and VAT;


Article 123. Calculation and Payment of Excise Tax

(1) The subject of taxation, specified in Article 120 paragraph (a) and who removes
(transports) any excisable goods from Excise Premises are required:
a) to calculate the excise taxes based on the volume in kind form or the value of goods
(depending on the rate in the absolute form or ad valorem (as a percentage));
b) to pay the excise taxes before the removal (transportation) of goods from Excise Premises
on the rates, fixed in the appendix of the present title;

(2) The liability for excise tax payment in the manner specified in part (1) is maintained
under the transference of excisable goods with payment or nonpayment, including in lieu of
wages of the subject’s of taxation employees, appropriated by the members of his family,
transferred to other persons, as well as moved by any other way from the Excise Premise
without excise tax payment.

(3) The excise taxes for imported goods are calculated and paid by the subjects of taxation
referred to in art.120 par. b) simultaneously with the payment of customs duties. In case that
for the import of goods custom duties are not levied, the goods are considered imported, as in
the situation when they are subjected to custom duty, provided that all regulations stipulated
by the customs legislation for the regime of import are respected.


(4) In case of export of goods due to excise taxes, the obligation of payment of the excise
taxes is valid until the moment of repatriation of the currency and presentation of the
justifying documents specified at art. 125, line (4). In case of non-presentation, within the
terms established by the Principle State Fiscal Inspectorate by the Ministry of Finances of the
documents specified at art 125 line (4), the subject of taxation shall pay for the excise taxes,
fines and penalties in the amount and way provided at art 260 line (5) and art 228 line (2).

(5) Such excisable goods as vodka, liqueurs and other alcoholic drinks, grape wines, fruit
wines, berry wines, grape wines saturated with carbon dioxide, divines (cognacs), sold,
transported or deposited on the territory of the Republic of Moldova or imported for sale on
its territory, as well as excisable goods purchased from resident business entities located on
the territory of the Republic of Moldova, but having no tax relationship with its budget
system, are subject to mandatory marking with “Excise Stamp. State commercial trade-
mark” Marking is done in the process of production of excisable goods prior to their
importation, and goods produced on the territory of the Republic of Moldova prior to their
shipment from excise premises (transportation). The manner of purchasing and use of
“Excise Stamps. State commercial Trade-marks” is established by the Government.

(5)¹ Tobacco products which are commercialized, transported or deposited on the territory of
the Republic of Moldova but have no fiscal relations with its budgetary system, are subject to
obligatory marking with excise stamp. Marking is performed during the goods’ manufacture
process until their importation, but of the goods manufactured on the territory of the
Republic of Moldova – until their delivery (transportation) from the excise room. Procedure
of procurement and utilization of the excise stamps is established by the Government.
(6) No marking with excise stamps is required for:
           a. sparkling wines and carbonated wines, divines (cognacs) in the souvenir
                bottles of 0.25; 1.5; 3 and 6 liter;
           b. Alcoholic drinks having in their composition up to 7% of ethylic alcohol;
           c. as well as excisable goods placed in the following customs regimes: transit,
                customs storage, free customs storage, temporary permission, duty free shop;
           d. as well as excisable goods produced on the territory of the Republic of
                Moldova and shipped for exportation by the producer.

Article 123¹ Manner of calculation of excise taxes for cigarettes with filter
(1) For the cigarettes with filter (tariff position 240220), excise taxes are calculated as sum of
excise tax established by multiplying the established quota in the absolute sum at the volume
in natural expression (1000 pieces) in the moment of sending from the excise room or in the
moment of importation and the excise tax established by multiplying the ad valorem quota in
percents set at the maximum price of retail sale.

(2) The maximum retail sale price is the price at which the products has been sold to other
persons for final consumption and which includes all the taxes and fees.

(3) The maximum retail sale price for any brand of cigarettes with filter is set by the persons
who produce cigarettes with filter in the Republic of Moldova (local produces) or who
import cigarettes with filter and is registered in the manner set by the Government.

(4) The sale by other persons of the cigarettes with filter for whom there haven’t been set and
declared maximum retail sale prices is forbidden.

(5) The sale by any person of the cigarettes with filter at a price which does not exceed the
maximum retail price is forbidden.

Article 124. Exemptions from Excise Taxes

(1) Excise tax shall not be paid by the natural persons who import goods of personal use and
consumption whose value or amount does not exceed the threshold set by the legislation in
force.
(2) Excise tax shall not be paid at the import of the following excisable products:

a) defined as humanitarian help, in the way provided by the Government;
b) aimed at projects of technical assistance, realized on the territory of Moldova by the
international organizations and donor countries within the limits of the treaties to which it is
a party to. The list of international treaties to which Republic of Moldova is party and of the
technical assistance projects is established by the Government ;
c) aimed for the official use of the diplomatic missions and other similar missions in
Moldova, as well as for the personal use and consumption of the members of the diplomatic
and administrative-technical staff of these missions and of the members of their families that
live together with them, on a reciprocal basis in the way provided by the Government.

(3) Excise stamps shall not be paid for the goods financed from the account of the loans and
grants given to the Government or given as state guarantee, from the account of the loans
granted by the financial international organizations (including the share-part of the
Government), aimed at the realization of the respective projects, as well as from the account
of the grants given to the institutions financed from the budget, according to the list approved
by the Government.

(4) No excise tax shall be paid in case when the taxation subject exports excisable goods in
an independent manner or based on the commission contract, given tat the provisions of art
123 line (4) are respected.

   (5) No excise tax is paid at placement and delivery on the customs territory in the duty-
       free shops and commercialization by these shops of the goods subjected to excises,
       except for the filter imported cigarettes, the import of excisable goods to the customs
       territory and their placement under customs regime of transit, customs warehouse,
       spare customs depot, destruction or rejection for the benefit of the state.

       (6) In importation of foreign excisable goods to the customs territory and their
       placement under customs regime of active improvement, excise tax is paid in
       importation of these goods with subsequent refund of the paid excise taxes upon
       importation of processed goods from the customs territory in the manner set by the
       Government.

       (7) No excise tax is paid in importation of foreign excisable goods to the customs
       territory and their placement under customs regime of temporary admission.

       (8) Excise taxes shall not be paid for the domestic excisable goods when placing the
       excisable goods, previously exported and reintroduced, within 3 years, in the same
       estate as the compensatory products after passive improvement, according to the
       customs regulations.

       (9) The excise tax paid at introduction on the customs territory of the Republic of
       Moldova of foreign goods subjected to excises under import customs regime is
       reimbursed when they are taken out from the customs territory, when they are placed
       under duty-free shop customs destination, when they are placed under free zone
       customs destination, in the manner established by the Government.

       (10) No excise tax shall apply to excisable goods introduced into the free economic
       zone outside of the customs territory of Moldova, from other free economic zones,
       from the rest of the customs territory of Moldova, as well as goods originating from
       this zone and taken out from the customs territory of Moldova.

 (10¹) The deliveries of excise chargeable goods carried out inside the free economic
 zone, as well as the deliveries of excise chargeable goods from one free economic zone to
 another free economic zone made by the enterprises, are not subjected to excise taxes.

(11)    Excisable goods taken out from the free economic zone to the rest of the customs
      territory of Moldova shall be applied with excise taxes.
(12) Excise taxes shall not be paid for excisable goods imported by legal persons in non-
    commercial aims, if their value at custom does not exceed 50 Euro. In the case their
    value exceeds the stated nontaxable threshold, the excise taxes shall be calculated
    starting from the value of the goods at custom, and the nontaxable threshold shall not
    diminish their taxable value.
(13) In case of disrespect towards the provisions of lines (5) –(9) of the present article and
    of the conditions of the chosen customs regime, established by the customs legislation
    of the Republic of Moldova, the taxation subject and the persons specified at art. 4, line
    (5) of the Law for application o the title IV of the Fiscal Code of Moldova shall pay the
    excise taxes according to the quotas set in the annex to the present title, a fee in value
    provided at art. 261, line (2) and (3) and a penalty determined according to art. 228.

   Article 125. Tax credits and repayments of excise taxes paid.

   (1) The subjects of taxation are allowed to make tax credits for the excise tax paid for
   excisable goods, used in processing and (or) production of other excisable goods, at the
   moment of expedition (transportation) of the finished excisable goods from the excise
   premises. The credit of the excise taxes paid, is allowed only within the limits of the
   excisable goods being used in the processing and (or) production of other excisable
   goods, at their subsequent removal (transportation) and if there are documents
   confirming the excise tax payment for excisable goods used. In case when the excisable
   goods are deposited for maturation, the subject of taxation is allowed to make excise
   tax credits within the limits of the quantity of excisable goods, used at the production of
   similar excisable goods, at the moment of removal (transportation) of these similar
   excisable goods from the excises premises and in case of presence of documents that
   confirm the payment of excises for the excisable goods.


   (2) If the sum of excise paid for the excisable goods used in the process of production
   and/or processing of other excisable goods exceeds the amount of the excise calculated
   for the excisable goods transported from the excise premises, the difference is reported
   to expenditures in the fiscal period that the transportation of excisable goods from the
   excise premises took place.


   (3) In case of export of excisable goods by the subjects of taxation, made independently
   or on the basis of the commission agreement, delivers excisable goods in duty-free
   shops, except for cigarettes with import filter and/or in free economic zones, the
   amount of excise tax previously paid for the excisable goods used in the production of
   the removed (transported) for export excisable goods shall be repaid, in the manner
   established by the Government, to the subject of taxation within 45 days after the
   submission of the confirming documents, established in part (4) of this article.

   (4) In order to obtain repayment of the excise tax paid for excisable goods used in
   processing and (or) production of other exported excisable goods, the subject of
   taxation shall submit to the State Tax Service authorities the following confirming
   documents:
   a) The contract, (copy of the contract) with foreign partner on supply of the excisable
   goods. In cases when the export supply of excisable goods is made on the basis of
   commission agreement by the commission agent – the subject of taxation shall submit
   the commission agreement and the contract (the copy of the contract) between the
   commission agent and foreign partner to the State Tax Service authorities;
   b) The payment documents and the extract from the bank, if it proceeds from the
   agreement conditions, confirming the actual takings from the realization of excisable
   goods to the foreign partner on the account of the subject of taxation;
   c) the cargo Customs declaration or its copy, certified by the head and the chief
   accountant of the subject of taxation with the marks of the Customs body of the
   Republic of Moldova which carried out the output of goods for export;

   (5) The excise tax is reimbursed in the account of debt pay-off of the economic agents
   (or of their creditors) towards the national public budget, except the fiscal obligations
   administered by the customs bodies, but in case of absence of debts is transferred to the
   economic agent bank account.

   (6) The export of goods by the non-subject of taxation is allowed, without the
   repayment of the amount of excise taxes for excisable goods removed (transported) for
   export.



Chapter 4
REGISTRATION OF SUBJECTS OF TAXATION, ACCOUNTING OF REMOVED
(TRANSPORTED), REALIZED EXCISABLE GOODS, EXCISE TAX PAYMENT
DECLARATION
Article 126. The registration of the subjects of taxation

(1) Any physical or legal person who intends to or produces and (or) processes excisable goods, which
are liable to excise tax, are required to obtain an Excise Certificate prior to the beginning of carrying out
the business activity, in the way provided by the Principle Fiscal State Inspectorate.

(2) The application for Excise Certificate, which must be submitted to the STS authorities shall include:
a) the name(s) (name, surname), legal address (addresses) and Fiscal Code (Codes);
b) the owner of the building, premises, territory, land;
c) in respect of the property, used for carrying out business activity under the lease, hire agreement, the
subject of taxation shall specify: the name(s) (name, surname), legal address and Fiscal Code (Codes) of
the person who has given it on lease or hire it out;
d) concrete forms and methods of control, which can be inspected and which can secure the safety of
excisable goods, including the transference of excisable goods from one Excise Premise into another
Excise Premise, when they are owned by the same subject of taxation and are situated on different lay-
outs.

(3) The applicant shall enclose a lay-out plan of the administrative buildings, warehouses, workshops,
other premises which are located on the subject of taxation territory, within the limits established for
carrying out business activity.

(4) If the application is complete and it includes information which can be controlled, the STS authorities
shall issue to the applicant the Excise Certificate and annex to it which includes a lay-out (a plan)
referred to in part (3) of this article. . Subsequently the applicant shall become the subject of taxation.

(5) The State Tax Service authorities can refuse the issue of Excise Certificate to the applicant, if they
consider that the control over the subject of taxation activity or excise premises can not be performed, or
forms and methods of control referred to in par d) of part (2) of this article does not ensure safety of
excisable goods.

(6) In cases when different subjects of taxation are using the same excise premises for the production and
(or) processing of excisable goods the State Tax Service authorities are required to determine
independently the subject or subjects of taxation, responsible for the excise tax payment, according to
provisions issued by State Tax Service.

(7) In cases, when the subject of taxation intends to make changes which must be reflected in the Excise
Certificate or in the Appendix to it, he is required to appeal State Tax service authorities with the
appropriate application.



Article 127. The accounting of removed (transported), realized excisable goods, the declaration of
excise tax payment.

(1) In respect of each Excise Premise, the subject of taxation shall maintain a Removal register. The
format of the Removal Register as well as the data which must be reflected in it are established by the
State Tax Service. Entries are made in the Register prior to shipment (transportation) of excisable goods
from the Excise Premises. Entries are made by hand, so that they cannot be deleted.

(2) The Removal Register of removed (transported) goods shall be kept in a designated place and made
available for examination purposes for authorized officers of the State Tax Service upon demand.
(3) The subject of taxation, provided in par a) of article 120, are required to submit the declaration of
excise tax payment not later than the last day of the month, following the month when the removal of
excisable goods was carried on. The form of the declaration and the procedure of its completion is
established by the State Tax Service.

Chapter VI
EXCISE TAX ADMINISTRATION


Article 128. Tax and Customs Authorities Control

(1) An authorized officer of the State Tax Service has the right to:
a) enter and (or) inspect any sites, buildings, premises (other than those used as the housing stock),
means of transport in the premises, buildings and on the roads as well as the goods in them, any
documents including transportation documents, reports, which in his or her opinion are used for the
purpose of dealing with excisable goods. Such entry and inspection shall only be permitted during
business hours;
b) having reason to suspect the fact of excise tax payment delinquency or that in any site, building,
premises, means of transport there are excisable goods upon which the excise tax has not be paid, to
perform the actions referred to in par a) and to perform inspection during non business hours having the
purpose of obtaining evidence or finding goods, except for the entrance into the dwelling purposes, for
which the prosecutor’s warrant or the prosecutor’s notification during 24 hours are needed.
c) has the right to seize the excisable goods, transport means which are at the disposal of any legal or
physical person, in case when the obligations to furnish proof can’t be fulfilled by this person. The
official of the State Tax Service is required to issue a seizure written notification, which includes the
detailed description of goods, place and time of seizure. If the person whose goods are seized does not
furnish proofs of the excise tax payment within 20 days, from the seizure date, a forced recovery of
excise tax is made, under the acting legislation.

(2) The control over the excise tax payments is performed by the Tax and Customs bodies in conformity
with this Title and Customs legislation.

Chairman of
the Parliament                                                Dumitru Diacov

Chisinau, June 16, 2000
No. 1053-XIV




Appendix
List of Excisable Goods and licenses

        Commodity                     Name of goods             Unit of           Excise
        Item                                                    measurement       Rate

        1                             2                         3                 4

                       0901           Coffee, even fried or     Price in lei      10%
                         without caffeine,
                         coffee shell, coffee
                         substitutes in any
                         proportion.

             1604201001 Red caviar                Price in lei   20%

             160430      Sturgeon caviar (black Price in lei     25%
                         caviar) and caviar
                         substitutes from grain
                         of roe of other fish

             2101        Extracts, essence and    Price in lei   10%
                         concentrates of coffee
                         and goods produced
                         based on these
                         extracts, essences and
                         concentrates of coffee
                         or coffee base.

[Position (2101)
introduced by Law No.
1440-XIV from
28.12.2000]

             220300      Malt Beer                Liter          1,35 lei

             220410110   Champaign                Value in lei   10% but not less
                                                                 than 2,50 lei/liter

             220410191   Classical sparkling      Value in lei   10% but not less
                         wines                                   than 2,50 lei/liter

             2241092     Natural sparkling        Value in lei   10% but not less
                         wines                                   than 2,50 lei/liter

             220410991   Carbonated wines         Value in lei   10% but not less
                                                                 than 2,50 lei/liter

             220421      Wines other than         Value in lei
                         sparkling and
                         carbonated wines,
                         grape wort
                         fermentation of which
                         was prevented or
                         suspended by adding
                         spirit in vessels of
                         more than 2 liters or
                         less:
                         a) with alcohol up to                   10% but not less
                         13%                                     than 1,25 lei/liter
                         b) with alcohol over                    10% but not less
                         13%                                     than 1,50 lei/liter
             220429         Wines other than         Value in lei
                            sparkling and
                            carbonated wines,
                            grape wort
                            fermentation of which
                            was prevented or
                            suspended by adding
                            spirit in vessels of
                            more than 2 liters or
                            less:
                            - with alcohol up to                    5% but not less
                            13%                                     than 0,25 lei/liter
                            - with alcohol over                     5% but not less
                            13%                                     than 0,30 lei/liter


[Position (220429)
modified by Law No. 1440-
XIV from 28.12.2000]

             220430         Worts other than         Value in lei   5% but not less
                            those fermentation of                   than 0,25 lei/liter
                            which was prevented
                            or suspended by
                            adding spirit

[Position (220430)
modified by Law No. 1440-
XIV from 28.12.2000]

             2205           Vermouths and other      Value in lei   10% but not less
                            wines made of fresh                     than 1,50 lei/liter
                            grapes, flavored with
                            plants or other flavor

             2206           Other fermented          Value in lei   10% but not less
                            beverages (for                          than 0,15 lei/liter
                            example obtained
                            from fresh pears
                            juice), mixtures of
                            fermented beverages,
                            mixtures of soft
                            drinks, not specified
                            in other parts

             220710000      Not de-natured ethylic Liter of         0.09
                            alcohol, having a      absolute         lei/%/vol/liter
                            concentration of       alcohol
                            alcohol of 80% vol. or
                            more
[modified by Law NO.
415-XV from 26.07.2001]

             220720000    Not de-natured ethylic Liter of         0.09 lei/%/vol
                          alcohol or other       absolute
                          brandies of any        alcohol
                          alcohol concentration

             2208         Non-denatured ethylic
                          alcohol with an
                          alcohol concentration,
                          depending on the
                          volume, up to 80%
                          vol; distillates,
                          brandies, liqueurs and
                          other alcoholic
                          beverages:

                          - with alcohol           Value in lei   12%, but not less
                          concentration,                          than 0,12 lei/%
                          depending on the                        vol/liter of
                          volume, from (% up                      absolute alcohol
                          to 25% vol;

                          - with alcohol           Value in lei   30%, but not less
                          concentration,                          than 0,10 lei/%
                          depending on the                        vol/liter absolute
                          volume, from 9% vol                     alcohol
                          up to 25% vol;

                          - with alcohol           Value in lei   50%, but not less
                          concentration,                          than 0,40 lei/%
                          depending on the                        vol/liter absolute
                          volume, over 25%                        alcohol
                          vol;


             240210000    Cigars, cigars with cut 1000 pieces     1350 lei
                          tops and cigarillas
                          (thin cigars)
                          containing tobacco

             240220       Cigarettes containing    1000 pieces    6 lei + 3%,
                          tobacco                  1000 pieces    4,00 lei
                          -with filter
                          -without filter

             240290000    Other cigars,            1000 pieces    6,80 lei
                          cigarillas, and
                          cigarettes containing
                          tobacco substitutes
         270710100    Petrol aimed as          Tone   1800 lei
                      carburant or
                      combustible

         270730100    Xiliols aimed at use as Tone    1800 lei
                      carburant or
                      combustible

         270750       Other mixtures of        Tone   1800 lei
                      aromatic hydro-
                      carburets whose
                      volume at least 65%
                      (including losses) is
                      distilled at 250
                      degrees with method
                      ASTM D 86

         270900100    Natural gas              Tone   1800 lei
                      condensate

         271011110-   Distilled oils, light    Tone   1800 leoi
         271019290    and medium

         271019310-   Petrol, including        Tone   500 lei
         271019490    combustible
                      (carburant) diesel and
                      combustible for ovens

290110                Acilic hydro-carburets Tone     1800 lei
                      saturated

         290124110    carburant or             Tone   1800 lei
                      combustible

         290124190    Buta-1, 3-diene aimed    Tone   1800 lei
                      to be used in other
                      purposes

         290211       Ciclohexan               Tone   1800 lei

         290129       Other acilic non-        Tone   1800 lei
                      saturated hydro-
                      carburets

         290220100    benzene aimed to be      Tone   1800 lei
                      used as carburant or
                      combustible

         290230       Toluen                   Tone   1800 lei

         290244       Mixtures of isomers      Tone   1800 lei
                      of xylenium
290290800   Other cyclic hydro-       Tone           1800 lei
            carburets

290511000   Saturated                 Tone           1800 lei
            Monoalcohols
            (methanol, propanol,
            butan-1-ol)

290514      Other butanols            Tone           1800 lei

290515000   Pentanol (amilic          Tone           1800 lei
            alcohol) and its
            isomers

290516      Octanol (ectilic          Tone           1800 lei
            alcohol) and its
            isomers

290519000   Acilic alcohols and       Value in lei   5%
–290549     their halogenic
            derivates, sulfates,
            nitrates or nitrosates

2906        Cyclic alcohols and       Value in lei   5%
            their halogenic
            derivates, sulfates and
            nitrates or nitrosates

2909        Ethers, ether-alcohols, Tone             1800 lei
            ether-phenols, ether-
            alcohol-phenols,
            alcohol peroxides,
            ether peroxides,
            cetone peroxides
            (with defined or
            undefined chemical
            composition)

3302        Mixtures of             Value in lei     5%
            odorifying substances
            (including alcoholic
            substances) based on
            one or more
            odorifying substances,
            as those used as raw
            materials for industry;
            other main
            substances, as those
            used for the
            fabrication of
            beverages

330300      Perfumes and toilet       Value in lei   10%
            water

321210      Marking sheets by        Value in lei   5%
            pressing in warmth

321290100   Mother-of-pearl          Value in lei   5%
            essence

321290390   Other pigments        Value in lei      5%
            (including powder and
            metallic corns),
            dispersed in a non-
            water ambiance, as
            liquid or pasta, as
            those used for
            fabrication of paints
            (including enamels)

321290900   Tinctures and other
            coloring substances,
            presented in forms or
            packages aimed at
            retail selling

381400900   Other organic solvents
            and dissolvents
            unnamed and not
            comprised in other
            parts, substances for
            elimination of paints
            or varnish

381700100   Dodecilbenzen            Tone           1800 lei

381700500   Linear achilbenzens      Tone           1800 lei

381700900   Other                    Tone           1800 lei

Ex. 4303    Fur clothing             Value in lei   25%

Ex. 7113    Precious jewelry or      Price in lei   10%
            jewelry from plated
            and non-plated metals

8519        Gramophones,             Value in lei   15%
            pickups, tape readers
            and other equipment
            for sound
            reproductions, that do
            not contain the option
            of sound recording

8520        Tape recorders, radio    Price in lei   15%
                        tape recorders, auto
                        tape recorders, audio
                        players

852110300               Other video recording    piece     10 Euro
                        or reproducing
                        equipment, even with
                        a receptor of video
                        phonic signals with
                        magnetic tape, with a
                        width not larger than
                        1,3 cm and whose
                        rolling speed is not
                        higher than 50 mm/s

            852110800   Other video              Piece     10 euro
                        equipment for
                        recording or
                        reproducing, even
                        those with a video
                        phonic receptor, with
                        magnetic tape

            852190000   Other video recording Piece        10 euro
                        or reproducing
                        equipments, even with
                        a video phonic
                        receptor

            852540      Photo apparatus and      Piece     30 euro
                        video cameras with
                        recording,
                        photographic
                        numerical apparatus

            8527        Reception equipment Value in lei   15%
                        for radiotelephones,
                        radiotelegraphic or
                        radio diffusion, even
                        combined in the same
                        body, with an
                        apparatus of recording
                        or reproducing of the
                        sound or with a clock

            8703        Cars and other
                        vehicles, mainly
                        conceived for the
                        transport of persons
                        (other that those from
                        the tariff position
                        8702), including cars
                        of “breek” type and
                                    racing cars
                                     Other vehicles with
                                    alternative starting
                                    motor with spark
                                    ignition

                      870321        With working             Cm3             0.30 EURO
                                    capacity of the engine
                                    not more than 1000
                                    cm3

                      870322        with working capacity    Cm3             0.40 EURO
                                    more than 1000 cub.
                                    Cm but not more than
                                    1500 Cm3

                      870323        with working capacity    Cm3             0.60 EURO
                                    more than 1500 cub.
                                    Cm but not more than
                                    2000 Cm3

                                    with working capacity    Cm3             1.00 EURO
                                    more than 2000 cub.
                                    Cm but not more than
                                    3000 Cm3

                      870324        with working capacity    Cm3             1.60 EURO
                                    of 3000 Cm3

                                    Automobiles with
                                    internal combustion
                                    engine of compression
                                    ignition (diesel or
                                    half-diesel):

                      870331        With working             Cm3             0.40 EURO
                                    capacity of the engine
                                    not more than 1500
                                    Cm3

                      870332        with working capacity    Cm3             1.00 EURO
                                    more than 1500 cub.
                                    Cm but not more than
                                    2500 Cm3

                      870333        with working capacity    Cm3             1.60 EURO
                                    more than 2500 Cm3

Notes:
[Item 1 excluded by Law No. 1440-XIV from 28.12.2000]
[Item 2, 3 become item 1, 2]

1. When excisable goods are shipped (transported) in a form which does not correspond to the measure
units in which the excise quotas are established, the taxation (application of the excise stamps or “Excise
stamp. State Commercial Stamp) is made following the approved quotas, recalculating the volumes in the
given measure unit. Similar procedure is applied to compute the excise tax on alcohol on the basis of the
absolute alcohol content.

2. When goods liable to excise tax and marking with excise stamps are shipped (transported) or imported
in the form that does not correspond to units of measurement in which the excise tax rates are set, these
goods are marked with one excise stamp the value of which is established at the moment of their
shipment (transportation), importation on the basis of the set rates re-calculated to be the necessary unit
of measurement.
[Former Item 3 excluded by Law No. 1021-XV from 25.04.2002]

3. By derogation from the provisions of art 125, the sum of excise taxes poured into the budget for the
denatured ethylic alcohol from the tariff position 220710000, purchase with the aim of its use in
medicine, in amounts of the annually established quota by the Government, shall be refunded according
to the Government Regulation.

4. The quota of the excise tax provided for a group of goods (production) shall apply for all products
included in the respective group, according to the Classified List of Goods of the Republic of Moldova.

5. the amounts of the excise taxes paid by the economic agents when purchasing the goods from the tariff
positions 270710100, 270720100, 270730100, 270750, 270900100, 271011110-271019290, 290110,
290124110, 290124190, 290129, 290211, 290219, 290220100, 290516, 290519000-250549, 2906, 2909,
3302, 321210, 321290100, 321290390 and 321290900, 381400900, 381710 shall be transferred into
account of the respective goods are used in the production process otherwise than as carburant or
combustibles, and those from tariff position 271011310, 271011700 and 271019210 shall be transferred
into account also at the level of economic agents that perform airships refuelling. By derogation from the
provisions of art 125 of the fiscal code, in the case of use of the goods mentioned as raw material for the
production and/or processing of goods that are not applicable with excise taxes or as combustible
(carburant) in the civil aviation, the transfers into account of the sums of excise taxes shall be done as
elimination of the debts of the payer towards the budget to other taxes and fees, and in the lack of these
debts, the sums of the excise taxes shall be transferred into the discount account of the economic agent.

6. The denatured ethylic alcohol from tariff position 220710000, aimed at the use of perfumery and
cosmetics, shall be exempted from payment of the excise taxes in the limit of the volume set by the
branch ministry, coordinated with the Principle Fiscal State Inspectorate and the Customs Service,
aiming at the realization of the activity Programme of the perfumery and cosmetics industry for the
respective year.

7. The quota of the excise taxes shall be increased for the vehicles with the exploitation term:
       From 3 to 5 years with 0,02 euro for each cm3
       From 5 to 7 years, with 0,03 for each cm3


TITLE V -TAX ADMINISTRATION

Chapter I. GENERAL PROVISIONS

Article 129. Notions

Aiming a exercising the fiscal administration, the following notions shall be defined:
1. Fiscal body – authority of the Fiscal State Service: Principle State Fiscal Inspectorate by the Ministry
of Finances, state fiscal territorial inspectorate in subordination of the Principle State Fiscal
Inspectorate by the Ministry of Finances. The notion “territorial fiscal state inspectorate” is identical to
the notion “fiscal territorial body”;
2. Fiscal state Service – centralized system of fiscal bodies and the activity of fiscal functionaries that
work in these bodies, aimed at the performance of duties of fiscal administration according to the fiscal
legislation;
3. Governance of the fiscal body – chief (deputy chief) of the Principle State Fiscal Inspectorate by the
Ministry of Finances; chief (deputy chief) of the territorial Tax State Inspectorate. For the State Tax
Inspectorate of Chisinau municipality – chief (deputy chief) of the inspectorate, chief (deputy chief) of
the fiscal office.
4. Fiscal Functionary – person with high responsibility functions, remunerated in the fiscal body that
disposes (or will dispose of, according to the established procedure, in case in which he starts working
for the first time in a fiscal body) of qualification grades according to the present title ad the legal acts
adopted in accordance with the former. The notion “fiscal functionary” is identical with notions “high
liability person from the fiscal body” and “high liability person of the Fiscal State Service”, provided
by the present code.
5. Representative of the taxpayer (person) – a person who acts on the basis of a mandate, issued in
accordance with the legislation, lawyer empowered in accordance with the legislation; parent, adopter,
tutor or curator in case of the natural person that does not have full legal capacity; other parsons who,
according to the legislation can act as representative.
6. Fiscal obligation – obligation of the taxpayer to pay to the budget a certain sum as tax, fee, increase
of delay (penalty) and/or fine.
7. Fiscal period – timeframe set according to the legislation, for which the fiscal obligation shall be
fulfilled.
8. Term of liquidation of the fiscal obligation – time, established according to the fiscal legislation, in
which the fiscal obligation shall be fulfilled, including the last day in the program hours of the fiscal
body. If the last day is a holiday, the last day shall be considered the first working day after the holiday.
Analogically, the terms of fulfillment of other actions provided by the fiscal code shall be determined.
9. Fiscal reporting – any declaration, information, calculation,. Information notice, other document that
is presented or shall be presented to the fiscal body, regarding the calculation, payment, retain of taxes,
fees, increase for delays (penalties) and/or fines or regarding other facts that relate to the arising,
modification or ending of the fiscal obligation.
9¹. Unified fiscal accounting report – declaration, submitted or which should be submitted to the fiscal
body, regarding the calculation, payment, retaining of fees, taxes, premiums of obligatory medical
insurance, delay penalties and/or fines by the individual entrepreneur, farmer’s household of which
annual average number of employees, during the fiscal period does not exceed 3 persons and which re
not registered as VAT payers.
10. Evidence documents – documents regarding the operation, to performance of payments related to
these operations, according to the normative acts, for the activity of the taxpayer. In the category of
evidence documents, the documents of accountant evidence are also included (provided by the
legislation regarding the accountancy evidence), financial reports, in formations, accountancy
registries, rights’ titles, accountant data (any types, including computerized) etc.
11. Fiscal control – verification of the correctness with which the taxpayer performs the fiscal
obligation and other obligations provided by the fiscal legislation, including verification of other
persons in what concerns their relation with the activity of the taxpayer through methods, forms and
operations provided by the present code.
12. Fiscal breach – action or non-action, expressed through the non-fulfillment or non adequate
fulfillment of the provisions of the fiscal legislation, by the breach of the rights and interests of the
participants to the fiscal relations, for which a liability is provided in accordance with the present code.
13. Debt – sum that the taxpayer was obliged to pay to the budget as tax, fee or other payments, but
which he did not pay in due time, as well as the amount of the delay increase (penalty) and/or fine.
 14. Forced execution of the fiscal obligation – actions taken by the fiscal body for the forced fulfillment
 of the debt.
 15. Goods – totality of material values and non-material actives, including money, stocks and shares
 that are in the property of a person, regardless of the fact in whose effective use these are, as well as
 other patrimonial rights.
 16. Seizure of goods – actions taken by the fiscal body for making the goods of the person unavailable
 for any transactions;
 17. Bank account – account open in a financial institution (branch or representation office of the latter)
 from Moldova or from abroad.
 18. Sum paid extra – sum paid as tax, fee, increase for delay (penalty) and/or fine by pouring or cashing
 in, including through forced execution, in a larger amount that the one provided by the fiscal
 legislation.
 19. Fiscal secret – any information of which the fiscal bodies dispose, including the information related
 to the taxpayer that constitutes commercial secret, except for the information regarding the breach of
 the fiscal legislation.
 20. Governance of the fiscal bodies – general director of the Customs Service (deputy director), chiefs
 of customs offices (deputy chiefs of the latter).
 The aforementioned provisions do not allow the taxpayer or his representative to retain information
 requested by the fiscal body according to the fiscal legislation and do not prohibit to the Ministry of
 Finances and to the fiscal body to publish the name of the persons that breach the fiscal legislation.

Article 130. Relations regulated by the present Title

       (1) This Title regulates the relations arising in the tax administration.

Article 131. Bodies who have functions of fiscal administration


 a.       Bodies that perform fiscal administration functions are: fiscal bodies, Center for Fight Against
      Organized Crimes and Corruption, custom bodies, services for collecting of local taxes and fees
      from the city halls and other empowered bodies, according to the legislation.
 b.   Bodies with fiscal administration functions shall, in the process of performing of the respective
      obligations, co-work among them and cooperate with other public authorities.
 c.   Fiscal administration bodies, in case of performance of some action on the basis of reciprocal
      agreements, shall inform each other regarding the measures taken and their results, shall exchange
      information aiming at the performance of their functions duly.
 d.   Bodies with fiscal administration duties are entitled to collaborate with the competent bodies from
      other countries and to be member of the international organizations from this field. The way of
      cooperation and activity shall be set based on the international treaties Republic of Moldova is
      party..
 e.   Fiscal administration bodies are obliged and entitled to present the information that they dispose of
      regarding to a particular taxpayer to:
 a)   fiscal functionaries and persons with high liability functions of the public authorities, in whose
      functions are also the performance of control over the respect of the fiscal legislation – aiming at
      performing of their work obligations;
 b)   legal institutions – regarding the fiscal breaches;
 c)   courts – aiming at examining of cases that relate to their competence;
 d)   fiscal bodies of other countries, in accordance with the international treaties that Moldova is part to;
 e)   staff of the Ministry of Finances and of the local public administration authorities – exclusively
      aiming at improving the fiscal policy and elaboration of the state budget and of the budgets of the
      administrative-territorial units;
 f)     public central and local administration authorities, upon their request, as well as to the media –
       exclusively about the breach of the fiscal legislation, if this fact is not damaging the legal interests
       of the legal bodies and court authorities.

                                Chapter II. TAX AUTHORITIES

                 Article 132. General principles of organization of tax authorities


(1) The main duty of the fiscal body consists of performance of control over the respect of the fiscal
legislation, over the correct calculation, complete pouring into the budget of the fiscal obligations.
    (5) The State Tax Administration within the Ministry of Finance of the Republic of Moldova and
        territorial state tax administrations being subordinated to the former:
        a) have the status of legal persons and are funded from the state budget resources, and shall
        b) act independently on the basis of the Constitution of the Republic of Moldova, this Code and
        other laws, Parliament decisions, decrees issued by the President of the Republic of Moldova and
        Government decisions, of the decisions adopted by the public local administration authorities in
        the field of fiscal issues, within the limits of their competences.

         (2) General management of the activity of tax authorities shall be performed by the Ministry of
         Finance responsible for organizing the activity of the State Tax Authorities regarding fulfillment
         of the invested duties, disallowing any interference with its day-to-day activities and territorial
         state tax administrations.

         (3) The manner of operation, the manner of approval of the organizational structure, personnel
         arrangements, labor remuneration fund, as well as assignment of classification ranks to tax
         officials shall be determined by the regulation on a tax authority approved by Government.

      (6) The organizational structure of the Fiscal State Service shall be approved by the Government, and
          the activity sphere of the fiscal territorial bodies and the sphere of service of the taxpayers – by
          the Principle state fiscal Inspectorate, by the Ministry of Finances.


Article 133. Functions of Tax Authorities
(1) The State Tax Administration within the Ministry of Finance (hereinafter referred to as the State
Tax Administration) shall:
a) organize the activity of the territorial state tax administrations aimed at the implementation of the tax
control function and ensuring the development and operation of a uniform informational system of data
on taxpayers, tax agents and payments to the budget;
b) oversee the activities of the territorial state tax administrations, review letters, requests and complaints
related to their work, and undertake necessary actions to increase the efficiency of their work;
c) issues orders, instructions and other acts aiming at the fulfillment of the fiscal legislation;

d) organize the familiarizing with the tax legislation, and if necessary, respond to letters and requests
from the taxpayers;
e) performs fiscal controls;

f) organizes and performs, case to case, the forced execution of the fiscal obligations;
g) examines the claims and contestations and issues decisions regarding them;

h) control the activity of customs bodies with respect to compliance with the tax legislation and appeal
to competent authorities to penalize customs officials responsible for tax violations;

h¹) issues decisions regarding the case of fiscal violation established as result of application of the
provisions of the art. 225
i) organizes different contests, with stimulation from budgetary sources of the taxpayers who, directly or
indirectly, contributed to the process of tax administration and/or increase of cashing to the national
public budget. The organization of contests is made in the manner set by the Government.

j) cooperates with authorities from other countries on the basis of international treaties to which Moldova
is a party and activate within the international organizations in this field, whose member it is;

k) submit information and reports on payments, including arrears, and on methods to collects such
payments (arrears) in compliance with instructions of the Ministry of Finance.

l) delegates duties to the state fiscal territorial inspectorates;

m) prevents, depicts and fights the violations that related to the repatriation of money, goods and services
that result from external trade transactions;

n) undertakes other duties provided by the legislation.

(2) Territorial State Tax Administrations shall:
a) undertake actions to ensure full and timely collection of payments to the budget;
b) explain the provisions of the tax legislation, review letters and requests from the taxpayers;
c) ensures the full evidence of the taxpayers and of the fiscal obligations, except for those administered
by other bodies;

d) performs fiscal controls;

e) ensures the performance of forced fulfillment of fiscal obligations;

f) ensures the taxpayer, free of charge, with type-formularies for fiscal reporting, issued in accordance
with the respective instructions;

g) issues, against a fee, formularies of fiscal invoices to the taxpayers, excise stamps, in the way provided
by the Principle Fiscal state Inspectorate;

h) seals the cashier and control machines of the taxpayers, keeps their evidence, performs controls
regarding the use/non-use of them by the taxpayers at the cash discounts;
i) examines contestations, prior requests and issues decisions based upon them.

j) performs other duties provided by the legislation.

(3) The Principle State Fiscal Inspectorate performs its duties on the entire territory of Moldova, and the
fiscal state Territorial inspectorate can perform its duties outside the territory set only with the
authorization of the leadership of the Principle State Fiscal Inspectorate.

 Article 134. Rights of Tax Authorities

(1) The tax authorities shall have the right to:
a) conduct tax audits of taxpayers (including public authorities) and tax agents, request explanations and
necessary data on issues arising during tax audits;
b) regardless of the type of ownership, ask for and receive free of charge from other persons
information, data and documents necessary to perform their functions, including copies of these
documents, documents related to the operations of such persons, except for the information representing
the state secret;
c) perform fiscal visits;

d)enter and inspect, in the manner provided by the legislation, production facilities, warehouses and
storage facilities, commercial premises and other facilities used to generate income or keep objects of
taxation, as well as other objects and documents regardless of their location, and if necessary seal them
up;
e)to have access to the electronic system of accountant evidence of the taxpayer;

f) verify the accuracy of data indicated by taxpayers or economic agents in their accounting records or
tax reports;

g) seize the documents of the taxpayers and economic agents in evidence of tax violations ;

h) to ascertain the violations of the fiscal legislation and to apply measures provided by the legislation;

i) to initiate actions against the taxpayer in the competent courts, regarding:

- the annulment of some transactions and cash in to the budget the means obtained from these
transactions;

- annulment of the registration of the enterprise, organization, in case of violation in the way provided by
the foundation of the former or of non correspondence of constitution acts with the legislation and cash is
of the incomes obtained by them;

- liquidation of the enterprise or organizations on the grounds set by the legislation and cash in of the
incomes obtained by these;
- other actions in accordance with the legislation;

j) request of the taxpayers and tax agents or their representatives and officials to remedy discovered
violations of tax legislation, as well as exercise control over the elimination of such violations by taking
coercive measures, if necessary;

k) at estimation of the taxable objects and by calculation of taxes and fees, use methods and direct or
indirect sources;

l) to receive taxes, fees, delay increases (penalties) and/or fines in cash;

m) to perform the forced execution of the fiscal obligations in the manner set out by the fiscal legislation;

n) seize in the manner provided by the legislation any assets of any person, except for those stipulated by
this Code;

o) suspend in the manner provided by the legislation the transactions on bank accounts of the taxpayers,
except for the loan account and provisional account (of accumulation of financial means for the
formation or increase of the equity capital), as well as of the accounts of the natural persons that are not
subjects of the activity of entrepreneurship;

p) summon any taxpayer, or a person subject to tax, or any official of the taxpayer, including the person
responsible for keeping the accounting records of the person subject to tax or any other person to give
testimony, produce documents and information directly related to the issues under consideration by the
tax authorities, except for the documents and information that are considered state secret under the
legislation;

r) in the process of determination of the amount of taxes, fees, delay increases (penalties) and/or fines or
of their lifting, to request from the financial institutions the presentation of documents referring to their
clients;

s) establish representations and conduct tax audits in other states under agreements to which the
Republic of Moldova is a party;

t) ask authorities of other countries for the information on taxpayers and tax agents that are engaged in
activities without their consent;

u) provide the authorities of other states with information on relations between foreign taxpayers and
local tax payers without the consent or notification of the latter;

v) for the purpose of exercising duties provided under this title, to use tax reports, mail correspondence
with taxpayers and information of public authorities in the electronic form and other forms compiled and
protected under the national legislation;
x) use mass-media means for the dissemination of information regarding the respect of the fiscal
legislation;

y) to undertake other actions provided by the fiscal legislation.

(2) The Principle State Tax Inspectorate of the Republic of Moldova shall have the right to establish
tax posts, other that those established in accordance with the legal acts,

(3) The Fiscal body shall have the right to cancel and amend decisions and regulations of the
territorial state tax administrations, as well as to suspend their execution, in case these contravene with
the legislation. The acts of the fiscal state territorial inspectorates that contravene with the legislations
can be cancelled, modified or suspend also by the Principle Fiscal State Inspectorate.

(4)    Lawful demands and orders of tax officers shall be binding upon any person, including officials .

(5) Interference with official duties of tax officers, insulting, or threatening them, putting up
resistance or doing violence to tax officers, as well as encroaching upon life, health or property of tax
officers or their immediate relatives in performing their official duties entail liability as provided by
law.

(6) An officer of a tax authority shall exercises his/her duties regarding the fiscal control on the spot or
regarding the forced execution of the fiscal obligation on the basis of a decision issued by the leadership
of the fiscal body.
 (Article 135 excluded by the Law nr. 1146-XV as of 20.06.2002)



Article 136 Obligations of Tax Authorities and their officials

(1) Tax authorities and their officials shall:
a) strictly abide by the Constitution of the Republic of Moldova, this Code and other legislative acts;
b) to treat respectfully and correctly the taxpayer and its representative, other participants to the fiscal
relations;

      b) to disseminate the fiscal legislation;
      c) to inform the taxpayer, in cases provided by the fiscal law or upon his request, about his rights
         and obligations;
      d) to inform the taxpayer, upon his request, about the taxes and fees in force, about the way and
         terms of their payment and about the respective normative acts;
      e) to insure, free of charge the taxpayer with type formularies of fiscal reporting;
   f) to perform, at taxpayer’s request, the compensation and drawing up of materials for
        reimbursement of sums paid in surplus or of the sums which according to the fiscal legislation
        shall be reimbursed;
   g)   to issue, at taxpayer’s written request, in which the certificate purpose shall be mentioned, the
        certificates regarding absence of debts towards the budget and certificates that confirm
        registration as payer of the income tax and VAT. The standard form of the mentioned certificates
        is elaborated by the State Main Fiscal Inspectorate;;
   h)   then there’ not international treaty that regulates the taxation, upon the written request of the non-
        resident or empowered person (payer of the income) to issue the certificate regarding the amounts
        of incomes obtained in Moldova and the taxes paid. The type formularies of the mentioned
        certificate shall be issued by the Principle Fiscal state Inspectorate by the Ministry of Finances;
   i)   to receive and register requests, communications and other information regarding the fiscal
        violations and to verify them, case by case;
   j)   review letters, applications and complaints of taxpayers in the manner established by the
        legislation;
   k)   to keep the evidence of the taxpayers and of the fiscal obligations;
   l)   to perform fiscal controls and to issue the required documents;
   m)   in case of discovery of a fiscal violation and non-fulfillment of legal requests of the fiscal
        functionary, to issue a decision regarding the application of a sanction;
   n) to return to the taxpayer or to his representative, within the provided terms the issued decision;
   o) not to use the service situation in personal interests;
   p) to take other measures provided by the fiscal legislation.

(articles 137-144 excluded by the Law nr. 1146-XV as of 20.06.2002)



Article 145. Lifting of documents

   (1) The documents shall be lifted in cases:

   a) the need to prove using documents the fiscal violation;
   b) possibility of their disappearance;
   c) in other cases expressly provided by the law.

   (2) the fiscal functionaries lift the documents regardless of their ownership and location place,
       insuring their storage at the fiscal body.
   (3) The lifting of the documents shall be performed in the presence of the person from whom these
       are lifted, and f that person is missing or refuses to participate, in the presence of two assisting
       witnesses.
   (4) A report shall be performed for the lifting of the documents, and it shall contain:
   a) date and place of its performance;
   b) function, name and surname of the fiscal functionary and of the person from whom the
      documents are being lifted;
   c) data regarding the owner or possessor;
   d) list of lifted documents;
   e) time and reason of lifting;
   f) name, surname and address of assisting witnesses, upon case;

   (5) The report is signed by the person that performed it and from which the documents were lifted or
       by the assisting witnesses. If the person from whom the documents are lifted refuses to sign the
       report, the refusal will be noted in it.
   (6) The lifted documents, after their use, shall be returned to the person from which these were lifted,
       or when the latter is missing, to the person that replaces it.

Article 146 Fiscal Post

   (1) The fiscal post shall be created by the fiscal body in the aim of prevention and discovery pf cases
       of fiscal violation, including of cases of evasion from the liquidation of fiscal obligations, as well
       as aiming at the performance of other duties of fiscal administration.
   (2) The fiscal posts can be fixed or mobile. The fixed fiscal post is located in an established place and
       specially arranged, where it shall perform its duties. The mobile fiscal post, insured with technical
       means including transportation means, shall move, according to the case, in the controlled
       territory.
   (3) The fiscal post is constituted of at least one fiscal functionary and, depending on the case and the
       way of performance of control, from collaborators of the internal affairs bodies or of another
       body.
   (4) The Principle Fiscal State Inspectorate, in common agreements with the resort bodies, shall
       decide upon the establishment of fiscal posts and shall decide on their type and location, and shall
       also approve their regulation. In case of creation of fiscal posts in public places, the decision shall
       be coordinated with the executive body of the public local administration. In case of creation of
       fiscal posts on the territory of an economic agent, the latter is obliged to insure their staff with
       access and necessary conditions for the performance of their duties.



Article 147. Cooperation between Tax Authorities and Public Authorities

(1) Public authorities shall provide the tax authorities with all information and documents necessary to
fulfill the functions and authorities under this Code, except for the data that is expressly prohibited from
disclosure under the legislation.

(2) The central and local public administration authorities shall delegate their officials to help the tax
authorities in the implementation of their functions. The decision on the delegation of such officials shall
be taken within five days from the date of receiving the appropriate request of the tax authorities, except
for the cases that need immediate interference.

(3) At the request of the law enforcement authorities, the tax authorities shall provide assistance in the
determination of tax liabilities for criminal cases initiated under the criminal procedure, as well as in
trials held in connection with the violations of the tax legislation.

(4) The fiscal body shall cooperate with other public authorities in the limits of their duties provided by
the fiscal legislation and elaborate methodical indications in the field of administration of taxes and fees,
according to the legislation in force.

(5) The tax authorities shall independently decide its work plans. Nobody but the bodies authorized by
the current legislation shall suspend audits and other actions carried out by the tax authorities.


Article 148. Selection and Enrollment of Tax Service Officers



           (1) The selection and enrollment in the Tax Service shall be performed only from the citizens
               of the Republic of Moldova regardless of their race, nationality, ethnical origin, sex and
               religion, who have permanent residence on the territory of the Republic of Moldova, have
               respective education and are able, from a medical standpoint, to fulfill their duties and are
               not subject to the restrictions stipulated in the Law on Public Service. Incorporation into
               the fiscal body shall be performed in accordance with the legislation regarding the public
               service and the labor legislation.
           (2) The persons incorporated into the fiscal service as fiscal functionary shall take an oath, in
               accordance with the Law on public service and shall be registered fingerprint, in
                 accordance with the legislation.
           (3)   Those tax officers who hold ranks shall be entitled to wear a uniform with appropriate
                 badges of rank while being on duty. The uniform shall be given to them free of charge.
           (4)   Tax officers shall be issued service permits and badges is confirmation of their authorities
                 as defined in the procedures approved by the State Tax Administration with the Ministry
                 of Finance of the Republic of Moldova.
           (5)   While exercising their functions, tax officers shall be the representatives of the state and
                 shall be under its protection.
           (6)   The transfer of Tax Service officers and application of disciplinary measures shall be
                 performed by the body that enrolled them in accordance with the effective legislation.
           (7)   The Tax Service officers shall be forbidden to undertake another part-time paid work
                 (except for research, teaching and creative activity), to be directly involved in
                 entrepreneurial activity, and be proxy for the third parties in the tax body.
Article 149. Classification Ranks of Tax Officials

(1)   The following ranks shall be established for the tax officials:
a)    Chief State Tax Adviser \ Chief State Commissioner of the Financial Guard;
b)    First Rank State Tax Adviser \ First Category State Commissioner of the Financial Guard;
c)    Second Rank State Tax Adviser \ Second Category State Commissioner of the Financial Guard;
d)    Third Rank State Tax Adviser \ Third Category State Commissioner of the Financial Guard;
e)    First Rank Tax Adviser \ First Category Commissioner of the Financial Guard;
f)    Second Rank Tax Adviser \ Second Category Commissioner of the Financial Guard;
g)    Third Rank Tax Adviser \ Third Category Commissioner of the Financial Guard.

 (2) The existing ranks (Chief State Tax Adviser, First, Second and Third Ranks State Tax Advisers,
First, Second and Third Ranks Tax Advisers) shall be equal under any conditions with the ranks
stipulated in paragraph (1) of this article and shall not be subject to revision, except under the Regulation
approved by the Government.

(3) The procedures for giving ranks, and the amount of additional payment for them shall be established
by the Regulations on the State Tax Service adopted by the Government. The granting of the rank shall
be noted in the work carnet.
(Article 150 excluded by the Law nr. 1146-XV as of 20.06.2002)

(Article 150 excluded by the Law nr. 1146-XV as of 20.06.2002)

Article 151. Protection of the Rights and Interests of Tax Bodies Officers
(1) The rights and interests of the tax officers shall be protected under the Law on Labor Protection and
this Code.

(2) Tax bodies officers shall be repaid for the damage caused when exercising their functions:
a) Where the tax officer died while exercising his/her functions or under the circumstances related to
exercising his/her functions, the family and dependents of the deceased person shall be paid from state
budget a lump-sum financial aid equal to 10 annual salaries based on the average salary of the officer
calculated for the last calendar year of his/her activity;

b) Where the tax officer received serious injuries, as a result of which he/she will not be able to exercise
his/her professional functions in future, there shall be paid from state budget the following lump-some
financial aid: to the Ist grade invalids - in the amount of 60 per cent of the amount stated in item (a) of
paragraph 2 of this article; to the 2nd grade invalids – 40 per cent; to the 3rd grade invalids – 20per cent.

 (3) Persons, whose actions caused or contributed to the death or serious injuries inflicted on tax officer
shall reimburse at their own expense the amounts paid under paragraph (2) of this article.

(4) The damage caused to the property of tax officers while exercising their functions shall be
compensated in full from the state budget with subsequent recovering of this amount from the guilty
persons.

Article 152. Financial and Social Motivation of Tax Bodies Officers

(1) Tax bodies officers while on duty shall be provided with vehicles equipped with protected radio
communication and special signaling devices, as well as with special equipment and armament under the
set goals by the authorization of the head of the tax body.

(2) Tax bodies officers and members of their families shall be entitled to healthcare, social and resort-
hotel services inclusive of housing facilities. They are entitled to rights and benefits under the legislation.

(3) Under the current legislation, other measures for material benefits and social insurance of tax
officers may be provided for.

Article 153. Responsibility of Tax Bodies Officers and Entitlement to Appeal against Their Illegal
Actions

(1) Tax bodies officers shall be responsible for those actions of theirs, which contradict the law as
established by the legislation.

(2) Damage caused by illegal actions of tax officers shall be compensated as established by the
legislation.

(3) Decisions and actions of tax officers, which are considered by the taxpayers illegal, may be appealed
by them in accordance with the procedures established by this Code and other regulations.


Chapter 3

Other bodies with fiscal administration duties

Article 153/1 Duties and rights of the Center for Fight Against Economic Crimes and Corruption

   a. The center for fight against economic crimes and corruption and its territorial branches fulfill fiscal
      administration functions in the limit of the rights and obligations provided by the law regarding the
      Center for Fight against Economic Crimes and Corruption and in the way provided by the present
      code and other normative acts adopted in accordance with it.
b.    During the fiscal inspections carried out within the criminal proceedings, the bodies of the Center
      for Combat of Economic Crimes and Corruption have the rights of the fiscal bodies, and their
      employees –the rights of the fiscal functionary, including the right to calculate the fiscal obligation
      and to transmit it to the fiscal body for forceful execution.

Article 154. Duties and rights of the customs bodies

   (1) The customs bodies perform fiscal administration duties according to the present code, the
       customs code and other legal acts adopted in accordance with the present code.
   (2) The customs bodies have rights that relate to the insurance of elimination of fiscal obligations
       related to the transfer via the border and/or placement of the goods in a customs regime,
       according to the customs code, present code and in cases expressly provided by it, as well as by
       other legal acts adopted in accordance with it.

Article 155. Obligations of the customs bodies
    (1) The customs bodies have obligations that relate to the insurance of elimination of fiscal
        obligations related to the crossing of the border and/or placement of the goods in an accurate
        customs regime according to the Customs Code, the present code and in cases expressly provided
        by it, as well as by other normative acts adopted in accordance with it, including the obligation:

    a) to treat correctly and respectfully the taxpayer, its representatives and other participants to the
       fiscal relations;
    b) to inform the taxpayer, upon request, about the taxes and fees in force, about the way and terms of
       their payment and about the respective legal acts;
    c) to inform the taxpayer about its rights and obligations;
    d) to issue to the taxpayer, upon request, certificates regarding the elimination of the fiscal
       obligation;
    e) not to disclose information which is a fiscal secret;
    f) to present the fiscal body documents and information regarding the respect of the fiscal
       legislation, calculation and pouring into the budget of the taxes and fees provided by the present
       code, related to the crossing of the customs border and/ or placement of the goods into a certain
       customs regime, to perform the legal requests of the fiscal functionary;
    g) to keep the evidence of the fiscal obligations related to the crossing of the border and/or
       placement of the goods into the respective customs regime.

    (2) the customs bodies shall trigger to liability, in accordance with the customs legislation, the
        persons that have violated the fiscal legislation when crossing the customs border and/or
        placement of the goods under a respective customs regime.

Article 156. Duties of the tax and local fees collection service

    (1) Within the city halls, except for the City Hall of Chisinau and of Balti, the service of collection of
        local taxes and fees shall act with duties of administration of taxes and fees.
    (2) The service pf collection of local taxes and fees shall perform, in accordance with the activity
        field set at line (1), the duties provided at art 133 line (2), letters a), b) and d), as well as of letter
        c), regarding the evidence of the taxpayers whose fiscal obligations are calculated, and other
        duties expressly stated by the fiscal legislation. Duties relating to the compensation or restitution
        of the sums paid extra and of sums, which, in accordance with the fiscal legislation, shall be
        refunded, the forced execution of the fiscal obligations and the trigger to liability for the fiscal
        breaches shall be performed, in accordance with the present code, in common agreement with the
        fiscal body.

Article 157. Rights of the service of collection of local taxes and fees

  (1) The service of collection of local taxes and fees is empowered, according to the activity field set at
        art. 156 line (1) with the right to perform controls of the way in which the taxpayer respects the
        fiscal legislation, to request necessary explanations and information regarding the problem
        identified during the control, to apply delay increases, to cash in taxes, fees and delay increases,
        and/or fines, with the rights provided at art. 134 line (1) letter b), c), d), e) and t), as well as with
        other rights expressly provided by the fiscal legislation.
(2) The rights provided at art. 134 line (1) letter f), g), h), i), j), l), m), n), except for the application of
      the delay increase, shall be performed in common agreement with the fiscal body.



Article 158. The obligations of the service of collections of local taxes and fees
The Service of collection of local taxes and fees in obliged, according to the activity field stated at art
156 line (1):

   a) to execute the provisions of art. 135 letters a), b), c), d), e), i), j), l), as well as h), regarding the
      fiscal obligations whose evidence if kept at the service;
   b) to keep the evidence of the taxpayers, whose fiscal obligations are calculated by the respective
      service and the evidence of these fiscal obligations, including of the arrears, to transfer to the
      budget the sums cashed in as taxes, fees, delay increases, fines, according to the fiscal legislation
      and I the way provided by the Government;
   c) the fill in, with the agreement of the fiscal body, the payment notifications of the fiscal
      obligations, to distribute free of charge, to the taxpayers type-formularies of fiscal reports;
   d) to hand in to the taxpayers, according to the fiscal legislation, the payment notifications, as well
      as the issued decisions;
   e) to execute, in common agreements with the fiscal body the provisions of art. 136 letter g) and m);
   f) to present monthly, not later than date of 3 of each months, in the way provided by the
      government, to the fiscal body a report regarding the administered taxes and fees;
   g) to perform other obligations expressly provided by the fiscal legislation.



Article 159. Acts of the service of collection of local taxes and fees

(3) the decision that relates to the performance of service duties of collection of local taxes and fees is
    issued through the order of the mayor (praetor). By derogation from the provisions of the present
    title, the orders of the mayor (praetor) and the actions of the preceptor can be contested in the way set
    out by the law.
(4) In case the duties performed in common with the fiscal body, the decision is issued by the leadership
    of the fiscal body after it has been coordinated with the mayor (praetor).If the mayor (praetor) refuses
    to sign the decision, this gets legal power from the moment of its signature by the leadership of the
    fiscal body, that performs the inscription regarding the refusal of the mayor (praetor).



Article 160. Organization and functioning of the service of collection of local taxes and fees.

c. the organization and functioning of the service of collection of local taxes and fees shall be regulated
   through a regulation approved by the local council. The regulation is elaborated on the basis of a
   type-regulation, approved by the Government.
d. The preceptor shall be included in the service of collection of local taxes and fees with the agreement
   of the fiscal body. He is obliged to insure the instruction of the preceptor and to offer help in
   performing its obligations.
e. In villages, the functions of the preceptor can be performed, as exception, by the secretary of the city
   hall or any other functionary of the latter, but who is not empowered with the right to sign cashier
   documents.



Chapter 4

Evidence of the taxpayers

Article 161. General provisions
(1) The fiscal body shall keep the evidence of the taxpayers, granting them fiscal codes and updating
the fiscal registry in the way provided by the present title and by the instruction approved by the
Principal Fiscal State Inspectorate.

(2) The fiscal code, according to the present chapter, shall be granted only one time, regardless from
the fact if the regulations of the fiscal legislation regarding the establishment and elimination of the
fiscal obligations. The fiscal legislation can provide that the person that has been granted fiscal code,
shall register additionally as payer of different types of taxes and fees.

(3) The persons to whom the fiscal code has been granted by the fiscal body, shall be opened files in
which the following information and documents shall be included:

a) request fro granting of the fiscal code;

b) the registration certificate, issued by the authorized body to register the respective activities;

c) the copy from the documents that confirms the state registration or that allows for the performance
of the respective activity;

d) the copy of the certificate of granting of the fiscal code;

e) documents that confirm the existence of bank accounts;

f) the data regarding the founder or of persons that obtained the right to practice that kind of activity,
of the leader or accountant in chief (name, surname, birth date, address, contact information, data of
the identity card).

(4) Persons whose state identification number represents a fiscal code, the fiscal body shall open files
in which the information gathered and transmitted by the State Registration Chamber of the Ministry
of Information Development is kept, according to the regulation approved by the latter and by the
Principle Fiscal State Inspectorate.

(5) the evidence of the subdivisions without statute of legal persons located in another part than in the
headquarters of the legal person that these are a part of shall be kept by the fiscal body that grants a
code to each of these subdivisions.

(6) In case when the taxpayer changes its siege (domicile) from the area of activity of the territorial
fiscal state inspectorate where it is at evidence, it shall submit a request for the transmission of the
file to the fiscal body at its new siege (domicile). Within 10 working days from the date of receipt of
the request, the territorial fiscal state inspectorate will transmit the file to the fiscal body in whose
area of activity the new siege (domicile) is locate to take the taxpayer at evidence, without granting
him a new fiscal code.

(7) in case of losing of the certificate of granting of fiscal code, after the publication of the respective
notification in the Official Journal, the fiscal body shall issue, upon the taxpayer’s request, within 3
working days from the date of registration of the request, a copy of the lost certificate.

(8) The taxpayer shall, within 30 days from the adoption of the decision regarding the change of the
siege and/or establishment of the subdivision, inform the fiscal body regarding the change of the
siege and/or shall present the initial information, and then, the modification regarding the siege of its
subdivision.
   Article 162. Granting of the fiscal code

(1) In accordance with the present code, a fiscal code shall be granted:

    a) any legal person, enterprise with statute of natural person, as well as to any notary, individual or
      associates lawyers office;
b) any natural person – citizen of the Republic of Moldova, foreign citizen or apartheid – that disposed
      of taxable objects or has fiscal obligations, according to the fiscal legislation, or who has obtained
      the right to perform a certain activity of the basis of the entrepreneur patent.
  c) Any legal person or organization with status of natural person, non-resident that disposed of taxable
      objects on the territory of Moldova or which has fiscal obligations in accordance with the fiscal
      legislation.

(2) In order to be granted a fiscal code, the person shall perform the action provided by the present
chapter in the terms and the way set out by it.

Article 163 Place, terms and way of granting of the fiscal code

   (1) The persons named at art 162 line (1) letters a), and c) shall be granted a fiscal code by the
       territorial fiscal state inspectorate I which area the siege (domicile) is located, stated in the
       constitution documents (id card) or in the document by which the permission for practicing of that
       activity is given, or where the taxable object is located.
   (2) In order to be granted a fiscal code the persons name at art. 162 line (1) letter a) shall present to
       the territorial fiscal state inspectorate a request on a type-formulary, approved by the Principle
       State Fiscal Inspectorate. The request shall be submitted after the performance of documents
       regarding the state registration or of documents by which the practicing of the activity is allowed,
       but until the issue of the documents that confirms the state registration or of the document
       regarding the right to practice the activity. The request shall be accompanied by the documents
       existing at that moment in order to be attached to the dossier of the taxpayer. Within 3 working
       days, the territorial fiscal state inspectorate shall grant a fiscal code and communicate it to the
       authority that performs the state registration or which authorizes the practicing of these activities.
   (3) After submission of the document that confirms the state registration or the license to be engaged
       in certain type of activity, the territorial tax administration shall issue a fiscal code certificate to
       the taxpayer as per form and content determined by the Principle State Tax Inspectorate.
   (4) The state identification number, stated in the registration certificate shall be considered the fiscal
       code of the persons registered by the Chamber of State Registration of the Ministry of
       Information Development, and the registration certificate shall be recognized as certificate of
       granting of the fiscal code.
   (5) By derogation from line (2) and (3), the legal persons established on the basis of legal acts, as
       well as international treaties ratified by Moldova, shall be granted a fiscal code and shall be
       issued a certificate of granting of a fiscal code within 3 working days from the moment of
       submission of the respective request, to which the act that states this fact shall be attached, and
       incase of persons that act on the basis of international treaties – also the confirmation certificate
       issued by the competent public authority.
   (6) The fiscal code of the persons named at art. 162 line (1) letter b) represents the personal code
       named on the verso side of the id card or is identical with the number of the identity document of
       the foreign citizen or apartheid. The fiscal code of the person that has no id card shall be the
       series and number of the passport, and in case there’s also no passport – the series and number of
       the birth certificate or other identity act.
(7) Within 3 working days from the moment of appearance of the taxable object or of the fiscal
    obligation, the foreign citizens and the non-resident apartheids, persons named at art 162 line (1)
    letter c), shall submit to the territorial fiscal state inspectorate in which area the taxable object or
    the fiscal obligation is located, a request of granting a fiscal code to which the copy from the id
    act, respectively the copies, translated into the state language, notary certified and legalized by the
    consular offices of the Republic of Moldova, from the id documents in case of organizations as
    well as copied from the documents that confirm the existence of the taxable object.
(8) The fiscal body refuses the granting of the fiscal code only if not all the documents and
    information provided at art 161 line (3) are presented or if these contain obviously denatured data.

Article 164. State Tax Registry

(1) The State Tax Registry is a public registry that includes information on tax identification
    numbers assigned in accordance with this Chapter, and is prepared and kept by the tax authority.
    The fiscal body shall be responsible for the update of the State Fiscal Registry. The update of the
    Registry shall be performed upon the request of the taxpayer as well as on the grounds of control
    materials of the fiscal bodies.
(2) The tax identification number of the persons named at art 162 line (1) letter a) and c) shall be
    entered in the State Tax Registry as of the date of issue of the certificate of granting of the fiscal
    code to the taxpayer. The tax identification number of a resident as well as of citizens of the
    Republic of Moldova who are nonresidents, shall be entered into the State Tax Registry from the
    State Public Registry. Entering the tax identification number of a person in the State Tax Registry
    confirms the tax registration of this person.

    (3) The information introduced into the Tax State Registry shall be exposed clearly, correctly and
    exhaustively. The State Tax Registry shall be kept manually or electronically in the state
    language.
(4) The following information shall be entered in the State Tax Registry:

a) reference number of entry;
b) tax identification number assigned;
c) full name of the economic agent or the first and last name of individual persons;
d) number and date of state registration of the economic agent, data from the identification document
(passport, birth certificate) of individual persons;
e) data from the foundation documents, documents on changes and amendments;
f) first and last name of the person who received the TIN certificate;
g) information about founders, manager and chief-accountant (first and last name, date and year of
birth, address, telephone number, data from the identification document).
h) date of cancellation of the tax identification number.

(5) By derogation from line (4) the data regarding the persons whose fiscal code represent numbers
granted by other bodies shall be introduced into the Fiscal State Registry on the basis of a regulation
approved by the latter and by the Principle Fiscal State Inspectorate. The amount and the content of
the data included in this case into the fiscal Registry shall be determined by the above-mentioned
regulation.
(6) The inscriptions into the fiscal state registry kept manually shall be performed by the registrar on
the basis of information presented by the solicitant at the moment of issue by the taxpayer of the
certificate of granting of the fiscal code and are certified through the signature of the former. Any
corrections or modifications, completions to the registry shall be performed in the manner set out by
the legislation and shall be certified by signature by the registrar.
   (7) The deletion from the Fiscal State Registry shall be done in accordance with the law, by blocking
   of the inscription, of all rectifications, modifications, completions performed previously and shall be
   certified by signature by the registrar.

Article 165 Use of Tax Identification Number

(1) Any person required under the tax legislation to file tax reports or other documents with the tax
bodies shall show his/her tax identification number in the above documents and shall enter such number
in tax returns, reports or other documents. Where the third party has not informed of its TIN although
requested, a corresponding note shall be made in the tax report or any other document filed.

(2) Any person required under the tax legislation or other regulations to file a tax report or another
document regarding the third party with the tax bodies shall request from that party its tax identification
number and enter this number in the tax return, report or another document. Where the third party fails to
provide its tax identification number requested, a corresponding note shall be made in the tax report or
any other document filed.

(3) Where documents for transactions are prepared, the parties shall indicate their tax identification
numbers.

(4) Tax bodies shall show the taxpayer’s tax identification number in all notices served on such
taxpayer.

(5) The structural subdivisions of an economic agent that do not have a legal-person status shall use the
tax identification number of such economic agent.

Article 166. Contribution of Public Authorities to the Registration of Taxpayers

(1) Those public bodies that are authorized to perform the state registration of economic agents shall
inform the territorial state tax administration, with which the taxpayer is registered, of the newly entered
or deleted information within three workdays from the date of such economic agent’s registration,
reorganization or liquidation.

(2) Those public bodies that are authorized to regulate specific types of activity shall inform the
territorial state tax administration, with which the taxpayer is registered, of issuing, suspending or
canceling the entitlement to the taxpayer’s respective business within three workdays from the date the
respective decision is taken.

(3) Those public bodies that are authorized to register the civil status of physical persons shall notify the
territorial state tax administration, with which such taxpayer is registered, of changing his/her residence
or his/her decease within three workdays from the date of such person’s residence registration, changing
of residence, or decease.

(4) Those public bodies that authorize the emigration of persons for their permanent residence in other
countries shall authorize their emigration only based on the certificate issued by the territorial tax
administration confirming the payment of such persons’ tax liabilities, the territorial tax administration to
be further notified of the emigration within three workdays.

Article 166¹ National Bank of Moldova contribution to the record-keeping of the licensed financial
institutions
National Bank of Moldova presents to the State Principal Fiscal Inspection, within 3 working days from
the date of license issuance, its modification or withdrawal, the initial information and, further on, the
updated information regarding the financial institutions and their branches, participants in the
automatized system of interbank payments.

   Article 167 Obligations in case of opening, modification or closure of bank accounts

           a. The financial institution (its branch or representation) shall open bank accounts to the
              persons named at art 162 line (1) letter a) and C) only if these present the certificate of
              granting of the fiscal code or an equivalent document. The financial institution (its branch
              or representation) is obliged to, within2 working days, inform the territorial fiscal body
              where the taxpayer is at fiscal evidence, regarding opening of bank accounts (except for
              credit
           b. Operation on a bank account (except for credit and loan accounts, term limit deposits and
              temporary (of accumulation of financial means for the formation or increase of the equity
              capital) as well as of the treasury income accounts can start only after the receipt by the
              financial institution of the documents, issued and handed in by the fiscal body, that
              confirms the taking into fiscal evidence of the account. The bank account is taken for
              evidence by the fiscal body on the basis of the document issued and transmitted by the
              financial institution that confirms the opening of the account. In case I which the taxpayer
              has arrears, the fiscal body is entitled not to issue the document that confirms the taking
              for evidence. The document that confirms the opening of the account ad the document that
              confirms the taking into fiscal evidence of the account shall be sent and received by post
              or special courier.
           c. The financial institution (branch or representation) is entitled to open bank accounts to the
              resident natural person (foreign citizen or apartheid) or to the citizen of the republic of
              Moldova only if these present an id card or other document provided at art 163 line (4),
              that serves for the setting of the fiscal code and for the use of this code when keeping the
              evidence also in relations with the client or other persons, in the way provided by the
              legislation. Natural persons non-residents (foreign citizens or apartheids), legal non-
              resident persons that do not dispose of taxable objects on the territory of Moldova or do
              not have fiscal obligations are entitled to open bank accounts in the financial institution
              (branches or representations) of the Republic of Moldova according to the regulations of
              the National Bank of Moldova.
           d. Within 5 working days from the moment of modification or closure of the bank account
              (except for the credit and loan accounts, term limit deposits and temporary (of
              accumulation of financial means for the formation or increase of the equity capital), as
              well as of the treasury incomes accounts, the financial institutions, including the National
              Bank of Moldova shall communicate this by post or currier, to the territorial fiscal body
              where the account of the taxpayers is located.
           e. In case of opening of a bank account abroad, within 15 days from the moment of its
              opening, the persons named at art 162 line (1) letter a) shall communicate to the fiscal
              body the corresponding data. As confirmation of the registration of the account, the fiscal
              body shall issue to the taxpayer within 3 days a confirmation certificate.

Article 168 Annulment of the fiscal code (tax identification number)

(1) Tax identification numbers shall be cancelled where:

a) they were issued in violation of the tax law;
b) the economic agent has been liquidated or reorganized;
c) the physical person has deceased, has been declared missing in the normal manner or has emigrated to
another country for permanent residence;
d) the taxable object or the fiscal obligation has disappeared with regard to the natural person (foreign
    citizens and apartheids), legal persons or organization with statute of natural non-resident persons.
(2) Where the economic agents, named at art 162 line (1) letter a) are reorganized:

a) by means of merger, the tax identification number of the merging economic agents shall be cancelled,
and a new TIN shall be issued to the newly organized economic agent;
b) by means of absorption, the tax identification number of the associated economic agent shall be
cancelled;
c) by means of split up, the tax identification number of the split-up economic agent shall be cancelled,
and the newly appeared economic agents shall be assigned new tax identification numbers in the
established manner;
d) by means of split-off, the tax identification number of the reorganized economic agent shall be
maintained, and the newly created entities shall be assigned new tax identification numbers in the
established manner;
e) by means of the transformation of the enterprise into an enterprise with a different legal form, the tax
identification number of the reorganized entity is transferred to the newly created enterprise.

 (3) In cases stated at line (2) letter a), c) and d) , the economic agents shall attach to the application for
tax identification number a document that confirms the amount of debts received through succession as a
result of their reorganization.

(4) The cancellation of the tax identification number shall be made based on the following:

a) application submitted by the taxpayers named at art 162 line (1) letter a) and/or information presented
in accordance with art 166 line (2) or of the legal act issued on its basis, or of the certificate that confirms
the liquidation or reorganization of the entity, issued by the competent public authorities. To the
application the certificate of granting of the fiscal code shall be attached;
    c) courts decision where the economic agent is liquidated or the physical person is declared missing
        or deceased;
    d) decision of the tax authority where the tax identification number is assigned in violation of the
        current legislation;
    e) information received from public bodies that perform civil registration functions where the
        physical person is deceased;
    f) information that certifies that the natural persons (foreign citizens or apartheids) and legal entities
        and organizations with statute of natural person, non-residents that do not have taxable objects
        nor fiscal obligations.
(5) By derogation from line (4), the fiscal code that represents the state identification number shall be
annulled on the basis of information presented by the Chamber of state Registration of the Ministry of
Information Development.

(6) the cancellation of the fiscal code shall be done through its erasure from the fiscal state registry and
by the noting of this fact in the dossier of the taxpayer.

(7) The notification regarding the cancellation of the fiscal code, related to its granting of the fiscal
legislation, shall be published by the fiscal body in the Official Journal of Moldova and, within 3 days
shall inform about this fact the customs bodies, the state registration bodies and the statistics office. The
use of a cancelled fiscal code shall be punished according to the legislation.

(8) the cancelled fiscal code shall be kept in the fiscal state registry for 10 years from the moment of
cancellation.
(9) the cancelled fiscal code can not be granted to another person.

Chapter 5
Fiscal obligation (liability)

Article 169 Appearance and modification of Tax Liability

(1) A taxpayer shall become subject to tax after the circumstances, based on which the tax shall be paid
under the tax law, arise.

(2) the tax liability of the taxpayer that is due to be eliminated by another taxpayer, according to the
fiscal legislation, is obliged to retain or lift from the former the sums that constitute the fiscal liability and
to eliminate it, so it becomes the fiscal liability of the second from the moment of retain or lifting.

(3) The financial institution that receives a payment order from the taxpayer or a collection order from a
tax body demanding the transfer of funds to pay off the tax liability, ad respectively, treasury incasso
disposals for money transfers, shall become liable for such tax liability from the moment the order is
received. The taxpayer in its turn shall be also liable for the tax liability in the limits of the means that are
not available in the bank account for the integral elimination of the fiscal obligation.

(4) The modification of the fiscal obligation represents the change in its amount generated by the
modification of circumstances, established by the fiscal legislation, depending on which the obligation
was calculated.



Article 170. Way of elimination of the tax liability
The elimination of the tax liability shall be done through: payment, annulment, prescription, deduction,
compensation or forced collection.

Article 171. Liquidation of Tax liability through payment

(1) The liquidation of the tax liability through payment shall be made in the national currency of the
Republic of Moldova. The payments may be made either directly or by withholding at the source of
payment. Direct payments shall be made either through transfer or in cash, including via bank cards.

(2) Payment through transfer shall be done via the financial institutions if the legislation does not provide
differently.

(3) Payments in cash shall be made through the tax bodies, local public administration authorities, post
offices or financial institutions. The local public administration authorities and post offices shall provide
for the safety of the detailed entries regarding the taxpayer’s payments and transfers to the budget in
accordance with the provisions of the current legislation.

(4) The institution that has received money from the taxpayer shall transfer the appropriate amounts to
the budget on behalf of this taxpayer on the same day or not later than the following workday. The
authorities of the local public administration from villages in which there are no financial institutions or
their subdivisions can establish for the service of collection of local taxes and fees and for the post
operators another timeframe of pouring into the budget of the cashed in sums, but not more rare than
once per week.
(5) In case when the taxpayer has in its account monetary means, the financial institution is obliged to
execute, in the limit of these means, the treasury payment order of the taxpayer during the operation way
in which it was received.

(6) The sums transferred to deductions from the bank account of the taxpayer for the fiscal obligations
clearing-off shall be transferred by the financial institution (its branch or subsidiary) to the budget in the
operational day in which these were transferred to deductions. The sums received in cash from taxpayers
for clearing off the fiscal obligations are transferred by the financial institution (its branch or subsidiary)
to the budget but not later than the operational day following the day when they were cashed.

Article 172 Liquidation of the fiscal liability through annulment

The liquidation of tax liability through cancellation shall be made in accordance with the tax legislation
based only on general documents (tax amnesty) or individual documents approved in accordance with the
legislation.

Article 173 Liquidation of the fiscal obligation through prescription


The right of the state to apply the enforced collection of tax liability shall be liquidated by the expiration
of limitation, where this right has not been used within the period provided for by this Code. At the same
time, the tax liability of the taxpayer shall be liquidated. The elimination of the fiscal obligation as result
of expiry of the prescription terms shall be done based on a written decision of the leadership of bodies
with fiscal administration duties which administer the respective fiscal obligation, and in case of the
service of collection of local taxes and fees – on the basis of the decision adopted by the local council.

Article 174 Liquidation of the fiscal obligation through deduction

(1) The liquidation of tax liability through deduction shall be made where the taxpayer who is a physical
person, is:
a) deceased;
b) was declared missing;
c) was declared deceased;
d) was declared inept or partially inept.

(2) In all cases under paragraph (1) of this article, the tax liability shall be liquidated through the
deduction of the tax liability in full, where the above persons have not left (did not possess) any property;
or in the amount of the tax liability not paid off, where the left property is insufficient.

(3) The liquidation of the tax liability of a legal person shall be made through deduction where its activity
has been terminated as a result of its liquidation, inclusive of Courts decision, or through reorganization.

(4) The liquidation of the tax liability through deduction may be made based on the decision of the tax
body officials, where it cannot be recovered by the enforced collection, in accordance with the provisions
of the present Code. This decision of the territorial tax inspectorate on the execution of the tax liability
through deduction may be verified, changed or abrogated by the Principle State Tax Inspectorate. In case
of the service of collection of the local taxes and fees, the decision shall be adopted by the local council.

Article 175 Liquidation of the tax liability through compensation

(1) The liquidation of the tax liability through compensation shall be made where the amount of
payments made exceeds the amount of the tax liability or where the legislation provides for the refund
(compensation) of certain payments.

(2) the compensation shall be performed upon the initiative of the fiscal body or upon the request of the
taxpayer, if the fiscal legislation does not provide otherwise.

(3) within 30 days from the appearance of the respective circumstances or from the receipt of the request
of the taxpayer the fiscal body shall fill in the treasury payment order and transmit it to the State Treasury
for execution, in the way provided by the Ministry of Finances.

(4) Within 7 days from the date of receipt of the payment order, the State Treasury shall transfer,
depending of the case, from one budget account into another into another account of the same budget the
sums named in the payment order. After execution of the payment order, the State Treasury shall send to
the fiscal body the extract from the treasury accounts of incomes.

(5) After the extract from the treasury accounts of incomes has been received, the fiscal body shall make
the necessary inscriptions in the personal account of the taxpayer.

(6) the exceeding amount of the compensated sum, upon request, can be returned to the taxpayer or left
in the account of elimination of a future fiscal obligation of another type. In case of non-submission of
the request the exceeding amount shall be left for the elimination of a fiscal obligation of the same type.

(7) The excess of the compensated sum is reimbursed to the taxpayer or is used, according to the
provisions of the art.101 paragraph (5) or art.125 paragraph (5), in case of paying off the debts towards
the national public budget. For this purpose, the unpaid sum of the fiscal obligations in the amount up to
100 lei, inclusively, shall not be considered debt towards the national public budget.

Article 176 Refund of the sum paid extra and of the sum, which, according to the fiscal legislation
shall be refunded.

           a. Except for the cases when the fiscal legislation provides otherwise, the refund of the sum
              paid extra and of the sum which, according to the fiscal legislation shall be refunded to the
              taxpayer shall be done in the way and terms set at art 175 only if the later does not have
              arrears.
           b. Except for the cases in which the fiscal legislation provides otherwise, the refund of the
              sum paid extra and of the sum which, according to the fiscal legislation shall be refunded
              to the taxpayer legal person, shall be performed by the State Treasury at the bank accounts
              and the taxpayer natural person – to the bank accounts or in cash.
           c. If the sum paid extra or the sum which, according to the fiscal legislation shall be
              refunded have not been refunded within 37 days from the date of receipt of the request by
              the fiscal body or in another term provided by the fiscal legislation, the taxpayer shall be
              paid an interest, calculated depending on the basic share (rounded until the next full
              percent), established by the National Bank of Moldova in November of the previous year
              to the administration fiscal year, applied at refinancing of the commercial banks through
              repo operations of buying of state securities for a term of 2 months, for the period
              comprised between he date of receipt of the request and the date of compensation by the
              State Treasury.
           d. The calculation of the interest, performed and presented by the taxpayer to the fiscal
              administration duties body, shall be verified and approved by the leadership of this body
              and shall be annexed to the treasury payment order that provides for the payment of the
              interest. In case of local taxes and fees administered by the service of collection of local
              taxes and fees, the treasury order shall be performed by the fiscal body based on the
                documents presented by this service. The payment of the interest shall be done from the
                budget in which the respective taxes and fees have been poured.



Article 177 Liquidation of the tax liability through enforced collection

The liquidation of the tax liability through enforced collection shall be made by the tax bodies through
the application of measures of enforced collection in accordance with the fiscal legislation.

Article 178 The date of liquidation of the tax liability

(1) The date of the tax liability liquidation through payment shall be the date when the payments were
entered to the budget in the account of the respective fiscal liability (obligation). In case of payment
through bank cards, the date of liquidation of the tax liability shall be considered the operation day when
the card account was debited, from which the card used for payment was issued, of the taxpayer (owner
of the card) with the sum of the fiscal obligation. The debiting of the respective card shall be confirmed
through the payment receipt of bank card performed at POS terminal or other mean of se of bank cards,
receipt that shall be issued to the card holder.
(2) The date of the tax liability liquidation through cancellation (write-off) shall be the date indicated in
the write-off statement, which establishes the cancellation.
(3) The date of the tax liability liquidation through prescription shall be the first date following the
prescription date.
(4) The date of the tax liability liquidation through deduction shall be the date of:

a) a joint statement on absence of the assets of the person who is deceased or declared missing, incapable
or partially incapable made by the local public administration body and tax authority;
b) the final decision on the termination of a legal person’s activity.
c) a decision on the impossibility of the tax liability liquidation through enforced collection taken by the
tax administration officials.
(5) The date of the tax liability liquidation through compensation shall be the date of the execution of
payment orders by the State Treasury.
 (6) The date of the tax liability liquidation through enforced collection shall be the date of entering
payments to the respective budget account as a result of implementing the enforcement collection
measures.

Article 179 Succession in liquidation of fiscal liabilities

(1) The liquidation of fiscal liabilities, according to the fiscal legislation shall take place according to the
chronologic criteria of appearance of each type of fiscal obligation stated in the document regarding its
liquidation.
(2) In case of non respect by the taxpayer of the provisions of line (1), the fiscal body is entitled to
liquidate the fiscal obligation according to the succession of acts set at line (1).

Article 180 Modification of the term of liquidation of the fiscal obligation

(1) The term of settlement of a tax liability may be modified as:

a)    deferment - extension of the term of a tax settlement with a later payment of the debt in full;
b)    installment - extension of the term of tax settlement with a later payment of the debt by installment.

(2) In cases provided by the present article, the taxpayer shall have the right to defer or pay in the course
of two fiscal years its debts with or without calculation of interest on late payment.

(3) The debts shall be deferred without calculation of interest on late payment in case of:
a) natural calamities, technological catastrophes or other exceptional and inevitable circumstances that
caused significant material damages to the taxpayer.
b) enterprise restructuring pursuant to the Memorandum signed by the taxpayer and the State Creditors
Council in accordance with the rights and attributes of this body;
c) other circumstances provided by the law.

(4) The debts may be also deferred or paid by installment with calculation of interest on late payment in
other cases than those provided at line (3) with the condition of obligatory settlement of all current tax
liabilities.

(5) The debts are deferred or paid by installment, except for the cases provided at line (3), letter b) and
c), based on an agreement developed by Principle Fiscal State Inspectorate of the Republic of Moldova,
signed between the relevant territorial tax authority and the taxpayer. The agreement clauses, i.e. its
entering into force, deferment, amendment or cancellation, are provided by the agreement itself.

(6) In case of failure to comply with the debt deferral agreement, it shall be considered void from the
moment when the tax authorities note such infringement, and for the entire period of defer or installments
delay penalties shall be calculated.

(7) No new tax deferral agreements can be signed with a taxpayer that did not fulfill the previous
agreement 's provisions and did not provide proofs regarding the reasons of noncompliance.

(8) Measures of forced execution of tax liabilities shall not be applied until the new term, established by
deferment or payment by installment of the tax liability settlement, expires.

(9) The Parliament or empowered by it bodies may also establish other grounds and conditions of
modification through postponement or spacing out of the term of liquidation of the fiscal obligation.

Chapter 6
Responsibility of liquidation of the fiscal obligation

Article 181. Responsibility of officials for tax liabilities of economic agents

(1) The official who shall be liable for the fiscal obligation of the economic agent, is its leader or another
person, who, due to his work responsibilities was/is obliged to liquidate the fiscal obligation in the
established way and terms. In case when the taxpayer does not have an official responsible for the
liquidation of the fiscal obligation he shall do it himself.
(2) The official shall be liable for all the fiscal obligations of the taxpayer, regardless of the date of their
appearance.
(3) The fiscal obligations of the taxpayer for which the official person is liable in accordance with the
present article shall remain his obligations until their complete settlement.
(4) For the non fulfillment of the obligations provided by the present article and of other obligations
provided by the fiscal legislation, the official of the taxpayer shall be held liable in accordance with the
law.

Article 182 Responsibility of an official of the taxpayer who is obliged to retain or lift from another
person the taxes, fees, delay increases (penalties) and/or fines and to pour them into the budget.
(1) An official of the tax agent shall be responsible for making payments that the tax agent fails to
properly withhold, collect or transfer to the respective budget, provided the following conditions exist at
the same time:
a) withholding, collection or transfer of the payments are part of the official’s professional duties;
b) the official knew or should know about failure to withhold, collect or transfer by economic agent of
respective payments.
(2) The liability to retain or lift taxes, fees, delay increases and/or fines shall belong to the taxpayer
whose official person is obliged to retain or lift the taxes from another person and transfer them until the
moment when the taxes, fees, delay increases and/or fines should have been declared by the person from
which these were supposed to be lifted or retained or until their full liquidation in the rest of the cases.
(3) The fiscal obligations of the taxpayer for which its official person is liable in accordance with the
present article shall remain liable of the taxpayer until their full liquidation in case of retain or lifting of
the taxes, fees, delay increases and/or fines from other persons.
(4) For the non-fulfillment of obligations provided by the present article and of other obligation provided
by the fiscal legislation, the official person of the taxpayer shall be liable in accordance with the law.


Article 183. Responsibility of the owner of the property for tax liabilities of the person who transfers
such property

If a person which has arrears transmits a property to another person, and these are interdependent, the
person who receives the property shall be liable for the liquidation of the arrear in the amount of the
difference between the market value of the received property and the sum effectively paid for it.

Article 184. Responsibility for tax liabilities of economic agent in liquidation

(1) Tax liabilities of economic agents in liquidation shall be paid by the economic agent’s liquidation
commission from the account of the subject economic agent, and from the funds obtained as a result of
sales of assets belonging to the economic agent.

(2) In case of application of means of surpassing of insolvency, the tax liabilities shall be paid in
accordance with the respective legislation.

Article 185. Responsibility for tax liabilities in case of economic agent’s reorganization

(1) Tax liabilities of a reorganized economic agent shall be satisfied by its successor(s).

(2) Settlement of tax liabilities of the reorganized economic agent shall be imposed on its successor(s),
regardless whether the successor(s) knew or did not know about the facts and/or circumstances of failure
to honor fully or partially tax liabilities of the reorganized economic agent before the completion of the
reorganization process.

(3) Reorganization of an economic agent shall not change the timeframes for settlement of tax liabilities
by the successor(s) of the subject economic agent. In case of reorganization of the entity, its rights and
obligations shall pass to the newly created entity. Before being reorganized, the enterprise shall notify
about the fact the fiscal body, in which area it is located, for the performance of the fiscal control and
determination of the volume of successor rights and obligations of the newly created person.

(4) In case of more than one successor, the latter shall bear joint and individual responsibility for
settlement of tax liabilities of the reorganized economic agent within their interest in the assets of the
subject economic agent.
(5) Responsibility passed to the successor(s) of the reorganized economic agent shall become a tax
liability of the successor(s) and in case of its (their) reorganization is passed to its (their) successor(s).

(6) In case of merger of several economic agents, the economic agent created as a result of merger shall
be recognized as their successor for the purpose of settlement of the tax liabilities of these economic
agents.

(7) In case of association of two economic agents, the economic agent to whom the second economic
agent adhered shall be recognized as successor for the purpose of settlement of the tax liabilities of the
economic agent - adherent.

(8) In case of split of economic agent into several economic agents, the created economic agents shall
be recognized as successors for the purposes of settlement of the tax liabilities of the split economic
agents, within their interest in the assets of the split economic agent.

(9) In case of reorganization of the entity through split up, the reorganized person and the one created
after the split up shall be liable for the liquidation of the fiscal obligation within the limit of the share that
they hold.
10) In case of change of the legal form of the economic agent, the economic agent created as a result of
this reorganization shall be recognized as successor for the purposes of settlement of the tax liabilities of
the reorganized economic agent.

Article 186. Settlement of tax liabilities of individuals who are deceased, recognized deceased,
incompetent, partially incompetent or missing

(1) Tax liabilities of individuals who are deceased or recognized deceased in the established manner
shall be settled by each of his/her heirs to the extent of the inherited property and in proportion to his/her
share in this property.

(2) Tax liabilities of individuals who are recognized in the established manner as missing shall be
settled by the person entitled as guardian or trustee of the missing person, at the expense and within the
limits of the property of the missing person.

(3) Tax liabilities of individuals recognized by court as incompetent or partially incompetent shall be
settled by the person entitled as guardian or trustee of the person at the expense and within the limits of
the property of this individual.

(4) The amount of the tax liability that was not settled in accordance with the present Code, including
penalties and fines, due to the lack of property, is settled by the tax authority through deduction pursuant
to the Code provisions.

(5) If the Courts adopts a decision on the cancellation of recognizing an individual missing or deceased,
or if the person is recognized fully competent, previously written off tax liability is resumed, but no
penalties or interest are applied for the period in which the person was recognized missing, deceased,
partially or fully incompetent until a decision on the cancellation of the recognition is approved.


Chapter 7
Fiscal reporting

Article 187 Presentation of the fiscal report
(1) Any taxpayer shall file a tax report within the term established by the legislation for each due
payment unless otherwise is provided by the tax legislation.

(2) Except for the cases expressly provided by the fiscal law the taxpayer is obliged to present to the
fiscal body at whose evidence it is, fiscal reports regarding taxes and fees.

(3) As a rule, the fiscal report shall contain:
            a. The name (name and surname)of the taxpayer;
            b. The fiscal code of the taxpayer, and if needed the code of its subdivision;
            c. The fiscal period for which it is presented;
            d. The type of the tax or fee;
            e. The taxable object (taxable basis);
            f. The share of the tax or fee;
            g. Fiscal facilities;
            h. The sum of the tax or fee;
            i. Other data or information;
            j. Signature, certified with stamp, of the official persons – leader and accountant-in-chief –
                of the taxpayer or the signature of the taxpayer (his representative) or the digital signature
                applied in the manner set by the Government.
(4) A taxpayer or its authorized representative shall sign the tax report under the penalty of perjury.

(5) A tax report shall be considered presented at the date when the fiscal body receives it, if it is filled in
the manner set by the Government and drawn up in the manner regulated by the State Principal Fiscal
Inspectorate.

(6) Any tax report shall be considered received by the tax body under sub-paragraph (5) of the present
Article, if the taxpayer presents evidence in this sense: a copy of the fiscal report with the notice of the
fiscal body of its receipt, a receipt, issued by the fiscal body, a postal notice, etc.

(7) The instructions regarding the way of performing and presenting of the tax reports, including of the
unified ones, shall be issued by the Principle Fiscal State Inspectorate if the fiscal legislation does not
provide differently.


Article 188. Amended Tax Reports

(1) An amended tax report shall be a revised version of a tax report previously submitted by the
taxpayer.

(2) A taxpayer who discovers that a tax report previously filed by him/her or his/her authorized
representative, contains an error or omission that resulted in under- or over-statement of the taxpayer’s
liability shall have the right to file an amended tax report with calculation of interest for late submission
for the whole period, no fine for the understatement of the taxes to be applied.

(3) An amended tax report filed on or before the due date for a particular period shall be considered the
taxpayer’s report for that period.

(4) The amended tax report shall not be considered when making amendments to the main tax report
where:
a) it is filed later than the date set for the presentation of the fiscal report for the following fiscal period
if the fiscal legislation does not provide otherwise;
b) after the announcement of a fiscal control;
c) it is filed for a period due to a documentary verification or immediately after it;

Article 189. Calculation of Taxes and Fees by Tax Authorities

(1) The tax body shall calculate taxes and fees after the fiscal controls, except for the in-chamber fiscal
control, if violations of tax legislation were revealed as a result of tax audits or in other cases provided by
the tax legislation.

(2) Where in the course of audit it is impossible to determine the amount of due payments to the budget
because of the lack or negligence to accounting records or where the taxpayer’s official fails to submit all
or part of accounting records and/or tax reports, the calculation of the payments shall be made by tax
authorities based on indirect methods and sources, the due amounts to be recalculated after the
accounting records are restored in conformity with the legislation or after the respective documents are
presented.

Chapter 8
Evidence of the taxable objects and fiscal obligations

Article 190 General principles of keeping records of the taxable objects and of the fiscal
obligations


(1) Records of objects of taxation and payments are kept by the taxpayer with the purpose of evaluation
of the tax base, taxes and fees, the amount due and paid to the budget, unless otherwise provided by the
legislation.

(2) Keeping books or other documents which serve as the basis for accounting records of the objects of
taxation and payments to the budget shall fully reflect all the transactions related to the taxpayer's activity
and its financial situation.

(3) In cases when the tax authority computes the due taxes, it shall be also responsible for recording of
payments and objects of taxation by filling in the taxpayer's accounts, opened for each type of payment,
the information on the tax liability size, amendment and settlement and on the object of taxation as well.

(4) The inscription into the personal accounts of the taxpayer shall be performed in accordance with a
regulation, approved by the Ministry of Finances.

(5) The record keeping of the local taxes and fees for the taxable objects that are not located in the area of
the fiscal body at whose record the taxpayer is, shall be kept by the fiscal body in whose area the taxable
object is located. The evidence of the taxes and fees calculated by the services of collection of the local
taxes and fees shall be kept by these services.

Article 191. Notification on payment of tax liability

(1) The notification on payment of tax liability is a written notification, signed by the tax authority
officials requesting the taxpayer to pay the stated tax liabilities.

(2) The tax authority or other public authority with fiscal administration duties prepares and forwards to
the taxpayer the notification on payment of tax liability, except for the cases in which the calculation is
performed in accordance with the results of the fiscal controls.
(3) If changes have been made during the calculation of taxes, the tax authorities shall prepare and serve
an amended notification on tax liability in the manner established by the present Code.

(4) the type formulary of the payment notification shall be approved by the Ministry of Finances.

(5) the notification of payment of the fiscal obligation shall containe the following mandatory elements:
a) the name (name and surname) of the taxpayer;
b) the fiscal code of the taxpayer;
c) the date of its issue;
d) the type and terms of liquidation and the sum of the fiscal obligation;
e) address and fical code of the fiscal body or of another authority that has performed the payment
notification.

(6) The notification on payment of tax liabilities and arrears shall take effect on the date when served to
the taxpayer or tax agent indicated in the notification and shall be valid until cancellation thereof or until
all the indicated tax liabilities are paid.

Article 192 Time for serving the notification on payments

(1) The notification on payment of a tax liability shall be served to the taxpayer within ten days before
the expiration of the term set by the legislation for the indicated payments, if the fiscal legislation does
not provide differently.

(2) The fiscal obligations stated in the payment notification shall be liquidated in the terms provided for
in the notification.

(2) If the notification of payment has been issued to the taxpayer after the expiry of the term for
liquidation of the fiscal obligation, the delay increase and/or fine for its no liquidation at due time, shall
apply after the expiry of 10 days after the date at which the taxpayer has received the payment
notification.

Chapter 9 Enforced execution of tax liability

Article 193 Conditions for the enforced execution of tax liability

The following shall be the conditions for the enforced execution of tax liability:
a) existence of debt, taking into account the provisions of art 252;
b) non-expiration of the period of prescription set by the present Code;
c) non-contestation of the fact of existence of then arrear and its size in the cases provided at art 194 line
(1) letter c) and d);
d) the taxpayer is not in a process of liquidation (dissolution) or of application of measure to overpass the
insolvency process, according to the legislation.


Article 194 Procedures for enforced execution of tax liability

(1) Following below are the manners for enforced execution of tax liability:
a) collection of funds from the bank accounts of the debtor, except for those from the temporary credit
accounts (of accumulation of financial means for the formation or increase of the equity capital);
b) collection of cash from the debtor;
c) collection of the assets of the debtor, except for those named at letter s) and b);
d) collection of receivables in the manners stated by sub-paragraph a), b) and c) of this Article.
(2) Collection of the debtor's assets shall be performed by the arrest (seizure), sale or lifting.

(3) In case when the tax liability is not paid in full after the application of the enforced collection
procedure and further application of the enforced collection procedure is not possible, the tax authority
shall have the right to request the court to initiate bankruptcy proceedings. The tax liability of the
physical person who is not registered as a business entity and the period of limitation of which
has expired shall be repaid in the manner established by the present Code.

Article 174¹ Simplified closing of the fiscal obligation through subtraction
(1) In the absence of constitutive elements of the tax evasion offence or pseudo-entrepreneurship, the
fiscal body closes in a simplified way the fiscal obligation through subtraction to the taxpayers-physical
persons, following the terms of the current article.

(2) The fiscal body closes in a simplified manner through subtraction the fiscal obligation, according to
the art.174 paragraph (4), in case it establishes all the following:
a) legal entity has debts to the state budget and to the budget of the administrative-territorial unit and/or
to the compulsory medical insurance funds;
b) the legal entity is not a founder of a legal entity
c) the legal entity, during the last 24 consecutive months has not submitted the fiscal reports stipulated by
he legislation and did not carry out any operations through any bank account;
d) all the measures of forceful execution foreseen by the legislation have been applied to the legal entity
e) the legal entity does not possess any goods which can be followed for the execution of the fiscal
obligation

(3) The list of taxpayers the fiscal obligations of which have been closed in a simplified manner through
subtraction shall be presented to the State Registration Chamber by the State Main Tax Inspectorate in
order to start from the office the procedure of erasing from the State Register.

Article 195 Authorities authorized to carry out an enforced collection procedure

(1) The tax authorities shall be responsible for carrying out an enforced collection procedure, in the
manned set out by the present code.

(2) The Center for Fight against Economic Crimes and corruption, having rights of a fiscal body, shall
perform the forced execution of the fiscal obligation calculated by its bodies.

(3) The enforced execution of the tax liability shall not be allowed to other authorities, in the way
provided by the present code, neither directly nor indirectly through the means of the bodies specified at
line (1) and (2), except for the cases provided at art 156, line (2) and at art 157 line


Article 196 General rules for the enforced collection of payments

(1) The execution of the decisions adopted by tax authorities on forced execution of tax liability, shall be
carried out during workdays, between 6 am and 10 pm. The execution at other time shall be carried out
only when the taxpayer is avoiding it.

(2) If the taxpayer is not found on the known addresses, the tax authority shall apply to the appropriate
bodies to initiate a search of such person pursuant to the legislation.

(3) If the debtor changes his/her location (residence), the tax authority shall forward the file of the debtor
along with the decision on forced execution of tax liability to its new location (residence) for the purpose
of continuing the enforced collection procedure.

(4) If the taxpayer’s assets or debtors are within the jurisdiction of another tax authority, the enforced
collection procedure shall be carried out by the tax authority from the taxpayer’s location (residence) and,
if necessary, with the participation of the officers of tax authority and police from the area where the
assets are located or location (residence) of the debtor.

(5) The fiscal body is entitled to apply one or more measure of enforced execution of the fiscal
obligation. The enforced execution of the fiscal obligation in the way provided at art 194 line (1) letter
b), c) and d) shall be performed on the basis of the decision issued by the governance of the fiscal body
on a type formulary, approved by the Principle state Fiscal Inspectorate.

(6) The expenses related to the enforced execution of the fiscal obligation shall be performed from the
state budget and shall be recovered from the account of the taxpayer.

Article 197 Lifting of money means from the bank accounts of the taxpayer

(1) starting with the following day of the one when the arrear has appeared or when it was known about
its appearance, the fiscal body is entitled to forward treasury incasso orders to the bank accounts (except
for the loan account, temporary account (of accumulation of financial means for the formation or increase
of the equity capital) as well as of the accounts of the natural persons that are not subjects of the
entrepreneurial activity) of the taxpayer if he disposes of such and if the fiscal body knows about them.

(2) In case when the taxpayer has at his bank accounts money means, the financial institution is obliged
to execute, within the limit of these means, the treasury incasso order of the fiscal body within the
operational day in which it was received.

(3) In case when the taxpayer does not have financial means at his bank account in order to liquidate
completely or partially, the fiscal obligation, the financial institution shall forward to the fiscal body, in
the day of receipt, the incasso treasury order, mentioning on it the total or partial lack of means. In case
of suspension of operations at the bank account for the non-liquidation of the fiscal obligation, the
financial institution shall inform the fiscal body immediately about the inscription into the bank account
of the taxpayer of financial means. The procedure of lifting of the financial means from the bank
accounts shall be set by the National Bank of Moldova together with the Ministry of Finances.

(4) The provisions of the present article shall not apply in the case when in the bank account of the
taxpayer are inscribed financial means resulted from the selling of the pledged goods, within the limit of
the sums directed for payment of the expenditures related to the pledged good and within the limit of
rights than shall be paid from the sale of the pledged good.


Article 198 Collection of cash from the taxpayer

(1) The enforced execution of the fiscal obligation through lifting of cash from the taxpayer shall be
applied to the taxpayer legal entity or natural person, subject of the entrepreneurial activity.

   (3) For the purpose of collecting cash, including hard currency, the tax authority official shall check
       the places and premises used by the defaulted taxpayer for keeping cash, as well as its outlet
       network.
       (3) The cashier (manager) or other employee replacing him shall take part in the process of
       collection of cash as a representative of the debtor, by derogation from art 129 point 4). These are
       obliged to present the necessary documents and to ensure the free access to the safe of the cashier
       of the taxpayer, in the isolated room of the building, as well as in its commercial network.

       (4) Entry into the premises or places used by the taxpayer for keeping cash without the prior
       consent of the taxpayer’s representative or in his absence shall be allowed in the presence of two
       witnesses. The tax authorities shall keep sealed the premises and places where the cash is kept
       until the indicated witnesses will come.

       (5) Cases of entry into the premises and places without the taxpayer’s consent or his/her
       representative shall be noted in the respective records signed by the present persons. These
       records shall be prepared in two copies. The second copy of the records shall be handed to the
       defaulted taxpayer or its representative who shall sign the first copy or is forwarded on the same
       day or on the next workday by registered letter.

       (6) The collected cash shall be given by the tax authority official to the closest authorized
       financial institution, which shall receive and record such amounts directly on the respective
       budget accounts for the purpose of debt settlement. Foreign currency shall be given and converted
       at the current exchange rate set by the National Bank of Moldova on the day when the cash is
       given.

       (7) If it is impossible to give the cash to the financial institution on the day of collection, then the
       cash shall be transported to the tax authorities and given to the cashier’s department. The money
       shall be given to the financial institution on the next workday.

Article 190 General rules of seizure of assets

(1) The fulfillment of the decision of the fiscal body of seizure of the goods of the taxpayer shall be
performed, if the legislation does not provide differently, in the presence of the taxpayer (representative
of the latter), of his official person and in case the taxpayer is a natural person unregistered as subject of
the entrepreneurial activity – in the presence of the major member of his family.

(2) If the taxpayer (his representative), his official person avoid to be present at the seizure of goods, it
shall be performed without their consent or in their absence. The opening, without the consent of the
taxpayer (his representative), his official person, or in their absence of the buildings and other places
where the goods are located as well as their seizure, shall be performed in the presence of two assisting
witnesses.
(3) If the goods of the taxpayer are located at his domicile or residence or of other persons, the seizure of
the goods shall be done only with the consent of the taxpayer or of the person to which the domicile or
residence belongs.

(4) If the natural person does not allow the access in his domicile or residence for its goods to be seized,
the fiscal functionary shall note this fact in an act. In such cases the fiscal body shall file an action to
court. After the court would have issued a decision of enforced execution of the fiscal obligation, it shall
be fulfilled in accordance with the civil procedure legislation.

(5) If the taxpayer has not liquidated its fiscal obligation and if the actions of seizure of goods have not
been attacked within 30 workdays from the moment of seizure, the fiscal body is entitled to sell the
seized goods. In case when the actions of the fiscal body are contested the selling of the mentioned goods
in the contestation or in the court invitation shall be suspended until the solving of the case.

(6) In case when, as result of examining of the contestation or of the court invitation, from some of the
goods the seizure has been lifted, the fiscal body is entitled to seize other goods of the taxpayer.

(7) The goods seized by the fiscal body shall not be pursued by other public authorities, not even on the
grounds of a court decision.




Article 200 Seizure of goods as means of insuring the enforce execution of the tax liability

(1) Assets are seized based on the decision about forced execution of tax liability that shall have a legal
effect on all assets of the debtor, regardless of their location, except for the assets which, under the line
(6) provisions, cannot be seized.

(2) Assets are seized based on the decision of the fiscal body and shall be performed by the fiscal
functionary.

(3) Before the seizure, the debtor or its representative shall be forwarded a copy of the decision on
enforced collection and they shall be also informed in writing or orally about their rights and duties
during the forced execution of tax liability, as well as about their responsibility in case of failure to
comply with their duties.

(4) The debtor shall be required to present all owned assets based on ownership right or right for
economic administration, including assets that are temporarily stored or used by other persons, and
inform in writing:
a) what assets do not belong to him/her on the basis of ownership right and provide information about
the owners of such assets;
b) information on the assets owned, temporary used or stored by other persons;
c) information on the assets pledged or mortgaged before the debt appeared;

d) information regarding goods seized by other public authorities.

(5) The official of the tax authorities, for the purpose of locating the debtor’s assets, shall have the right
to investigate the places where they are located, and in case of domicile or residence – with the
agreement of the person to whom it belongs or based on the court decision.

(6) All the assets of the debtor shall be subject to seizure and sale, except for:
a)   perishable agricultural products, in accordance with the list approved by the Government;
b)   pledged or mortgaged assets before the appearance of the debt to the budget;
c)   assets of the physical person which, under the Civil Procedure Code, cannot be seized.
d)   assets seized by other public authorities;

e) other goods which, according to the legislation can not be seized;

(7) In all the cases, there shall be as many assets seized as needed for covering tax liability, payment of
taxes and fees related to the sale of seized assets and for recovering costs related to enforced collection of
payments.

(8) In order to determine the sufficient amount of goods subject to seizure, the initial value (seizure
price) of the assets shall be determined during the seizure in accordance with the accounting books and
records of the debtor. In case of persons who under the legislation are not required to keep accounting
records, the initial value (seizure price) of such assets shall be determined by the tax authority official,
taking into consideration their technical condition and other specifications. In order to determine the
technical condition of assets, experts shall be invited, as the case might be. The securities shall be seized
at their nominal value. The size of share in a company shall be determined based on the foundation
documents of this company.

(9) When determining the assets that are following to be seized, the tax authority official shall prepare
two copies of the list of the seized assets under the form approved by the Principle Fiscal State
Inspectorate of the Republic of Moldova. All participants to the seizure procedure shall sign each page of
the list.

(10) The list of the seized assets shall provide for a detail description of the name, number, amount,
essential specifications of each item included in the list and their price. With respect to securities, the
amount, issuer, nominal value and other information known at the time of seizure shall be indicated.

(11) After the assets are recorded in the list of the seized assets, a seizure statement shall be prepared in
two copies under the specimen determined by the STS of the Republic of Moldova, which shall be signed
by the participants to the seizure procedure. The first copy is handed to the debtor or its representative
that shall sign the second copy, which is kept by the tax authority.

(12) The seized assets shall be kept by the debtor or by the person who possessed them at the time of
seizure. In the latter case, it is allowed to give the assets for storage directly to the debtor who shall
accept them. Upon the decision of the tax authority official the assets can be given for storage to another
person on a contract basis. Jewelry and other golden, silver, platinum items and objects made out of
platinum-based metals, precious stones and pearls, as well as broken objects of this category shall be kept
by financial institutions authorized by the tax body. The person in charge for storage of seized assets
shall be the manager of legal or physical person in whose care the assets were left, another person who in
the absence of the manager fulfills his functions, if under the established manner they were notified about
the seizure of assets, or the person who was empowered with the function of keeping the seized assets
under his personal signature.

(13) A notice shall be forwarded to the debtor at the same time when preparing the statement of seizure,
indicating that the seized assets will be sold if the debtor fails to pay his arrears to the national public
budget within 30 working days of the seizure date.

(14) In case when the debtor (its legal representative) refuses to sign the seizure statement, the tax
authority official shall mark against its name: “Refused to sign.” The note of refusal shall be confirmed
as a rule, by the signature of the assisting witnesses. When there are no assisting witnesses, the fiscal
functionary shall sign it, and the copy shall be forwarded to the debtor by registered letter.

(15) If the debtor is not participating in the seizure procedure, this fact shall noted in the seizure
statement in the presence of two witnesses and a copy of this seizure statement shall be forwarded
together with the notice to the debtor by registered letter within 24 hours.

(16) In case of seizure of securities, the fiscal body will submit a copy of the seizure act to the
independent registrar or to the person who keeps their record. These will sign the respective registry
immediately after the receipt of the copy, the seizure of the securities.

(17) In case when the debtor does not have the assets that can be seized under the effective legislation,
the tax authority official shall prepare a statement recording the absence of such assets.


Article 201 Seizure of the debtor’s assets held by other persons

(1) Assets that are held by other persons on the basis of borrow, lease, or storage agreements shall be
included in the list of seized assets based on the appropriate documents available from the debtor. After
the seizure statement is signed, a notice shall be forwarded to the person which holds the assets
indicating that the debtor’s assets are under seizure and that he/she shall secure these assets and cannot
transfer them to any third parties, including the debtor without the prior tax authorities’ consent. If
necessary, the examination of assets shall be conducted at the place where they are located.

(2) If as a result of some examinations was noted that the debtor’s assets are held by another person, and
were not seized before, this person shall be notified that these assets are under seizure and he/she shall
secure and cannot transfer them to any third parties, including the debtor without the prior tax authorities’
consent. A list of these assets shall be prepared at the same time, with each page signed by the tax
authority official and the holder of the assets or its representative.

(3) After the list of assets seized from the person who possesses them is signed, the tax authority official
shall verify them based on the accounting books and records kept by the debtor. A seizure statement shall
be prepared after the list is specified.


Article 202 Seizure lifting

(1) The seizure is lifted in case of:
a) documentary confirmation of full or partial payment of tax liability;
b) full or partial payment of tax liability and recovery enforced collection costs, by other means of
enforced collection procedure;
c) seizure of other assets that have a good market demand in order to expedite the payment of the due
debt;
d) sale, alienation or disappearance of assets;
e) impossibility to sell the assets;
f) issuing a decision by the authority that reviews the claim in the event of infringement of the seizure
procedure;

g) conclusion of a contract with the fiscal body regarding the modification of the term of liquidation of
the fiscal obligation.

(2) In case when the seized assets are not kept by the defaulted taxpayer, the tax authority shall return
the assets after the seizure is lifted. The assets shall not be returned after the right for their ownership is
transferred to the buyer who purchased them in the manner established by the present Code.

(3) If the tax liability is paid in part, the seizure shall be lifted only from the assets which value
significantly exceeds the unpaid part of the tax liability. The degree by which the value of these assets
exceeds the unpaid part of tax liability shall be determined based on the taxes and fees related to the sale
of assets and anticipated costs related to the enforced collection procedure.


Article 203 Sale of the seized assets

(1) The seized assets are sold at auctions organized in accordance with the provisions of chapter 10.
(2) Evaluation and commercialization of taxpayer’s sequestrated goods, except those stipulated in the
paragraph (7), (8), (9) and (15), is organized by the fiscal body.

(3)For performing evaluation of goods and their commercialization at tender, the State Central Tax
Inspectorate selects persons - holders of license for the respective activity, conclude with them contracts
and distribute the materials for evaluation. The payment for the services rendered by these persons
cannot exceed 10% from the financial means obtained from commercialization of sequestrated goods.

(4) The seized goods shall be sold at an auction through shouting. If at the shouting auction no participant
has registered or if goods could not be sold, the fiscal body, within 30 days from the moment of expiry of
the term of inscription of the auction at which no participant registered or of performance of the auction,
will announce a discounted auction.

(5) In case of registration of only one participant to the auction, the selling shall be done on the basis of a
contract with the fiscal body at a price that shall not be lower than the initial price, and at the discounted
auction, the selling shall be done based on a similar contract with a price reduced with at most 10% from
the initial price.

(6) The selling of lands on which closed water pools, buildings, constructions, installations and other
objects are located, which can not be moved without causing direct damages to their destination and to
the related land, necessary to their normal use, shall be performed in accordance with the legislation.

(7) The expertise, evaluation and selling of seized goods of the taxpayer that are part of the fix funds of
the enterprises and other objects comprised in the privatization program in which the state possesses
more than one quarter from the equity capital shall be organized by the Agency of Privatization by the
Ministry of Economy and Trade, in the way established for the privatization of the public estate.

(8) The selling of the seized securities shall be performed in accordance with the legal regulations with
regard to the circulation of the securities and with an instruction approved by the Principle Fiscal State
Inspectorate and by the National Commission of the Financial Market, without payment of the account.

(9) the seized goods qualified as security market assets, shall be sold through the Securities’ Market in
the way set up by the Government.

(10) Within 3 days before the date of the auction, the taxpayer is allowed to commercialize the
sequestrated goods at a price not lower than the initial price of commercialization established by the
fiscal body, provided the transfer of the sums of obtained means directly to the account of fiscal
obligation liquidation and of the recovery of expenses of forced execution.

(11) Proceeds obtained from sale of seized assets shall be used to first cover the costs related to the
enforced collection activities, and then sums due to respective budgets in the order established by the
present Code, taxes and fees related to the sale of seized assets. The money shall be transferred to the
budget, mentioning the bank account of the taxpayer. In the treasury payment order one shall state the
buyer as payer, beneficiary – the respective budget, and at the destination of payment – one shall state,
with reference to the present code, the account on which taxpayer the transfer is being performed. The
exceeding amount shall be reimbursed to the taxpayer.

(12) In case where the seized assets are not secured, are alienated, substituted, hidden, deteriorated,
disassembled or misused, the legislation provisions shall apply. The taxpayer, its representative or the
person who stored the seized assets shall not be liable for losses occurred within natural loss or loss as a
result of force majeure.

(13) As regards the taxpayer, the sale of seized assets under this Code shall be interpreted as sales,
supplies of goods with all the resulting consequences, including the obligation to provide a VAT invoice
and pay respective taxes.

(14) If at the discounted auction no participant registered or if the goods could not be lost, the fiscal
body, within 30 days from the moment of expiry of the term for registration for the auction to which no
participant has registered, shall announce a repeated action. If this time no participant will register or if
the goods are not sold, the fiscal body will lift the seizure of the non-sold goods.

(15) By derogation from the provisions of the present article and of art 204, the selling of the seized
assets, he value of which according to the sequestration documents constitutes less than 10.00 lei (except
for the means of transport, stocks and shares, of the goods considered stock-exchange goods with the
value of the lot higher than 10000 lei), shall be performed by the means of the commercial units The way
of lifting, handing in, evaluation, selling of the mentioned assets and the pouring into the budget of the
cashed sums shall be established by the instruction of the Principal State Fiscal Inspectorate.

Article 204 Lifting of the goods

(1) After the signature of the sell-buy contract, the fiscal body shall lift the seized goods and shall hand
them in to the buyer. By derogation from art 203 line (10), the excisable goods shall be lifted given that
the excise tax is paid in accordance with the fiscal legislation. From the moment of signature of the act of
lifting of the seized goods, the property rights over these shall pass to the buyer, and the related expenses
of storage and transportation of goods, of performance of property titles shall be handled by the new
owner.

(2) In case when the taxpayer or the participants to the auction contest its results due to the breach of the
procedure of registration or development, the seized goods shall not be lifted. In such cases, the lifting of
the goods shall be performed after the solving of the litigations. If, after the seizure of goods, the results
of the auction are annulled in accordance with art 213 line (7), the buyer is obliged to return those goods.

(3) The transaction in whose results the seized goods have been alienated without the written permission
of the fiscal authorities can be declared void by the court from the moment of their conclusion. The
liability for the losses handled it shall be bourn by the taxpayer or the person who has alienated the goods
or decided for their alienation.

(4) The lifting of the seized goods shall be performed in the presence of the taxpayer (his representative),
of his official person and of the buyer (his representative). In case on groundless absence of the taxpayer
(his representative), of his official person, the seizure of the goods shall be performed in the presence of
two assisting witnesses. In case of impeding of the action of seizure of goods, the fiscal body shall
perform their forced lifting.

(5) If some goods are lacking, are substituted or are seriously damaged, from the list of the seized goods,
the fiscal body is obliged to hand in to the criminal investigation bodies, except for the situations when
the buyer has accepted them at the price from the sell-buy contract.

(6) If the goods of a taxpayer have been sold to more buyers, their lifting shall be done separately for
each buyer.

(7) An act in 3 copies shall be worked out, regarding the issue of lifting of the goods. A third copy shall
be handed in, against a signature, to the taxpayer (his representative), his official person, the second – to
the buyer and the first one – will remain at the tax body who lifted the goods.

(8) when lifting goods seized in at most 24 hours after the signing of the lifting act, the taxpayer (his
representative), or his official person, the taxpayer (his representative), or his official person are obliged
to submit to the fiscal body or directly to the buyer all the documents related to the lifted goods if such
documents have not been lifted by the fiscal body at the same time with lifting of the goods.

(9) Based on the act of lifting of the goods, the taxpayer shall perform the accountant inscriptions related
to their selling

(10) Based on the sell-buy contract, on the act of lifting of the seized goods and of the certificate of
integral payment issued by the fiscal body, the buyer registers, at the resort bodies, in cases provided by
the law, the seized goods. The buyer can use the goods until their registration (except for taking them out
from Moldova) based on the contract of buy-sell and of the act of lifting. After the expiry of the payment
term set in the sell-buy contract, the goods can not be further used based on the mentioned documents.

Article 205 Enforced collection of receivables

(1) Collection of receivables from the debtors that are located on the territory of the Republic of Moldova
shall be carried out in accordance with the procedure for the enforced collection of tax liability from the
taxpayer according to the list of debtors presented by the taxpayer or based on any other information held
by the tax authorities. Under international treaties, receivables can be collected from debtors outside the
borders of the Republic of Moldova, as well as from local debtors in favor of foreign taxpayers.
(2) Enforced collection of receivables shall be made regardless of the debtor's own tax liabilities.

(3) For the purpose of enforced collection of receivables, the debtor shall be required to file with the tax
authorities a list of debtors signed by the director and chief-accountant. Upon the tax authorities’ request,
the data from the list shall be confirmed by the respective documents. The list of debtors shall include:
a) full name of the debtor, TIN number, office address and telephone number;
b) bank accounts of the debtor; name, address and code of the financial institution where the accounts
are open;
c) date of incurring of debts, their total amount and the payments deadline;
d) measures undertaken for payment of receivables;
e) date of last reconciliation, if any.

(4) Based on the data provided by the taxpayer, the tax authorities shall check if the deadline for
payment of receivables has expired and if the taxpayer is entitled to a refund. If the right for refund is
confirmed, a notice shall be send to the persons, from who debit amounts can be levied through enforced
collection, notifying them that as of the date of receipt of such notice the amounts owed to the taxpayer
are seized within the limits of the tax liability of the taxpayer and that they are obliged to pay this tax
liability.

(5) The person who received the notice shall within 10 days confirm or deny, fully or partially, the
amount owed to the taxpayer specified in the notice. If the amount is denied, copies of the documents
confirming the payment of debts must be attached to the letter.

(6) If the receivable amount of the taxpayer was confirmed or denied, without confirming documents
attached, and if after 10 days from the service of the notice the tax authorities did not receive any reply to
the notice, then the fiscal body is entitled to apply to the debtor, in the corresponding way, the ways of
enforced execution of the fiscal obligation enumerated at art 194 line (1) letter a), b) and c).


Article 206. Impossibility to execute the enforced collection procedure

The enforced collection procedure shall be considered impossible if:
a) the liquidated company does not have any successors;
b) the person who is engaged in the entrepreneurial activity is declared bankrupt and does not have any
assets;
c) the physical person who is not engaged in the entrepreneurial activity does not have, assets that could
be seized under the present Chapter ;
d) the physical person who is not a subject of entrepreneurial activities and left his/her home, cannot be
located and there are no assets available that could be seized under the present Chapter
e) the physical person deceased and there are no persons that are required under the law to honor his/her
tax liabilities.
(2) the sum of the tax liability whose enforced execution is impossible, as well as the sum of the fiscal
obligations liquidated by deduction according to art 174 line (1), (2) and (4) shall be taken to special
record, in the way provided by the Ministry of Finances, until the expiry of the prescription term. In cases
provided at art. 186 line (5), the sums taken to special record shall be re-established.

Article 207. Keeping records of the enforced collection

(1) Tax authorities shall keep records of the enforced collection activities in the established manner,
such records shall not be accounting records.

(2) On the day of signing or no later than the following business day, the documents confirming the
undertaken actions shall be registered by the tax authorities in the electronic form or on paper in special
registers maintained in the manner as established by the State Tax Administration within the Ministry of
Finance.

(3) A file of the taxpayer who was subject to the enforced collection procedure shall have all
documents related to such procedure including: a decision of the tax authority on the enforced collection
of the tax obligation, payment notices and orders, a seizure note, minutes of the auction results, a sale and
purchase agreement, correspondence with the taxpayer and with other persons, other documents related
to the taxpayer.

Chapter 10

Organizing of the auction of seized goods

Article 208 Organizing the evaluation of the seized goods

(1) After the goods’ seizure, the ulterior organization of the expertise, the evaluation and sale of the
goods is charged with to the permanent commission, except for the expertise, evaluation and sale of the
immovable funds of enterprises, institutions and state organizations, as well as of the enterprises and
other objects included into the privatization process.

(2) In order to solve the problem of performing of the expertise, evaluation of the goods, admission or
nomination of organizers of the auction, the president and the secretary of the permanent commission
shall call for a sitting. The expertise and the evaluation of the seized goods can be performed by
specialists in the field, contracted by the privatization commission.

(3) the organizers of the auction shall be: the fiscal body and the persons that hold a license for the
respective activity, admitted by the permanent commission on basis of competition.

(4) On the basis of the expertise materials and of the evaluation materials of the goods, the permanent
commission shall set the initial sale price, forming sets of goods that shall be sold at the auction.
(5) The fiscal body shall transfer to the beneficiaries, from the state budget, the money aimed at the
financing of the expenses of enforced execution of the fiscal obligation. After the sale of seized goods,
these expenses shall be recovered in a priority way.




Article 209 Organization of the auctions

(1) In order to organize the sale of goods, the expert shall forward the fiscal body the files regarding the
goods’ sets. A report shall be drawn up regarding the give-receive operation.

(2) Tax authority leadership shall:
a) review the batches files;
b) approve the document on the initial selling price for each separate batch, if the expertise and
evaluation of the goods were performed by specialists in the field;
c) decides upon the taking of goods to the auction;
d) approve the informational notice on conducting the auction;
e) approves the composition of the auction commission and nominates its president;
f) determined the way of sale of the seized property;
g) in case of appearance of a litigation, nominates a representative for the protection of its interests in the
court.

(3) The fiscal body is entitled to:

a) to verify the fulfillment of its decisions and monitor the evaluation process and sale of the seized
property;
b) to examine the claims and contestations regarding the correctness of the development of the auctions
of sale of seized property;
c) to declare void the results of the auction in case of contestations of some deviations or violations of the
regulations regarding the preparation and development of the auctions, as well as in case when the buyer
does not pay for the batch in due time. In such cases, a new auction shall be announced – with shouting
or discount.

(4) The decisions regarding approval of the prices of seized goods and their placement for
commercialization are emitted by the fiscal body. The informative notices of the fiscal body regarding
the placement of seized goods for commercialization is approved by its leadership.

(5) The informative notice regarding the development of the auction shall be published in the Official
Journal of the Republic of Moldova and shall contain:

a) date, time and place of auction;
b) full name and location of objects put up for auction;

c) information regarding the owner of the goods;
d) information regarding the land on which the immovable gods are located and the conditions of use of
the land by the owner;

e) terms of sale of goods;
f) information about form of payment, conditions of spaced out payment, if it is stipulated by the fiscal
body.

g) manner of familiarization with the objects put up for sale;

h) terms of registration and participation in the auction;

i) final deadline of receipt of the registration requests, proposals and other documents for participation at
the auction;

j) information regarding the need to submit a 10% account of the initial selling price of the goods and the
bank account to which this shall be poured.

k) contact information of the auction commission, of the fiscal body and of other organizers of the
auction;

l) other relevant information.

(6) The auction shall take place at least 15 days after the publication of the informative notice.

(7) The auction is usually held in the county where the tax authority that seized the assets is located. The
person which stores the goods is obliged to insure the public access to them.

(8) The assets shall be put up for auction, if two or more participants are registered at the auction.

Article 210 Auction commission

(1) For commercialization of the sequestrated goods, at each auction is formed a commission composed
of at least 5 members among the representatives of the fiscal body and of the local public administration
authorities and independent experts. The representatives of the fiscal body and of the local public
administration authorities are proposed by their leadership. The independent experts can be proposed by
the taxpayer or other persons interested in the sale of goods taken to auction. The composition of the
commission is approved through order by the fiscal body leadership. The auctioneer is not member of the
auction commission.

(2) The sitting of the auction commission shall have a quorum if at least two thirds of the commission
members attend the meeting. The decision shall be adopted by open vote, based on the simple majority of
votes. In case of equal number of votes, the commission adopts the decision voted for by its chairman.

(3) The auction commission shall:
a) receive and verify the documents related to the batches put up for auction;
b) prepare all documents needed to conduct the auction;
c) provide information for the notice on the organization of the auction;
d) organize the process of familiarizing with the objects put up for auction;
e) organize the auction;
f) control the fulfillment of conditions for participation in the auction and guarantee the rights of the
buyers;
g) conduct direct negotiation in case there is only one buyer;
h) inform the mass media on the auction results.
Article 211 Conditions for participation at the auction

 (1) At the auction are entitled to participate the persons that submitted in due time the request for
participation, presented the necessary documents and paid in the established manner, the 10% advance
from the initial price of goods.

(2) Those who wish to participate in the auction shall present the following documents to the fiscal body:
a) participation request of an established form;
b) copy of the payment document that confirms the advance transfer to the bank account indicated in the
informative notice about the carrying out of the auction;
c) mandate, which gives the right to perform sell-buy contract.

(3) The receipt of requests and documents shall be closed 3 days before the auction date.

(4) The data regarding the persons who have submitted participation requests and their number is
confidential.

(5) At least two days before the date of the auction, the fiscal body shall present and the auction
commission shall examine the documents stated at line (2). After examination, the auction commission
shall register as participant to auction the person who has submitted a request or can also turn down the
request if the applicant has not respected the provisions of the present code related to the draw up and
presentation of the documents. The reason of turning down the request the commission shall state in the
decision, which it will communicated to the referred person. In this case, the account shall be returned to
the latter.

(6) The person is entitled to withdraw its application, submitting a written request, 3 days before the
auction date. In this case the account shall be refunded.

(7) If only one participant was registered, the auction commission shall conduct with him in the day of
the auction direct negotiations. After the price of sale of goods has been set and after the signature of the
report regarding the results of the negotiations, the materials shall be transmitted to the fiscal body that
organized the auction in order for the sell-buy contract to be concluded.

(8) If no participant registered for the auction, the documents of the auction shall be transmitted to the
fiscal body in order to perform the actions provided by the fiscal legislation.

Article 212 Holding the auction

(1) The registration of participants shall close 10 minutes before the start of the auction procedure.
Participants that failed to show on indicated time will not be allowed to the auction.

(2) The auction shall be conducted by one auctioneer assigned by the organizer of the auction on a
contract basis.

(3) Bidding of each lot shall start with announcement by the auctioneer of its initial price and the step for
increasing the price. The participant who accepts the initial price shall confirm his/her decision by
raising his/her card. After the participant raised its card, the other participants may attempt to buy this lot
only by offering a higher price by one or more steps. If nobody bids a higher price after the auctioneer
cries three times the accepted price, the auctioneer announces with the hammer the sale of the subject lot.
(4) The participant to the auction who won the lot shall sign the minutes on the auction results prepared
under the form established by the Principal State Tax Inspectorate of the Republic of Moldova.

(5) The participant who won the lot but refused to sign the minutes on auction results shall be deprived of
the right to participate in this auction, and the auction shall be reopened at the price offered by the
previous participant. The price shall be cried out again three times. In this case the participant who
refused to sign the minutes will not be refunded his down payment.

(6) According to the decision of the permanent commission, the goods which were not requested at the
auction with shouting shall be taken to a discount auction. The auctioneer shall start the auction of each
lot by announcing the maximum price, which will be the initial price of the shouting auction, and of the
step for reducing the price. The reduce step of the price ca not be larger than 5% of the price.

(7) If the reduced price has been shouted 3 times and no participant expressed the will to buy the lot, the
auctioneer shall reduce the price with one more step, declaring each time the new price.

(8) The auctioneer shall reduce the price until one of the participants shall agree with the proposed price,
requesting to him to confirm the offer naming the amount for which he is ready to buy the lot. In case of
confirmation, the auctioneer shall shout the price 3 times, fixing the fact of sale by a hammer hit. If
another participant wants to buy the lot, he is entitled to increase the price with a step or more steps,
declaring his intention, while repeating the price, until the hammer hit, and shall confirm the offer by
raising the participant ticket. In such a case, the discount auction shall pass into a shouting auction.

(9) The reduce of the price shall continue until it reaches zero, after which the lot shall be taken to
auction. The permanent commission can set a threshold up to which the price can be reduced for certain
lot.

(10) If the auctioneer, the president or any member of the auction commission will establish the violation
of the auction procedure, they will suspend the auction at any moment until the auction commission shall
decide regarding the continuation of the auction or taking the lot out of the auction.

(11) The participant to the auction with discount who won the lot is obliged to sing the report regarding
the results of the auction. If he refuses to sign, the participant is deprived of the right to participate at this
auction, that will recommence from the price accepted by him. The participant who refused to sign the
report will not be refunded the account.

(12) If the auction of the lot is declared void due to reasons provided in this code, a report of the auction
shall be drawn up, on the type-formulary approved by the Principal Fiscal State Inspectorate. In such a
case, the participants on whose fault the auction has been declared void will not be allowed to ulterior
auctions at which the lot who’s auctioning was declared void was exposed. They will not be refunded the
account either.


Article 213. Conclusion of the sell-buy contract and payment of the price of the lot

(1) The concluding the auctioning of a lot, the auction commission will negotiate directly with the winner
of the lot with regard to the way and terms of payment, fact that shall be consigned in the report
regarding the results of the auction. After signing, one copy of the report shall be given, within 24 hours,
to the taxpayer.

(2) In case when the auction commission and the buyer have agreed that the payment of the lot will be
performed in one installment, the latter pays integrally the lot within 7 days from the moment of
signature of the sell-buy contract.

(3) In case when the auction commission and the buyer agreed that the payment of the lot will be made in
installments, within 7 days the buyer shall make the first installment, of at least 40%, of the price stated
in the report, and the rest of the money, in the time set in the sell-buy contract, which will not surpass 60
days from the moment of conclusion of the auction. For this period, the buyer shall pay a delay increase,
calculated, in the set way, for the installed sum, according to the period of installments, and the taxpayer
is released from the delay payment.

(4) Foreign citizens and apartheids, persons who do not have relations with the budgetary system of the
Republic of Moldova shall pay the lot entirely within 7 days from the moment of signing of the sell-buy
contract.

(5) When purchasing the lot, the account (advance) submitted by the buyer shall be included into the sum
set in the sell-buy contract. With the exceptions set by the fiscal legislation, the other participants will be
refunded their accounts within 3 workdays from the moment of conclusion of the auction.

(6) The accounts which were not refunded according to the present code shall be considered income of
the taxpayer whose goods where taken to auction and are used for the recovery of the expenses of
enforced execution, for the payment of the arrears to the respective budgets.

(7) The tax authority shall have the right to cancel the auction results if the buyer does not make the
payment of the price of the lot within the established deadline. In this case, the assets shall be put up for
sale at a new auction at the initial price from the last auction and the sum of down payment shall not be
refunded.

(8) The sell-buy contract shall be concluded within5 days from the conclusion of the auction or of the
direct negotiations. If after the conclusion of the sell-buy contract, the buyer refuses the goods, their
auction shall be considered void. In such a case the goods shall be taken to a new auction, with shouting,
or respectively, with discount, and the account shall not be refunded.

(10) The auction results can be contested in the manner established by the law and court.


Chapter 11 Tax audit

Article 214 General principles of tax audit


(1) The purpose of a tax audit is to verify the taxpayer’s compliance with the effective tax legislation
during the audit period.

(2) A tax audit is conducted exclusively by the tax authority within its competence as provided by the
tax legislation and it can be a field audit or and /or an office audit.

(3) The tax audit is a complex of methods and operations of organization and development of the audit,
as well as of evaluation of its results. It is conducted by the actual checking of documents using the
following methods: office, actual, documentary, general, current, unexpected, topical, repeated, cross
audit and partial audit. The concrete methods and operations used while organizing and performing of the
tax control shall be determined, on the basis of the present code, in the regulations of internal use of the
Principal Fiscal State Inspectorate.
(4) The activity of the taxpayer can be subject to audit for not longer than the prescription terms, set at art
264 for the determination of the fiscal obligation.

(5) Within the tax control on the spot or in the office, the bodies specified at line (2) are entitled to
request from other persons any information and documents regarding their relations to the respective
taxpayer.

(6) The bodies with fiscal administration duties can perform a fiscal audit repeatedly, in case when the
results of the previous fiscal audit are not conclusive, incomplete or unsatisfactory or if, ulterior, have
been discovered circumstances that show the existence of signs of fiscal violations and, as result, a new
fiscal audit is needed.

(7) the repeated fiscal control can be performed within the examination of contestations against the
decision of the fiscal body or of the actions of the fiscal functionary, and in other cases, upon the decision
of the leadership of the bodies mentioned at line (6).

(8) The repeated tax audit can not be performed on the spot for the same taxes and fees for the fiscal
period which was previously due to audit, except for the cases when the performance of the tax audit is
imposed by the reorganization or liquidation of the taxpayer, is related to the inspection of the activity of
the fiscal body by a superior body, by the activity of the fiscal posts or by the discovery, after the
performance of the control of some signs of fiscal violations, when this is an audit by contraposition,
when the control is performed at the request of the law enforcement bodies and of those specified at art
131 line (5), when the need appeared after the examination of the case regarding the violation of the tax
legislation or as result of the examination of the contestation. As ground for performance of the repeated
tax audit on the spot, related to the inspection of the activity of the fiscal body by the superior body, can
serve only the decision of the latter, with the respect of the present article.

(9) A tax audit is usually conducted during the business hours of tax authorities, and/or of the taxpayer.

Article 215 Office tax audit

(1) The office tax audit shall be conducted at the office of tax authorities by verifying the compliance
with procedures for developing tax reports and accuracy of calculations, of other documents submitted by
the taxpayer, which serve as ground for the calculation and payment of the taxes and fees, of other
documents that the fiscal body or other relevant authority possesses, as well as for the verification of
circumstances relating to the respect of the fiscal legislation.

(2) The office tax audit shall be conducted by the tax functionaries or officials of other bodies with fiscal
administration duties according to their work obligations, without adopting a written decision on the
referred object. The tax audit shall be performed within at most 3 months from the date of submission by
the taxpayer of the fiscal report, or of another document provided by the fiscal legislation, if the latter
does not provide otherwise.

(3) When discovering some errors and/or contradictions between the indicators of the report and the
presented documents, the fiscal body that performed the audit is obliged to communicate about it to the
taxpayer, requesting, at the same time, the modification of the respective documents in the established
time.

(4) By derogation from the provisions of lines (2) and (3), in case when the discovery of the fiscal
violation is possible within the office fiscal auditing, with no need to audit on the spot, the fiscal
functionaries or the officials of other bodies with fiscal administration duties can draw up the fiscal
control act, with the respect of the provisions of art. 216 lines (6) and (8).

Article 216 Tax audit on the spot

(1) The tax control on the spot aims at the verification of the respect of the fiscal legislation by the
taxpayer or by another person due to control, which shall be performed on the spot of their location by
the tax functionaries or by officials from other bodies with fiscal administration duties. In case when the
taxpayer or another person due to auditing does not have an office or his office is located at his domicile,
in other cases when there are no adequate conditions, the mentioned tax audit shall be performed at the
office of the fiscal body that performs the tax audit, with the respect of all provisions of art 145 lines (2)
– (6), including the mandatory draw up of an act of lifting from the taxpayer of necessary documents.

(2) the fiscal control on the spot can be performed only based on a written decision of the leadership of
the body that performs the control. The need to perform the verification by contraposition at some
persons with which the taxpayer has or had economic relations, in order to establish their accuracy, shall
be determined, independently, by the fiscal functionaries or other official person who controls the tax
audit

(3) The tax audit on the spot regarding one taxpayer can comprise one or more types of taxes and fees.
Within one year only one tax audit on the spot for the same taxes and fees for the same fiscal period is
allowed. This restriction shall not extend over the cases when the tax audit is imposed by the
reorganization or liquidation of the taxpayer, is related to the inspection of the activity of the fiscal body
by a superior body, by the activity of the fiscal posts or by the discovery, after the performance of the
control of some signs of fiscal violations, when this is an audit by contraposition, when the control is
performed at the request of the law enforcement bodies and of those specified at art 131 line (5), when
the need appeared after the examination of the case regarding the violation of the tax legislation or as
result of the examination of the contestation.

(4) The duration of a tax audit on the spot shall not be longer than 2 months. In exceptional cases the
leadership of the body who performs the tax audit can decide upon the prolongation of the duration with
at most 3 months or to stop the audit. The period of suspension of the tax audit and presentation of the
documents shall not be included into the duration of the tax audit, the latter being calculated from the day
of commencement until the day of singing the respective act, inclusively.

(5) At the conclusion of the tax audit on the spot, an act of fiscal audit shall be drawn up. At the fiscal
posts the fiscal control act shall be drawn up only in case of discovery of a fiscal violation. In case of a
fiscal violation, the fiscal body shall take the corresponding decision. By derogation from the provisions
of the present line, if the fiscal violation is discovered by the service of collection of local taxes and fees,
the respective decision shall be issued by the fiscal body with the respect of the provisions stated at art
159 line (2).

(6) The act of tax control is a document drawn up by the fiscal functionary or other official person of the
body that performs the auditing, in which the results of the audit shall be stated. In the act, the violations
of the fiscal legislation shall be described objectively, clearly and precisely, and/or the way of evidence
of the taxation objects, with reference to the respective evidence document and other materials, stating
the normative acts breached. In this act each fiscal period shall be reflected, specifying each fiscal
violation identified in them.

(7) The tax audit on the spot, for the branch offices or representations of the taxpayer, initiated by the
fiscal body shall be organized and performed by the state fiscal inspectorate I whose area of service the
taxpayer is located, with the participation of the fiscal state inspectorate in whose service area the branch
office is located.
(8) the taxpayer, including by the means of the leader or other representative, is obliged to, depending on
the case, to insure adequate conditions for the performance of control, to participate at the performance of
the control and to sign the act of tax audit, even in the dace of disagreement,. In case of disagreement, he
is obliged to present, in written, within 7 days, the arguments for disagreeing, attaching the necessary
documents.

Article 217 Actual tax audit

(1) The actual tax audit shall be conducted on the site through direct overseeing of the objects, processes
and facts, examination and investigation of economic and financial activities in order to determine the
fulfillment of tax liability.

(2) The actual tax audit is designed to note situations that do not result from existing documents.

Article 218 Documentary tax audit

(1) The documentary tax audit is conducted both in the office and by going to the inspected site. It
consists of confrontation of fiscal reports, evidence documents and other information presented by the
taxpayer with the documents and information related to it which the fiscal body possesses.


Article 219 General tax audit

(1) The general tax audit shall be conducted with respect to all the documents and operations in order to
determine the objects of taxation and fulfillment of the tax liability that occurred since the last tax audit.

(2) The general tax audit is a documentary and actual tax audit, in respect to the compliance and
complete fulfillment of tax legislation by the taxpayer or tax agent.

Article 220 Partial audit

The partial audit shall apply both in the case of in office fiscal control, and by the fiscal audit on the spot
and consists of the control over the liquidation of some types of fiscal obligations, over the execution of
other obligations provided by the fiscal legislation from a certain period, verifying in part or in total, the
documents or the activity of the taxpayer.


Article 221 Thematic audit

The thematic audit shall apply both in case of in office fiscal control, and by the fiscal audit on the spot
and consists of the control over the liquidation of some types of fiscal obligations, over the execution of
other obligations provided by the fiscal legislation, verifying in part or in total, the documents or the
activity of the taxpayer.


Article 222 Operative audit

a. The current tax audit shall be conducted during economic and financial activities, simultaneously
   with the preparation of records and operations related to such activities in order to confirm such
   activities, as well as note and prevent any violations of tax legislation.
      (2) This tax audit shall be conducted unexpectedly by verifying facts on the basis of the documents,
      by whole or random examination of facts and documents. If it discovers violations of the tax
      legislation as a result of current audit controls conducted by them, and if the verification of all
      circumstances entails more time, then the materials of audit shall be transmitted to the respective tax
      authority sub-division in order to continue and finish the audit.

Article 223 Cross examination

(1) The cross tax examination consists in verification of the documents of audited entity together with the
verification of the documents of the entities who have or had economic, financial and other relations with
the subject entity, in order to verify the authenticity of indicated documents and operations.

(Article 224 excluded by Law nr. 448-XV from 30.12.04, in force from 04.02.05)

Article 225 Indirect methods and sources for tax liability assessment

(1) When verifying accuracy of the computation of the taxpayer's tax liability during a documentary tax
audit, the tax authorities shall have the right to use, in cases provided at art. 189 line (2) both direct and
indirect sources. The indirect methods and sources for estimating the fiscal obligations are used within
the fiscal inspections as result of establishment of fiscal posts in accordance with the art. 146.

(2)    Indirect sources and methods include::
a)    type and nature of the businesses of the taxpayer;
b)     size of the capital of the taxpayer;
c)     Incomes from sale of the taxpayer;
d)    number of employees in the taxpayer’s company;

e) types and number of customers of the taxpayer’s company;

f) difference between raw material, other purchased materials and materials currently used in the
production process;
g) analysis of change in the net value of the property of the taxpayer;
amount of the capital of the taxpayer’s company;
h) rent of the real estate used by the taxpayer for its businesses;
i) cash flow and amount of cash on the taxpayer’s bank accounts;
j) comparing of taxpayer’s incomes and expenses;
k) profit or income of other persons that manage similar companies in the same or similar conditions;
l) property of persons in charge of the taxpayer purchased or used for personal purposes, accounting of
these assets, including such assets as the house and the car, affiliation to certain social circles and number
of its housekeepers ;
m) information from financial institutions, notary offices, customs bodies, police, technical inventory
offices, stock exchanges and other institutions of this type, as well as any other accounting data that
could be used in establishing the amount of the taxpayer’s tax liabilities stipulated by this Code.
n) other objectives, processes and phenomenon, information and data in which the sum of the tax
obligation of the taxpayer is stated, provided by the present code.

(3) As basis for estimating the incomes from sales (service rendering) shall serve the daily deliveries of
goods and services registered during the period of functioning of the fiscal posts.

For application of the provisions from the present paragraph, it is necessary to respect all the following
conditions:
a) the fiscal posts have been established at least twice during the fiscal year;
b) the functioning period of the fiscal posts are at least 30 calendar days, but the difference between the
activity periods is at least 60 calendar days;
c) the average deliveries of goods and services per day until and between the functioning periods of the
fiscal posts are less than 70% against the average deliveries per day registered in the functioning periods
of the fiscal posts

4) The estimation of the fiscal obligations are made for the period from the beginning of the fiscal year
until the establishment of the first fiscal post and between the functioning periods of the fiscal posts, for
the months when the daily average of deliveries registered in the book-keeping of the economic entity is
lower than 70% from the daily average registered in the functioning periods of the fiscal posts.

On the ground of the fiscal obligations’ estimation, The State Main Tax Inspectorate or the territorial tax
body, in case of assigning the respective duties by the State Main Tax Inspectorate, shall issue the
decision on the tax offence.

(5) The provisions of the present article are applied on the types of activities specified in the sections C,
G, H, I of the Classified List of Activities of Moldova from February 9th, 2000.

Article 226 Summons to appear before tax authorities and bank summons, hearing procedure


(1) A summons is a written request addressed to the summoned person to appear before a tax authority or
present documents or other information held or that could be held by the person and that is relevant for
the determination of tax liability. The tax authorities shall have the right to summon any person to testify
or present documents to ensure the compliance by such person or other person of the tax legislation.

(2) The form of the summons shall be established by the Principal State Tax Inspectorate of the Republic
of Moldova and shall include the purpose of summons before the tax authority, time and place where the
summoned person shall present to give testimony or submit the documents, rights and duties of the
summoned person.

(3) The summoning procedure shall meet the following requirements:

a) the summons shall be signed by the officials of the respective tax authority;
b) unless otherwise provided by regulations, the summons shall be delivered to the subject person within
3 (three) business days before the date when this person shall present to give testimony or submit
documents;
c) in case when the summons provides for submission of accounting documents or other data, the
necessary materials shall be specified;
d) upon the request of the summoned person, the tax authority shall have the right to change the time
and place of the summons;
e) the summoned person shall have the right to give testimony with the participation of his/her
representative;
f) the tax authority shall have the right to request the presentation of existing documents, but shall not
request the summoned person to prepare and/or sign documents, except for the minutes that was agreed
on;

(4) Before the hearing, the person that is following to testify shall be identified, explained about his/her
duties and prevented about his/her liability in case of prejudiced deliberate false testimony. All these
shall be noted in the minutes signed by the testifying person. The summoned person shall tell everything
he/she knows about the subject of the summons. After the summoned person finishes his/her
presentation, the tax authority official may ask questions. If the summoned person is under full legal age
then his/her legal representative shall be also summoned for testimony. The results of the testimony shall
be recorded in the minutes signed by the participants.

(5) A bank summons is a special written request to financial institution on presentation of all the
information and documents related to the transactions made on the bank accounts of the person that is
subject or will be subject to a tax audit.
The bank summons shall be issued and executed in accordance with the following procedure:
a) the form of bank summons shall correspond to the requirements established by the State Tax
Inspectorate of the Republic of Moldova;
b) the tax authority officials shall prepare the summons in two copies, each copy signed by the
appropriate tax authority officials responsible to take this case;
c) the summons shall be sent to the corresponding financial institution (branch, subsidiary) where the
taxpayer has his/her bank account, or to the financial institution in the case where the branch (subsidiary)
is not known or if the taxpayer has or is supposed to have more bank accounts in several branches of this
financial institution;
d) the summons shall indicate the period of examination by the tax official(s) of the documents required
in the summons, and it shall not be more than 10 days from the day when these documents are submitted.

(7) Within 3 days from the moment of receipt of the bank summon, the financial institution shall ensure
the collection of all documents that it possesses referring to the bank account of the taxpayer and the
operations performed in this account for the period due to examination and present them to the fiscal
body.


Chapter 12
Ensuring of elimination of the fiscal obligation


Article 227 Measures to ensure the elimination of the fiscal obligation

(1) Elimination of the fiscal obligations shall be ensured by the application by the fiscal body or another
competent body, of delay increases (penalties) to taxes and fees, through the suspension of operations of
the bank counts, except for those from the provision credit accounts, by seizure of goods and other
measures provided by the present title and by the normative acts adopted in accordance with these.

(2) the elimination of the fiscal obligation can be guaranteed by legal mortgage, in accordance with the
legislation related to mortgage.

(3) In case of crossing of the customs point and/or of placement of the goods into a customs regime,
measures to ensure the elimination of fiscal obligations in accordance with the customs legislation shall
apply.


Article 228 Delay increase (penalty)

(1) The delay increase (penalty) is a sum calculated depending on the amount of tax, fee and the time
passed from the day in which these should have bee paid, regardless of the fact if they were calculated in
due time or not. The application by the fiscal body or other competent body of delay increase is
mandatory, regardless of the constraint form. The delay increase represents a part of the fiscal obligation
and shall be lifted in the way provided for by the fiscal legislation.
(2) For the non-payment of the tax, fee within the due term a delay increase shall be paid, as determined
in accordance with line (3) for the period when the tax fee should have been paid and until the day in
which they were paid, inclusively.

(3) the amount of the increase penalty shall be determined upon the pro rata basis, established by the
National Bank of Moldova in November of the previous year, applied for the re-financing of the
commercial banks through repo operations of purchase of state securities for a term of 2 months,
increased with 5 points.

(4) For the non-payment of the tax and fee written by the body with duties of fiscal administration from
the personal account of the taxpayer, the delay increase shall be calculated without a decision on it being
needed. The procedure and periodicity of the calculation (application) of the delay increase and its
reflection in the personal account of the taxpayer shall be established by the governance of the body with
fiscal administration duties, and for the taxes administered by the services for collection of local taxes
and fees – by the representative authorities of the local public administration. In case of periodical
presentation of the delay increases in the personal account of the taxpayer, it is allowed not to present its
calculated sum for each tax and fee in particular, if its sum is smaller than 10 lei.

(5) Upon the request of the taxpayer, in case of presentation of confirmation documents, the bodies that
have fiscal administration duties shall not apply (shall not calculate) delay increases (penalties):

a) to the taxpayers who have submitted documents for the transfer, from one account to another, of the
sums paid within a budget – for the period from the date of payment until the actual transfer date, within
the limits of the paid sum;

a¹) to the taxpayers who have submitted the documents for the transfer of the paid sums from the account
of one budget (state budget, budget of administrative-territorial units, budget of the state social insurance
and medical assistance obligatory funds) to the account of another budget (state budget, budget of
administrative-territorial units, budget of the state social insurance and medical assistance obligatory
funds) – for the period from entry of these documents to the respective body until the actual transfer date;

b) to the taxpayers that perform expenses compensated from the budget through direct financing or who
supply goods, perform works and/or render services to the institutions financed from the budget, within
the limits of the allocations approved for these aims – for the period of existence of the debt towards the
taxpayer to the fiscal obligations that will not surpass the amount of this debt.

6. For the fiscal obligations taken to special evidence in accordance with art 206, the delay increases shall
not be calculated.

7. In the cases when the term of liquidation of the fiscal obligation coincides with the date of cashing the
sums by the financial institution (its branch or subsidiary) in the account of liquidation of the indicated
fiscal obligation, the delay fines for the period established in the art.171 paragraph (6) are not applied
(calculated).

8. The delay fines for nonpayment of fiscal obligations estimated according to art. 225 for the fiscal
period until the issuance of the decision on the fiscal violation case shall not be calculated.

Article 229 Suspension of the operation of the bank accounts

(1) Suspension of transactions on bank accounts is a measure applied by the tax authorities that limits
the right of the taxpayer to use the financial resources on its bank accounts, including the right of the
taxpayer to open new bank accounts in the same bank or other financial institution.
(2) The instruction (order) on the suspension of transactions on taxpayer’s bank accounts shall be issued
in case of committing any of the violations provided at art 253 line (1), (2), (3) and (6), at art 260 line (1),
art 263 line (1) and (2), as well as in case of non liquidation, within the set term, of the fiscal obligation
and of pursue of the debt of the taxpayer. The fiscal body shall not be entitled to suspend the bank
account operations, and the order of suspension issued previously shall be annulled in case of referral of
the taxpayer to the court.

(3) The decision on suspension of the taxpayer’s transactions on bank accounts shall be adopted by the
officials of tax authorities where these persons are registered. This decision shall be prepared in the form
of instruction (order) issued by the mentioned tax authorities. The form of this order shall be established
by the State Tax Administration of the Republic of Moldova.
(4) The tax authority shall forward this instruction (order) to the taxpayer and financial institution where
the subject taxpayer has its bank accounts.

(5) The financial institution shall execute the order of suspension of the bank accounts of the taxpayer
immediately after it receives it, allowing the transfer to deductions:
           a. Of any sums into the budget account;
           b. Into the account of the creditors;
Of sums transferred from the loan account of the enterprise in the aims for which the loan has been
granted.

(6) Limitation of the right of the taxpayer to use the new accounts shall be effected by the non-issuance
by the tax authorities of the acknowledgement of the decision concerning the registration of the newly
opened bank account.

(7) The financial institution which is ceasing the operations on the bank accounts in accordance with the
provisions of this Article shall not be held liable for the actions taken with respect to the mentioned
taxpayer.

(8) The order regarding the suspension of the bank account operations of the taxpayer shall be annulled
simultaneously with the liquidation of the violation for which the suspension has been applied or in case
of satisfaction by the competent body of the taxpayer’s appeal, of the taxpayer’s (debtor’s) request,
taking into account the grounded reasons invoked by him, including the guarantees – free of any
obligation goods, offered for sequestration, letter of bank guarantee, pledge over some personal property
, bail, as well as on the basis of court’s decision or of the postponement contract.

Article 230 Seizure of goods

Seizure of goods as measure to ensure the payment of the taxes and/or fines shall be performed in the
way and conditions stated in chapter 9.




Chapter 13
General provisions regarding the liability for the fiscal violations

Article 231 Notion and grounds for fiscal liability

(1) For the purposes of this Code, the financial liability shall represent the use by tax authorities in
accordance with the requirements of this Code and other regulations, of sanctions against the persons
who committed tax violations.

(2) Tax violations shall serve as a ground for charging the person with financial liability.


Article 232 Persons subject to financial liability

The following persons shall be subject to financial liability:
a) economic agents, officials that committed tax violations;
b) Individuals (natural persons) who committed tax violations. In case when the person is incapable or
limited in his/her capabilities to work, his/her legal representative (parents, adoptive parents, tutors,
trustees) shall be the subject of financial liability.
c) The taxpayer natural person who practices entrepreneurial activity whose official person has violated
the tax law.


Article 233. Application of tax legislation with respect to financial liability

(1) The person who committed a tax violation shall be held financially liable in accordance with the
effective tax legislation at the time and in the place of violation.

(2) Financial sanctions shall be applied in accordance with the effective legislation at the time and in the
place of examination of the case of tax violation.

(3) Application of financial sanctions does not exempt the subject person from payment of his/her tax
liability under the legislation. Application of financial liability of taxpayers stated at art 232 shall not
exempt the officials, if there are needed grounds, from administrative, criminal or other liability provided
for by the legislation.

Article 234 Release from financial liability

(1) Financial liability shall not be applied in whole or partially in case when it was already determined, if
it is fully or partially cancelled and if there is evidence confirming the legality of all the actions (inaction)
that were previously considered illegal actions (inaction). The presented evidence can be verified by tax
authority at the place of its origin or by other persons to establish their authenticity and reliability.
Documents submitted with violation of the terms established by tax authorities or presented after the tax
audit shall be verified in the obligatory manner.

(2) The person triggered to liability for the fiscal violation shall benefit of a discount of the fines if he/she
strictly respects the following conditions:

a) has no arrears at the time of adoption of the decision on the case of fiscal violation or liquidates it at
the same time with the actions provided at letter b);
b)within 3 workdays from the date of handing in of the decision on the case of fiscal violation, eliminates
the sums of the taxes, fees and delay increases and/or 50% from the fines stated in the decision.
c) presents, in the term set for the voluntary execution of the decision on the case of tax violation, the
confirming documents stated at letter a) and b).

Based on the documents presented in accordance with letter c), the entitled authority shall within 10
workdays adopt a decision regarding the deduction of the fines with 50%. In case when after the adoption
of the decision about the reduction of the fines it is established that at least one of the conditions stated at
 letter a) and b), the respective authority shall annul the decision and the person shall not benefit of the
 reduction anymore.

 (3) Insolvency or temporary absence from the country of an individual or official person of an economic
 agent, as well as accusation of circumstances that could be foreseen by the person who committed the tax
 violation cannot serve as ground for non-application or cancellation of a financial sanction.

 (4) Persons exempted from income tax, other taxes and fees, as well as persons who made wrong
 calculations of income tax, other taxes and fees based on written explanations of tax authorities shall be
 released from any liability for understating, wrong calculation or failure to make the indicated payments.

 Article 235 Aim and form of the fiscal sanctions

 (1) A financial sanction is an action (set of actions) of a penalty nature applied to educate the person,
 who committed a tax violation, in the spirit of compliance with laws and to prevent new violations from
 person who committed tax violations and other persons.

 (2) A penalty is a sanction that consists in the obligation of the persons who committed tax violations to
 pay a certain sum of money.


 Article 236 Fine

 (1) The fine is a fiscal sanction that consists of obliging a person who has committed a tax violation to
 pay a sum of money. The fine shall apply regardless of the fact if there have been already applied other
 fiscal sanctions or paid taxes, fees, delay increases calculated additionally to those declared on non-
 declared.
 (2) The fine represents a part of the fiscal obligation and shall be lifted in the way set for the fiscal
 taxation.

(Article 237 excluded by the Law nr. 1163 – XV from 27.06.2002)

Article 238 General rules of application of the fiscal sanction

(1) The financial sanctions shall be applied within the limits set under the respective article of this Code in
    strict accordance with the tax legislation.
(2) In case when the person commits two or more fiscal violations, the fiscal sanction shall be applied for
    each fiscal violation and each fiscal period, except the cases stipulated in the art.188 (paragraph 2).

(3)
  Chapter 14
  Procedure of examination of the fiscal violation case

 Article 239 Aim of the procedure of examination of the fiscal violation case

 The objectives of the procedure of examination of the fiscal violation case are the following: prompt,
 multilateral, exhaustive, objective elucidation of the circumstances in which it occurred, settlement of the
 case in accordance with the legislation, assurance of the fulfillment of the adopted decisions, as well as
 determination of the causes and environment that led to the tax violation, prevention of violations,
 education of the citizens to obey the laws and the strengthening of the legality.

 Article 240 Circumstances that exclude the procedure of examination of the fiscal violation
           case

The procedure of examination of the fiscal violation case cannot be initiated, but the procedure that has
already been initiated shall be ceased in the following cases:
a) It was revealed that no tax infringement occurred;
b) The person for whom the procedure of examination of the fiscal violation case has been opened was
killed or died;
c) There are no sums of the fee, tax, increase on delay ( penalty) needed to be lifted according to the
fiscal legislation.

Article 241 Bodies authorized to examine the cases of fiscal violations

(1) The cases of fiscal violations shall be examined by the fiscal bodies and the bodies of the Center for
Fight against Economic Crimes and Corruption.

(2) The heads of the fiscal bodies or their deputies, the director, the deputy directors of the Center for
Fight against Economic Crimes and Corruption, the heads of their territorial bodies and their deputies
have the right to examine the cases of fiscal violations and apply financial sanctions.

Article 242 Rights and obligations of the person held responsible for the fiscal violation

The person held responsible for the fiscal violation has the right to familiarize with his file, provide
explanations, submit evidence, make requests, contest the decision upon the case. He can benefit from
the assistance of one lawyer whom he entrusts the exertion of the mentioned rights.

Article 243 Participation of the person held responsible for the fiscal violation in the examination
of the case

(1) The case of fiscal violation shall be examined in the presence of the person held responsible for the
violation. The fiscal body shall notify this person in writing (by summons) about the place, date and time
of case examination.

(2) The case of fiscal violation can be examined in the absence of the person held responsible for the
violation only if there is evidence that he was notified in the established manner about the place, date and
time of case examination and if no well-reasoned request was submitted by him to postpone the date of
examination.

(3) The tax-payer physical person can exercise his procedure rights in person, through a representative or
jointly with the representative, but the tax-payer legal person – through the director or his representative.

Article 244 The Representative and confirmation of his empowerments

(1) The person who lacks exercise capacity or has limited exercise capacity shall be represented by his
legal representative (parent, adoptive parent, guardian, trustee). This person shall present to the person
examining the case the certificate of empowerments.

(2) The legal representative shall undertake either in person or through a representative all the actions for
which he has the right, taking into account the restrictions provided by the law.

(3) The empowerments of the representative other than the legal one, shall be confirmed by a mandate,
issued in accordance with the present article, or by a document that confirms the function or
empowerments he holds – in case of the head of the juridical person.
(4) The mandate given by the physical person shall be certified, depending on the case: by the notary, by
the secretary of the village city hall, by the administration of the juridical person for whom he is working
or where the mandant studies, by the administration of the curative-preventive stationary institution
where the mandant is being treated, by the head of the military unit – if the mandant is a military man– or
by the head of the detention place – if the mandant is in detention.

(5) The mandate from the juridical person shall be issued by the director (his deputy).

(6) The lawyer empowerments shall be certified by an order issued by the bureau of attorneys.

Article 245 Place and manner of examination of the tax infringement

(1) The case of fiscal violation shall be examined at the office of the fiscal body where the taxpayer is
registered or in another place set by the fiscal body or by the bodies of the Center for the Fight Against
Economic Crimes and Corruption.

(2) The case of fiscal violation shall be examined in a closed regime by the authority empowered to
examine such cases, with the condition of holding fiscal confidentiality. The announcement of the
decision can be public, upon the will of the authority that adopts it, if it is not contested within 30 days
from the moment the taxpayer took notice of this decision.

Article 246 Time period for the examination of the tax violation case

(1) The case of tax violation shall be examined within 15 days from the date of:
a) disagreement presentation - if it was presented in due time;
b) expiration of the period for the disagreement presentation, in case the disagreement was not presented
or it was presented with delay;

(2) In case of presenting well-reasoned arguments, the term mentioned in the paragraph (1) can be
prolonged by 30 days through the decision of the body empowered to examine the cases of fiscal
violation, including the submission of a well-reasoned request by the person that is held responsible for
the fiscal violation, in accordance with the art. 234 paragraph (2). In such cases, the person who is held
responsible for the fiscal violation shall be notified in due time, according to the art. 234 paragraph (1),
about the date of the case examination.


Article 247 Clarification of the circumstances of the fiscal violation case

The person who examines the tax violation case shall be required to clarify if:

a) a fiscal violation has been really committed;
b) the respective person should be held responsible for fiscal violation;
c) there are some other circumstances which are important for the fair settlement of the case.


Article 248 Decision on the fiscal violation case

(1) After examining the tax violation case, the fiscal authority shall emit a decision on this case that
should include:

a) name of the body on which behalf the decision is announced;
b) position, name and surname of the person who emitted the decision;
c) date and place of the case examination;
d) the note about the participation of the persons (their representatives) who committed the fiscal
violation;
e) name, surname, address, fiscal code of the person who committed the fiscal violation;
f) description of the tax violation with indication of the articles, paragraphs and items from the
normative documents that have been violated;
g) indication of the article, paragraph and item from the normative document that stipulate the fiscal
sanction;
h) decision on the case;
i) term and procedure to contest the decision;
j) other data referring to the case;
k) signature of the person who emitted the decision.

Article 249 Types of decisions

(1) Upon the case of the fiscal violation there can be announced one of the following decisions
concerning:
a) the application of the fiscal sanction and/or cashing the fee, tax, additionally calculated, of the
increase on delay;
b) closing of the case;
c) suspension of the case and repeating the verification procedure;

(2) The decision on closing the case shall be announced if:
a) there are circumstances, stipulated by the present code, that exclude or acquits from responsibility for
fiscal violation and there are no sums of the tax, fee, delay penalties that need to be cashed according to
the fiscal legislation;
b) an act of annulment of the fiscal sanction, sum of the tax, fee, increase on delay (delay penalty) is
adopted according to the art. 172;
c) there exists, for the same action, regarding the same person who is held responsible for the fiscal
violation, a decision regarding the application of a fiscal sanction and/or the cashing of a sum of tax, fee,
delay penalty or there is a decision concerning the closing of the case;
d) the materials of the case shall be transmitted according to the competence, if it is found that the
examination of the case can be fully performed by another authority entitled to examine the cases of
fiscal violation;

(3) The decision on the suspension of the case with a repeated verification shall be announced if there are
contradictory statements that at the time of the case examination there was no supportive evidence.
When repeated verification is terminated the case examination shall be restarted.

Article 250 Announcement of the decision on the case of fiscal violation and handing over of one
exemplar of the decision

(1) The decision on the case of fiscal violation shall be announced immediately after the termination of
its examination.
(2) Within 3 days after emitting the decision upon the case of fiscal violation, one exemplar shall be
handed over or sent registered to the person mentioned in it;

Article 251 Proposals to liquidate the actions and conditions of committing the fiscal violation

(1) By determining the actions and conditions of committing the fiscal violation, the fiscal body that
examines the case can present proposals of liquidation of these actions and conditions.
(2) If during the examination of the fiscal violation cases have been revealed any signs of offence, the
materials shall be transmitted for criminal proceedings to the bodies of the Centre for Fight against
Economic Crime and Corruption.

Article 252 Execution of the decision on the case of fiscal violation

(1) The person mentioned in the decision on the case of fiscal violation shall execute it within 30 days
from the date of its announcement. For this period the calculation of the delay penalty is not suspended.

(2) In case of appeal, the execution of the decision on the case of fiscal violation shall not be suspended
unless the authority that examines the contestation decides otherwise.

(3) After expiration of 30 days, if the decision has not been executed willingly or the legal pledge has not
been constituted, this decision on the fiscal violation shall be executed by force, in the manner stipulated
by the current code, by the fiscal body where the mentioned person is registered.

                                      Chapter 15
       Types of fiscal violations and the responsibility held for them
Article 253 Hindering the activity of the fiscal body

(1) The hindering of the procedure of fiscal control by hindering the access to the production places,
warehouses, storage rooms for goods, commercial places and places of another purpose, by providing no
explanations, data, information and documents required by the fiscal body on the problems appearing
during the control procedure, by other actions or inaction, shall be sanctioned with a fine in the amount
of 3000 lei.
(2) – is excluded

(3) – is excluded

(4) Non-execution of the fiscal body decision on the suspension of operations on the taxpayers’ bank
accounts shall be sanctioned with a fine in the size of 30% from the amount passed to deductions in the
period of non-suspension of the operations.

(5) For non-execution of the requirements from the fiscal body summons, physical persons shall be
sanctioned with a penalty in the amount of 1000 lei, legal entities – in the amount of 3000 lei, but non-
execution of requirements from the bank summons shall be sanctioned with a fine in the amount of
10000 lei.

(6) - is excluded

 Article 254 Non-utilization of the cashier and control machines and POS terminals. Non-issuance
of the travel payment document

(1) Carrying out an activity without having a cashier and control machine, in case when the normative
documents in force stipulate its use, shall be sanctioned with a fine from 5000 lei for each case of
violation.

(2) Carrying out an activity without using an existing cashier and control machine or with the use of a
defective cashier or control machine, unsealed in the established way or unregistered at the fiscal body,
shall be sanctioned with a fine of 6000 lei for each case of violation.
(2¹) Transportation of passengers by micro-bus, autobus, bus, buses classified by stars on the interurban
itineraries without tickets, without cashier receipt delivered by the cashier and control machine with
fiscal memory or without document of strict record with fixed price, manufactured in the manner set by
the government, shall be sanctioned with a fine in the amount of 6000 lei for each case of violation.

(3) The carrying out of an activity without installation and provision of the possibility to make the
payments through POS terminals, in the case when the legislative documents foresee their use, shall be
sanctioned with a fine in sum of 6000 lei for each case.

Article 255 Non-presentation of the information regarding the head office

(1) Non-presentation or delayed presentation to the fiscal body of the information about the head office
or the change of the taxpayer head office, subdivisions (subsidiaries, representatives, branches sections,
shops, warehouses, commercial units etc) which are located in the place other than the central head
office, shall be sanctioned with a penalty from 1 000 to 2 000 lei for each case.

(2) Presentation to the fiscal bodies of incorrect information about the taxpayer head office, its
subdivisions (subsidiaries, representatives, branches sections, shops, warehouses, commercial units etc)
which are located in the place other than the central head office, shall be sanctioned with a penalty from
1 000 to 1 500 lei for each case.


Article 256 Failure to respect the rules of book-keeping by the taxpayers

(1) - is excluded

(2) – is excluded

(3) – is excluded

(4) Violation by the financial institution (subsidiary or its branch) of the provisions of the art. 167 shall
be sanctioned with a fine in the amount of 1500 lei.

(5) Modification or closure by the financial institution (its branch or subsidiary) of the taxpayer’s bank
account (except the credit account, savings account and temporary account (of accumulation of the
financial means for setting up or increasing the social capital), as well as of the accounts of the physical
persons who are not subjects of the entrepreneurship activity) without the tax body certificate or with
violation of the legislation rules, or the delayed presentation to the fiscal body of the information about
the changing or closing of the tax-payer’s bank account (except the credit account, saving account or
temporary account(of accumulation of the financial means for the formation and increase of the social
capital), as well as of the accounts of the physical persons who are not subjects of the entrepreneurship
activity) shall be sanctioned with a penalty between 5000 and 8000 lei.

(6) Performing operations by the financial institution (its subsidiary or branch) on the taxpayer’s bank
account (except the credit account, saving account and temporary account ( of accumulation of the
financial means for the formation or increase of the social capital), as well as on the accounts of the
physical persons who are not subjects of the entrepreneurship activity) without confirming the
registration of the opened bank account by the fiscal body shall be subject to a penalty of 30% from the
sums introduced into the respective account;
(7) Non-registration as VAT taxpayer or as a subject liable to excise shall be sanctioned with a fine of
10% from the volume of taxable deliveries.

(8) Non-presentation or delayed presentation by the taxpayer to the fiscal body of the information about
the bank account opened abroad shall be sanctioned with a fine of 5 000 lei for each bank account.

Article 257 Violation of the accounting book-keeping and fiscal data keeping rules

(1) Incomplete or inadequate execution of the primary record-keeping documents for fiscal purposes (or
their total absence) and/or of the fiscal accounting reports shall be sanctioned with a fine in the amount of
500 lei for each case.

(2) The use of primary documents forms of the sample other than that established by the normative
document in force, as well as the use of falsified or somebody’s else primary document forms (including
the fiscal invoices) shall be sanctioned with a penalty equal to the sum of economic operations registered
in such documents.

(3) – is excluded

(4) – is excluded

(5) The failure to keep the fiscal reports and/or book-keeping documents and/or total or partial lack of
book keeping, which makes impossible the carrying out of the fiscal control, shall be sanctioned with a
fine of 30 000 lei, with calculation of respective taxes and fees according to the art. 189 paragraph (2)
from the present code.

Article 259 Violation by the financial institutions (its subsidiary or branch) of the discounting
procedure

(1) Violation of the terms established by the legislation for the registration of the financial means in the
bank accounts of the economic agents shall be sanctioned with a fine of 10% from the non-registered in
due time sum.

 (2) Registration of the financial means, received from commercializing goods, executing works and
offering services, in the deposit accounts or other bank accounts with the evasion of the current accounts
in national currency or foreign currency shall be sanctioned with a fine of 5% from the registered sum.

 (3) Non-execution or late execution of the treasury payment order and/or of the incasso treasury order
concerning the annulling of the fiscal obligation in the case when the taxpayer or his debtor possesses the
financial means at the bank account shall be sanctioned with the penalty of 2% from the sum that has to
be paid.

(4) Violation of the registration terms in the State Treasury accounts of the sums cashed from the
taxpayer shall be sanctioned with a penalty of 5% from the sum non-registered in time for each delay.

(5) Non-presentatıon or late presentation to the fiscal body by the financial institution (its subsidiary or
branch) of the information about the registration in the taxpayer’s bank account of the financial means, in
case of suspension of the operations at this account, shall be sanctioned with a fine in size of 1% from the
sum registered in the account for each day of non-presentation or delay.

(6) Non-execution or erroneous execution by the financial institution (its subsidiary or branch) of the
payment orders regarding payment of the fiscal obligations towards the national public budget in
accordance with the information indicated by the tax-payer shall be sanctioned with a fine in the amount
of 200 lei for each case of unexecuted or erroneously executed payment order.

Article 260 Failure to comply with the rules of drawing up and presentation of the fiscal report
 (1) Non-presentation of the fiscal report or its late presentation shall be sanctioned with a fine of 5%
from the sum of the fee that is going to be transferred to the budget and that should be indicated in the
mentioned fiscal report, but for the excise – 5% from the sum of the excise that should be stated as
calculated, in case when the period for which the report has not been presented does not surpass 1 month,
increasing, in case of ulterior non-presentation with 5% from the tax or fee that shall be transferred to the
budget and which shall be stated in the mentioned fiscal report, and for the excise – with 5% from the
sum of the excise that shall be stated as being calculated for each following month or with a quota from
these 5% in case when the month is incomplete. At the same time, altogether, the amount of the fee shall
not surpass 30% of the sum of the tax or fee.

(2) Non-presentation of the fiscal reports according to the art. 92 or presentation of a report that contains
incorrect information shall be sanctioned with a fine of 200 lei for each non-presented report or with 100
lei for each piece of incorrect information. It is considered that the fiscal report contains incorrect
information if it doesn’t contain the information required by the fiscal legislation or if the information is
totally or partially false. The fiscal body has the right to annul or reduce the penalty if the error is
corrected within 30 days from the date established for its presentation.

(3) The non-presentation of the document within 10 days after application of the fine stipulated in the
paragraph (2) shall be sanctioned with a 2 000 lei fine.

(4) Non-presentation of the fiscal invoice in the terms stipulated in the 117 shall be sanctioned with a fine
of 1 800 for each invoice not presented in due term.

(5) In case of diminution of the taxable income declared by the taxpayer who applies the zero rate for the
income tax, a 25% fine from the undeclared (diminished) sum of the taxable income shall be applied.

Article 261 Infringement of the rules of calculation and payment of the duties and taxes

Paragraph (1) excluded

(4) The diminution of the fees, taxes by presenting to the fiscal body of a fiscal report with incorrect
information or data shall sanctioned with a fine equal to 30% from the sum of diminution.

(5) The dodging from calculating and paying the fees, taxes and/or delay penalties, by not showing it in
the book-keeping, failure to submit accounting reports shall be sanctioned with a fine in the amount of
undeclared fee, tax and/or delay penalties. In case of fine application in accordance with the present
paragraph, the fine stipulated in the paragraph (1) and in the art.260 paragraph (1) shall not be applied.

(6) The non-payment or incomplete payment of the income tax in installments shall be sanctioned with a
fine of a calculated ratio, in the manner established in the art.228 paragraph (3), subject to one period
between the date established for the fee payment and the date established for the presentation of the fiscal
declaration. The non-paid sum of the income tax is determined as the difference between the calculated,
paid fee by the tax-payer and the fee that he was obliged to pay. The income tax that shall be paid
represents the smallest size from the calculated fee that had to be paid in the previous year or 80% from
the ultimate sum of the fee in the current year, deducting the sums placed on the account (except the fee
paid in installments). The sanction shall not be applied in the case when the income tax to be paid is less
than 500 lei. The fine shall not applied to the tax-payers mentioned in the art.228 paragraph 5 with regard
to the fiscal obligations and the fiscal periods for which the delay increases (penalties) are not applied
(not calculated).

Article 262 The absence of the certificate of excise and/or excise stamps, of the “Excise Stamps.
State Trade-Marks”

(1) The absence of the excise stamps, “Excise stamps. State trade-marks” on the goods subdued to excise
and obligatory marking or utilization of falsified or invalid “Excise stamps. State trade-marks”, shall be
sanctioned, in the case when the subject liable to excise commercializes, transports or deposits the goods
without excise stamps, falsified or invalid “Excise stamps. State trade-marks” with a fine of 7000 lei for
every case.

262¹ Failure of respecting the rules of commercialization of cigarettes with filter
(1) Commercialization of cigarettes with filter which are not found in the lists comprising maximum
retail sale prices declared by the economic agents producers and importers shall be sanctioned with a fine
of 50% from the value of the cigarettes with filter commercialized with violation in the established
manner.

(2) Commercialization of cigarettes with filter at prices higher than declared maximum retail prices shall
be sanctioned with a fine of 50% from the value of the cigarettes commercialized with violation of the set
manner.

Article 263 Failure to respect the rules of forced execution of the fiscal obligation

(1) If fiscal employee is hindered to perform the forced execution of the fiscal obligation by other
methods than those stipulated in the paragraph (2)-(4), the physical persons shall be sanctioned with a
fine of 1000 lei, but enterprises– in the amount of 5000 lei.
(2) Non-acceptance to store by the tax-payer (his representative) or his person holding the responsibility
for the sequestrated goods shall be sanctioned with a fine, applied to physical persons in the amount of
1000 lei, and to the juridical persons – of 5000 lei.
(3) Peculation, alienation, substitution or concealment of goods sequestrated by the person to whom the
goods were entrusted for storage or by the person obligated to ensure their integrity, according to the law,
shall be sanctioned with a penalty equal to the value of the sequestrated goods, that have been peculated,
alienated, substituted or concealed.
(4) Performing operations with sequestrated stocks and shares, from the moment of suspending the
operations, shall be sanctioned with a penalty, applied to the taxpayer and registrar, of 20% from the sum
of the operation.

                                      CHAPTER 16
                                 REGULATIN TERMS
Article 264 Regulation term for determining the fiscal obligations

(1) Except the cases stipulated in the paragraph (2), the fiscal obligations can be determined in the
following terms:
a) fees, taxes, delay penalties – within maximum 4 years from the last date established for the
presentation of the respective fiscal report or for the payment of the fee, tax, delay penalty, in case the
presentation of a fiscal report is not stipulated;
b) the fiscal sanctions related to some concrete fees and taxes – within maximum 4 years from the last
date established for the presentation of the fiscal report on the mentioned fee and tax or for the payment
of the fee and tax in case the presentation of the fiscal report is not stipulated;
c) fiscal sanctions non related to some concrete fees and taxes – within maximum 4 years from the date
of committing the fiscal violation.

(2) The regulation term shall not extend over the fee, tax, delay increase (penalty), fiscal sanctions related
to a concrete fee or tax if the fiscal report that establishes the fiscal obligation contains information that
misleads or reflects actions that represent fiscal offences or has not been presented.

Article 265 Regulation term for liquidation of the fiscal obligation

(1) If the determination of the fiscal obligation took place in the term or period established in the art.264,
    it can be liquidated by a fiscal body forced execution in accordance with the present title or by the
    court, but only if the actions of the fiscal body or the court notification took place within 6 years from
    determination of the fiscal obligation.

(2) The regulation term is suspended when:

a) the taxpayer physical person is under arrest or convicted to freedom deprivation – for the period
   when he is under arrest or deprived of freedom;
b) the taxpayer physical person is not in the Republic of Moldova for more than 6 months – on the
   period of his absence;
c) the person responsible for the taxpayer physical person is not in the Republic of Moldova for more
   than 6 months – on the period of his absence;
d) the fiscal obligation has been postponed or staggered– on the period of postponing and staggering;
e) the court took the decision to collect the fee, tax, delay penalty and/or fine – for a period until the
   liquidation of the fiscal obligation or until the caducity of the court decision;
f) the regulation term will restart from the day of ceasing of the circumstance that represented the
   reason for its suspension.

Article 266 Regulation term for compensation or reimbursement of the additionally paid sums
which in accordance with the fiscal legislation shall be returned

(1) The request of compensation or reimbursement of the additionally paid sums, which according to the
fiscal legislation, shall be returned, can be submitted by the taxpayer within 6 years from the date they
were paid and/or appeared. The request submitted after the expiration of the 6 years in not valid. In this
case, no compensation or reimbursement shall be made, except the cases stipulated in the paragraph (2).
The request submission shall suspend the flowing of the mentioned term.

(2) The fiscal body can put back in term and accept the request for compensation and/or reimbursement
of the additionally paid sums or sums which, according to the fiscal legislation shall be returned if the
taxpayer presents evidence on the impossibility to respect the regulation term stipulated in the paragraph
(1).

                                       CHAPTER 17

                                       APPEALS

Article 267. Right to contest the decision of the fiscal body or the action of the fiscal employee

(1) The decision of the fiscal body or the action of the fiscal employee can be contested only by the
person mentioned in the decision or against whom the action has been taken, or by his representative, in
the manner established by the present code.
(2) Appeal against the decision of the fiscal body or the action of the fiscal employee taken by other
persons than the ones indicated in the paragraph (1) shall remain unexamined by the fiscal body.
(3) The obligation to prove the incorrectness of the decision issued by the fiscal body is the responsibility
of the person who makes the appeal.

Article 268 Term of submitting the appeal

(1) The appeal against the fiscal body decision or fiscal employee action can be submitted, if the present
code does not stipulate otherwise, within 30 days from the date of receiving the decision or the
undertaken action subjected to appeal. In case this term was omitted because of well-grounded reasons, it
can be restored by the fiscal body authorized to examine the appeal at the request of the person
mentioned in the decision or against whom the action has been undertaken.

 (2) The appeal submitted after the expiration of the term indicated in the paragraph (1),
non-restored in the manner stipulated in the same paragraph shall remain unexamined and shall be
returned to the complainer.

Article 269 Appeal submission

(1)The appeal against the fiscal body decision or the fiscal employee action shall be submitted to the
fiscal body that issued the decision or whose employee undertook the action.

(3) The decision emitted by the fiscal body regarding the appeal can be contested at the State Central
Fiscal Inspectorate or at the competent court. In case of applying to the State Central Fiscal Inspectorate,
the appeal shall be presented to the fiscal body that emitted the decision, which shall be obliged to hand it
over to the State Central Fiscal Inspectorate within 3 days.


Article 270 Appeal examination

(1) The authorized fiscal body shall examine the appeal within 30 days from receiving it, except the case
when its administration emits a decision on prolongation of this term, about which the taxpayer is
informed. The prolonged period shall not exceed 30 days.

(2) The taxpayer can be invited at appeal examination in order to give explanations on the issue, having
the right to submit documents confirming his explanations.

(3) After examination, the administration of the fiscal body shall emit the decision on the appeal, one
exemplar being handed over to the taxpayer.


Article 271 The decision emitted with respect to the appeal

(1) One of the following decisions can be emitted on the appeal against the fiscal body decision:
a) to reject the appeal and annul the contested decision;
b) to satisfy partially the appeal and change the contested decision;
c) to satisfy the appeal and annul the contested decision;
d) to suspend the contested decision execution and carry out a repeated control;

(2) On the appeal against the fiscal employee action can be emitted the decision to reject the appeal and
call the fiscal employee to account in accordance with the legislation, restoring the infringed rights of the
person who contested the fiscal employee action.
Article 273 Appeal against the decisions and actions of forced execution of the fiscal obligation

(1) The fiscal body decision and the fiscal employee action on the forced execution of the fiscal
obligation can be contested in accordance with this code, only by persons subjected to the forced
execution.
(2) The appeal against the fiscal body decisions and fiscal employee actions on the forced execution of
the fiscal obligation, according to this code, shall be submitted within 10 working days from the date of
emitting the decision or execution of the contested actions. The submission of the appeal to the fiscal
body does not stop the forced execution of the fiscal obligation in accordance with the present code,
except the commercialization of the sequestrated goods.

Article 274 Appeal against the fiscal body decision and fiscal employee action made in the
            Court

The fiscal body decision and the fiscal employee action can be contested, in the manner stipulated by the
legislation, also in the Court.




                                               CHAPTER 18
                                         Normative Documents
Article 275 Normative documents of the fiscal body

(1) The fiscal body shall have the right, within the limits of its competency and in accordance with the
legislation, to emit normative documents that determine the mechanism of application of the fiscal
legislation.
(2) The normative documents emitted by the fiscal body are published in the set manner.
(3) The normative documents shall be adopted, modified and abrogated by the State Central Fiscal
Inspectorate, and, in the cases stipulated by the legislation, registered at the Ministry of Justice.
(4) The normative documents emitted by the fiscal body should not contradict the fiscal legislation.


CHAIRWOMAN
OF THE PARLIAMENT                                                       Eugenia OSTAPCIUC



                                          Title VI
                                       REAL ESTATE TAX



                                           Chapter 1
                                       GENERAL PROVISIONS

Article 276 Notions

In the context of this title, the following notions shall be defined:
1) Real estate tax – local tax that represents an obligatory payment transferred to the budget from the
value of the real estate goods.
2) Real estate – territories, buildings, constructions, apartments and other isolated rooms, with
impossibility not to cause any prejudices to their purpose in case of their displacement
3) Estimated value – the value of the real estate calculated at a certain date using evaluation methods
stipulated by the legislation.
                                                point 4 is excluded
5) Maximum tax quota – quota ad valorem in percents from the taxable base of the real estate,
established in the present title, that can differ from the actual tax quota.
6) Actual tax quota – quota ad valorem in percents from the taxable base of the real estate, established by
the representative authority of the local public administration at the adoption of the budget of the
respective administrative-territorial unit.
7) Fiscal Register – specialized register that includes systematized data regarding the taxable subjects,
cadastral numbers, types and address of the objects that represent real estate, the taxable base, the sum of
the real estate tax that shall be paid, as well as some other information related to this tax.

                                              Chapter 2

 SUBJECTS OF TAXATION, OBJECTS OF TAXATION AND TAXABLE BASE OF
                        THE REAL ESTATE

Article 277 Subjects of taxation

(1) The subjects of taxation are juridical and physical persons, residents and nonresidents of the Republic
of Moldova:
a) Owners of real-estate on the territory of the Republic of Moldova;
b) Holders of patrimonial rights (ownership, management, operative administration rights) on the real-
estate placed on the territory of the Republic of Moldova that is public property of the state or public
property of the administrative-territorial units and the tenants that rent agricultural real-estate subject to
private property taxation, if the rent contract does not stipulate otherwise.

(2) Despite the fact that the persons specified in the paragraph (1) item a) do not hold a document
certifying the ownership rights for the real-estate and do not execute the obligation to register the
patrimonial rights stipulated by the legislation, this shall not be considered a reason for their
misrecognition as subjects of taxation with regard to the respective real-estate, considering that these
persons, in reality, exercise their rights of ownership, usage and management of this real estate.

(3) In case the real-estate is a joint ownership divided between more persons, the subject of taxation is
considered each of these persons following their share in the real estate.

(4) In case the real-estate is in a common property, the subject of taxation is considered, upon their
common agreement, one of the owners (co-owners). In this case, all the owners (co-owners) carry joint
responsibility for the fulfillment of the fiscal obligations.

(5) In case of financial leasing contract, subject of taxation is considered the tenant of the real-estate.

Article 278 Objects of taxation and the taxable base of the real-estate

(1) The objects of taxation are the real estate, including land (agricultural, industrial, transportation,
telecommunication fields, as well as the and for other special purposes) within the built-up area or
outside the build-up areas, buildings, constructions, apartments and other isolated rooms, including the
real-estate which are by 80% or more terminated, that remained unfinished during 5 years from starting
the execution of the construction works.
 (2) The taxable base of the real-estate represents its estimated value.

                                       Chapter 3

EVALUATION AND THE REEVALUATION OF THE REAL-ESTATE AND THE PURPOSE
OF TAXATION

Article 279 Evaluation and reevaluation of the real-estate

(1) Real-estate evaluation shall be performed by the cadastral territorial bodies on the basis of a unique
methodology for all types of real estate in the manner and terms established by the legislation.
(2) The evaluation of the real estate shall be performed through mass evaluation – for typical objects that
represent real-estate, and through individual evaluation – for specific objects (untypical).
(3) The method of individual evaluation can also be applied upon the court decision.
(4) As regards the real-estate evaluation, depending on the real-estate destination, the following methods
of determining the market value are applied:
a) Method of sales comparative analysis;
b) Method of incomes;
c) Method of expenditures.

(5) The reevaluation of the real-estate shall be made by the cadastral territorial bodies once every 3 years
in the manner set by the Government.
(6) The work on the real-estate evaluation shall be financed from the state budget.

                         Chapter 4
SHARES, METHOD OF CALCULATION AND PAYMENT TERMS OF THE
                      REAL-ESTATE TAX

Article 280 Tax rates

(1) The maximum tax rate shall represent 0,25 % from the taxable base of the real-estate.
(2) The actual rate of the real-estate tax shall be established annually by the representative authority of
the local public administration and cannot be lower than 0,02% from the taxable base of the real-estate.
(3) The representative authority of the local public administration, including from localities which are
part of Chisinau municipality, except Chisinau municipality, establishes the actual tax rate in the size that
will provide the increase of the fiscal obligation on average by 10% with respect to the previous year. By
derogation from the paragraph (1) and (2), the actual real-estate tax share in Chisinau municipality,
except the localities included which are part of it, is set at the rate of 0,02% of the taxable base of the
real-estate.
(4) In the event that the total area of the real-estate (dwelling place, principal construction – construction
registered with the property right belonging to physical person, which is meant for dwelling and is not
used in the entrepreneurship activity) exceeds 100 m2 inclusive, the actual real-estate tax is increased as
follows:
- from 100 m2 to 200 m3 – by 3 times;
- over 200 m2 – by 28 times

Article 281 Tax calculation

(1) The real-estate tax for the physical persons who are not conducting entrepreneurial activity, as well as
for the farmers’ households is calculated annually for each object of taxation, starting with the taxable
base of the real-estate, calculated according to the situation on the 1st of January of the respective fiscal
year, by the services of collection of the local fees and taxes of the city-halls with participation of the
territorial state fiscal inspectorates. For these categories of taxpayers. In Chisinau and Balti
municipalities, the annual sum of the real-estate tax is calculated by the territorial state fiscal
inspectorates.

(1¹) Physical and juridical persons who carry out entrepreneurial activity, except for the farmers’
households calculate independently the annual sum of real estate tax, following their taxable base, as per
the situation of 1st of January of the running fiscal year, and until the 1st of July of the same year, presents
to the territorial fiscal inspectorates the calculation of the real estate tax. For the real estate acquired after
expiration of the established term for presentation of the calculation of the real estate tax, the respective
calculation is presented not later than the last working day of the running fiscal year. Within the same
period, the fiscal obligation calculated for the real estate is paid.

(2) In case of change of the subject of taxation, if the fiscal year has already started, for the new subject
of taxation the real-estate tax shall be calculated from the moment of state registration of the real-estate
patrimonial rights or from the moment of establishing the fact of exercising the real-estate ownership,
usage and management rights by the person.

(3) If the subject of taxation receives the real-estate through inheritance or donation, the fiscal obligation
unexecuted by the previous subject of taxation shall be fully transmitted to the new subject. If the
unexecuted fiscal obligation exceeds the cost of the inherited real-estate, the new subject of taxation shall
execute the fiscal obligation within the limits that do not exceed the cost of the real-estate.

Article 282 The terms of tax payment

(1) The real-estate tax shall be paid by the subject of taxation in equal parts not later than 15th of August
and 15th of October of the current year.
(2) The taxpayers who pay the total tax sum for the running year until 30th of June of the respective year
benefit from the right for a reduction by 15% of the tax sum to be paid.
                                       Chapter 5
        FACILITIES FOR THE PAYMENT OF THE REAL-ESTATE TAX

Article 283 Tax exemption

(1) The following organizations are exempted from tax payment:

a) Public authorities and institutions financed from the budgets of all the levels;
b) Societies of blind, deaf and disabled persons and the enterprises created for fulfillment of the statutory
purposes of these societies;
c) Penitentiary enterprises;
d) Republican Experimental Centre for Prosthesis, Orthopedy and Rehabilitation of the Ministry of
Labor, Social Protection and Family;
e) Organizations of civil protection;
f) Religious organizations –real-estate meant for religious rituals;
g) Diplomatic missions and other missions from the same category, as well as the organizations to which
the Republic of Moldova is party in accordance with the international treaties;
h) pensioners, disabled of the I and II degree, disabled from childhood, disabled of III degree
(participants in the wars for defending the territorial integrity and independence of the Republic of
Moldova, participants in the wars from Afghanistan, participants in the liquidation of consequences of
the Chernobyl accident), as well as the persons subjected to repressions and later rehabilitated;
i) Families of the participants who died in defending the territorial integrity and independence of the
Republic of Moldova and the persons who were maintained by them;
j) Families of the militaries who died in the war from Afghanistan and the persons who where maintained
by them;
k) Families with disabled children of the age less than 18 years old and members of the families who
support and offer permanent care to the persons with disabilities;
l) Families of the persons who died as consequence of some diseases caused by their participation in the
actions of liquidation of the consequences of the Chernobyl accident and the persons who were
maintained by them.
m) Public medical-sanitary institutions financed from the funds of obligatory medical insurance;
n) National Medical Insurance Company and its territorial agencies;
o) National Bank of Moldova;
p) Owners or holders of the goods requisitioned for public interest, for the period of requisition,
according to the legislation.
r) physical persons that rent dwelling houses or other dwelling places (used for main dwelling) which are
the public property of the state or public property of the administrative-territorial units

(2) Categories of the persons indicated in the paragraph (1) item h) – 1) shall be exempted from the real
estate tax payment for the land where the houses are placed, for the plots near the dwelling place
(including the land assigned by the local public administration authorities as plots from near the dwelling
place and distributed outside the built-up areas because of lack of land inside the build-up areas), as well
as for the real-estate (buildings, constructions, apartments) placed on them with the cost of the real-
estate-domicile (in its absence- place of residence) up to 30 thousands lei, except the dwelling real-estate
(apartments and individual dwelling houses) and the land adherent to it from cities, municipalities,
including from localities which are part of them, except the villages (communes) for which the
exemption from real-estate tax payment is granted within the limits of the value of the real-estate –
dwelling place (if absent – place of residence), according to the enclosure to the present title.

(3) In the event that the right for real-estate tax exemption appears during the fiscal year, the tax
recalculation shall be effected starting with the month when the person has the right to receive this
exemption in Chisinau and Balti municipalities, except the cities and villages (communes) which are part
of them for which the tax recalculation is made by the territorial state fiscal inspectorates;

4) From paying the tax for the real-estate (fields, land) are exempted the owners and beneficiaries whose
fields and land:
a) are occupied by reservations, dendrological and national parks, botanical gardens;
b) are meant for the forest and water patrimony, in case they are not involved in the production activity;
c) are used by scientific organizations and scientific research institutions in the field of agriculture and
forestry for scientific and instructive purposes;
d) are occupied by perennial plantations until they give crops;
e) are occupied by cultural, art, cinematography, education, health protection institutions; by sport and
entertainment institutions (except the balneal institutions), as well as by natural monuments, historical
and cultural monuments, which are financed from the state budget or financial means of the syndicates;
f) are permanently assigned to the railways, public auto roads, fluvial ports and flight take-off strips;
g) are assigned to the state frontier zones;
h) are of a public use in localities;
i) are assigned for agricultural purposes, at the moment of assignment being considered destroyed, but
later restored – on a period of 5 years.

Article 284 Tax exemption granted by the authorities of local public administration
(1) Deliberative and representative authorities of the local public administration of the first and second
level shall have the right to entitle the physical and juridical persons to real-estate tax exemptions or
postponement of the real estate tax payment within the limits of deductions from this tax in the respective
budgets, according to the percentage norms approved by the authorities of the local public administration
of the second level for the respective fiscal year, in case of:

a) natural calamity or fire outbreaks, which have destroyed or considerably deteriorated the
 real-estate, crops and perennial plantations.
b) assignment of fields for evacuation of enterprises with a negative impact on the environment.
c) long-lasting disease or death of the real-estate owner confirmed by a medical certificate or death
certificate, respectively.

(2) The amount of prejudices which appeared as result of natural calamities or fire outbreaks shall be
determined by a special committee. The structure and mechanism of operation of these committees are
established by the Government.


                             CHAPTER 6
               ADMINISTRATION OF THE REAL-ESTATE TAX

Article 285 Supply with information

(1) The Agency for Land Relations and Cadastre shall submit annually to the State Central Tax
Inspectorate not later than the 1st of February, the information about each real-estate object and subject of
taxation with the real-estate tax. The structure of the information and the manner of its transmittance are
set by the State Central Tax Inspectorate:

(2) In case of changes in the information regarding the objects and/or subjects of taxation, the Agency for
Land Relations and Cadastre presents updated information the latest until the 1st of June of the calendar
year.

(3) The cadastral bodies shall have the right to request the needed information about the object of
taxation from the persons that perform the registration of the patrimonial rights or the transactions with
real-estate (including notary bureaus, communal services, brokers), as well as from the real-estate
owners.

(4) The subject of taxation shall be obliged to present to the cadastral bodies the information needed for
real-estate evaluation, which shall be effected in accordance with the legislation.

(5) In the event that the subject of taxation refuses to present the needed information for real-estate
evaluation, the evaluation shall be performed on the basis of the information held by the cadastral bodies
about similar objects representing real-estate.

Article 286 Note on the tax payment

The note on payment of the tax calculated for the real estate of the physical persons who do not carry out
entrepreneurial activity, as well as of the farmers’ households, shall be delivered to each subject of
taxation by the service of the city-hall, in Chisinau and Balti municipalities - by the territorial state tax,
the latest 60 days prior to expiration of the first term of the tax payment.

Article 287 Management of the fiscal cadastre (register)
The State Tax Inspectorate, on the basis of the data presented by the cadastral bodies, shall organize the
management of the fiscal register and monitoring of the information about each subject and object of
taxation. The State Central Fiscal Inspectorate shall establish the form and methods of management of
the fiscal register and delivery of the information it comprises.


                                                                                                         Enclosure

    Value of the real-estate meant for dwelling (apartments and individual dwelling houses), of the land adherent
               to it from municipalities and cities, including from the localities which are part of them
                           , except the villages (communes), value within the limits of which
                          the exemption from real-estate payment is granted, according to the
                                        art.283 paragraph(2) from the Tax Code

    No.        Name of the administrative-territorial units *      Limit of the value of the real-estate exempted
    crt.                                                                    from the real-estate tax, lei
     1                               2                                                    3
     1.    Chişinău municipality                                                      380000
     2.    Bălţi municipality                                                         156000
     3.    city Anenii Noi                                                             53000
     4.    city Basarabeasca                                                           43000
     5.    city Briceni                                                                71000
     6.    city Lipcani                                                                51000
     7.    city Cahul                                                                 138000
     8.    city Cantemir                                                               31000
     9.    city Călăraşi                                                               32000
    10.    city Căuşeni                                                                77000
    11.    city Căinari                                                                14000
    12.    city Cimişlia                                                               66000
    13.    city Criuleni                                                               55000
    14.    city Donduşeni                                                              40000
    15.    city Drochia                                                                84000
    16.    city Edineţ                                                                 80000
    17.    city Cupcini                                                                49000
    18.    city Făleşti                                                                49000
    19.    city Floreşti                                                               84000
    20.    city Ghindeşti                                                              23000
    21.    city Mărculeşti                                                             24000
    22.    city Glodeni                                                                40000
    23.    city Hînceşti                                                              145000
    24.    city Ialoveni                                                              185000
    25.    city Leova                                                                  35000
    26.    city Iargara                                                                14000
    27.    city Nisporeni                                                              39000
    28.    city Ocniţa                                                                 17000
    29.    city Otaci                                                                  24000
    30.    city Frunză                                                                 14000
    31.    city Orhei                                                                 100000
    32.    city Rezina                                                                 49000
    33.    city Rîşcani                                                                29000
    34.    city Costeşti                                                               15000
    35.    city Sîngerei                                                               33000
    36.    city Biruinţa                                                               15000
    37.   city Soroca                                                                   82000
    38.   city Străşeni                                                                116000
    39.   city Bucovăţ                                                                  27000
    40.   city Şoldăneşti                                                               23000
    41.   city Ştefan Vodă                                                              45000
    42.   city Taraclia                                                                 26000
    43.   city Teleneşti                                                                29000
    44.   city Ungheni                                                                  87000
    45.   city Corneşti                                                                 49000
    46.   municipiul Comrat                                                            122000
    47.   city Ceadîr-Lunga                                                             61000
    48.   city Vulcăneşti                                                               32000

          * Including localities which are part of them, except villages (communes).

CHIEF OF THE
PARLIAMENT                                                              Dumitru Diacov

                                                 TITLE VII
                                               LOCAL TAXES

                                             Chapter I
                                        GENERAL PROVISIONS

Article 288 Terms

In the context of the present title, the following terms are defined:

1) Local Tax – obligatory payment made to the budget of the administrative-territorial unit.

2) Maximum rate of the local tax – ad valorem rate in percents from the taxable base of the object of
taxation or the absolute sum, established in accordance with the present title.

3) Actual rate of the local tax – ad valorem rate in percents from the taxable base of the object of taxation
or the absolute sum, established by the local public administration authority at adoption of the budget of
the respective territorial-administrative unit, but which cannot be higher than the maximum rate
established according to the present title.

4) Commercial and/or social services unit - retail, en-gross, public nutrition and/or social services unit.

5) Social services – special social services indicated in the section G group 50.2 and section O class
92.71 and division 93 of the Classifier of the activities of the economy of Moldova (CAEM).

6) Publicity producer - the person who gives the needed form for placement and distribution to the
publicity information.

7) Publicity distributor – the person who provides publicity placement and distribution through
informational means.

8) External publicity – publicity made through systems of visual communication that include posters,
panels, stands, installations and constructions (situated separately or suspended on the walls and building
roofs), three-dimensional firms, luminous firms, electromechanical and electronic suspended drawings,
other technical means.

9) Social publicity – publicity that represents the society and state interests in promoting a healthy
lifestyle, health protection, environment protection, keeping the integrity of the energetic resources,
social protection of the population, which don’t have a lucrative purpose and follows philanthropic
objectives and those of social importance.

10) Average number of staff employees – actual number for an operating period, depending on the
indices of the staff number.

11) Parking – garaging the motor vehicle on a special territory or in a special building, meant for
garaging and preserving the transportation means and offering related services against payment.

12) Market services – services offered by markets against payment.

13) Local symbols – coat of arms of a city or of another type of locality, its name or the image of
architectural monuments, historical monuments.
14) Transport unit – any motor coach, bus, microbus, motor vehicle, motorcycle, scooter, motor bicycle,
lorry, tractor, trail tractor, another agricultural technique, and vehicle with animal traction.

15) Deliberative authority of the local public administration – the representative authority of the
population administrative-territorial unit (local council).

16) Executive authority of the local public administration – representative authority of the population
territorial-administrative and executive unit of the local council (mayor).

Article 289 Relations regulated by the present title

(1) The present title determines the procedure and principles of establishment, change and annulment of
    the local taxes, their maximum rates, their payment procedure, criteria for granting fiscal facilities.

(2) The system of local taxes regulated by the present title includes:
    a) territory improvement tax;
    b) tax for the organization of auctions and lotteries on the territory of the administrative-territorial
       unit.
    c) publicity placement tax;
    d) tax of application of the local symbols;
    e) tax for the commercial and/or social services units;
    f) market tax;
    g) accommodation tax;
    h) balneal tax;
    i) tax for the passenger auto- transport services on the territory of municipalities, cities and villages
       (communes)
    j) parking tax;
    k) tax for those who have dogs;
    l) tax for the improvement of the localities from the border zone which have customs border
       bureaus.

(3) The local taxes mentioned in the paragraph (2) shall be applied by the authorities of the local public
administration;
                              CHAPTER II
               SUBJECTS OF TAXATION AND TAXABLE BASE

Article 290 The subjects of taxation

The subjects of taxation are for the:
a) territory improvement tax – juridical or physical persons, registered as entrepreneurs, that have
taxable base;
b) tax for the organization of auctions and lotteries on the territory of the administrative-territorial unit –
juridical or physical persons registered as entrepreneurs-organizers of the auctions and lotteries;
c) publicity (advertising) placement tax – juridical or physical persons, registered as entrepreneurs who
offer services of placing publicity advertisements through cinema, video, telephone, telegraph, telex
services, in the transport means, through other means, as well as those who place the external publicity
by means of posters, panels and other technical means.
d) tax of application of the local symbols – juridical or physical persons, registered as entrepreneurs, who
apply the local symbols on the manufactured production;
e) tax for the commercial and/or social services units – juridical or physical persons, registered as
entrepreneurs, who own commercial and/or social services units;
f) market tax - juridical or physical persons, registered as entrepreneurs – market administrators;
g) accommodation tax - juridical or physical persons, registered as entrepreneurs, who offer
accommodation services;
h) balneal tax - juridical or physical persons, registered as entrepreneurs, who offer leisure and treatment
services;
i) tax for passenger auto-transport services on the territory of the municipalities, cities and villages
(communes) - juridical or physical persons, registered as entrepreneurs, who offer passenger auto
transport services on the municipal, city and village itineraries.
k) tax for those who have dogs – physical persons who live in apartments houses – state apartments,
cooperative apartments, privatized apartments;
l) tax for the improvement of the localities from the border zone which have customs border bureaus –
juridical and physical persons who have transport units which come in and out of the Republic of
Moldova.

Article 291 Taxable base

Taxable base represents for the:
a) territory improvement tax - the average per quarter number of employees and/or founders of the
enterprises in case they are working in the founded enterprises, but they are not included in the actual
number per quarter of employees.
b) ) tax on the auction and lottery organization on the territory of the administrative-territorial unit – the
income from sales of the declared goods at the auction or the value of the issued lottery tickets.
c) publicity placement tax, except publicity placed in the protection zone of the roads outside the
perimeter of localities:
- income from sale of placement services and/or distribution of the publicity advertisements through
cinema, video, telephone, telegraph, telex, transportation means services and through other means;
- external publicity area;
d) tax of local symbols’ application– income from the sales of the manufactured production on which the
local symbols are applied;
e) tax for the commercial and/or social services’ units, except those which are totally in the zone of the
roads’ protection – outside the perimeter of localities the area covered by the commercial and social
services’ units, their location, the type of the commercialized goods and offered services;
f) market tax – income from selling the market services offered by the market administrator when
selling places for commercial purpose;
g) accommodation tax –income from selling services offered by the accommodation structures.
h) balneal tax - income from selling leisure and treatment tickets;
i) tax for passenger auto-transport services on the territory of municipalities, cities and villages
(communes) – transport units, depending on the number of places;
j) parking tax – income from selling the parking services;
k) tax for those who have dogs – number of owned dogs during one year;
l) tax for the improvement of the localities from the border zone which have border customs bureaus –
number of transport units which come in and/or out of the Republic of Moldova.


                                Chapter 3
                       QUOTES, MANNER OF CALCULATION AND
                         PAYMENT OF THE LOCAL TAXES

Article 292. Quotes and payment terms of the local taxes

(1) The maximum quote and terms of payment of local taxes and presentation of the fiscal report on local
taxes for the subjects of taxation are those established in the enclosure to the present title. The individual
entrepreneur, the peasant (farmer) household, of which annual average number of employees during the
fiscal period does not exceed 3 persons and which are not registered as VAT payers, shall submit until
31st of March of the year following the reporting fiscal year, an unified fiscal report regarding the local
taxes, with payment of the taxes within the same period.
(2) The actual quote of the local taxes shall be established by the local public administration authority
depending on the characteristics of the subjects of taxation.

Article 293. Calculation manner

(1) The calculation of the taxes listed in the article 291, except those stipulated in the item a)- in the part
concerning the peasant households (farmers) and in the item k) and l), shall be made by the subjects of
taxation, taking into consideration the taxable base and their actual quotes.

(2) The calculation of taxes stipulated in the art.291 item a) – in the part concerning the peasant
households (farmers) and in the item k) and l) shall be made by the bodies empowered by the authority of
the local public administration.

(3) The payment of the taxes mentioned in the art.291 is made by the subjects of taxation.

4) If the subject of taxation stipulated in the art.291 item c) second line and item c) is located partially in
the zone of roads’ protection, the tax shall be calculated by the taxpayer individually, proportionally to
the area located on the territory of the local public administration.

Article 294 Payment of the local taxes

(1) The subjects of taxation shall transfer the local taxes to the income treasury account of the
administrative-territorial unit budget.

(2) The peasant households can pay the tax for improvement of the territory directly to the body
empowered by the authority of the local public administration

(3) Tax for the owners of dogs and tax for improvement of the localities from the border zone which have
customs border bureaus can be paid to the body empowered by the authority of the local public
administration.
                               CHAPTER IV
               FACILITIES FOR THE PAYMENT OF THE LOCAL TAXES

Article 295 Tax exemption

Shall be exempted from the payment:
a) of all the local taxes – the public authorities and institutions financed from the budgets of all levels;
b) all the local taxes – diplomatic missions and other missions of the same character, as well as
international organizations, in accordance with the international treaties of which Republic of Moldova is
party;
c) all the local taxes – owners or holders of goods requisitioned for public interest, for the period of
requisition, according to the legislation;
d) tax on auction and lottery organization on the territory of the administrative-territorial unit –
organizers of actions aimed at ensuring reimbursement of debts on credits, covering the damages, paying
the budget debts, selling the state patrimony and patrimony of the administrative-territorial units;
e) tax on publicity placement – producers and distributors of social publicity and publicity distributed
through mail;
f) tax of territory improvement – founders of peasant households who reached pension age;
g) tax for commercial and/or social service units – persons that practice activities in the field of funerals
and offer similar services, including those who manufacture coffins, garlands, artificial flowers;
h) tax for improvement of localities placed on the border zone and have border customs bureaus –
physical persons with circulatory system problems who use auto vehicles with manual driving, as well as
vehicles that transport humanitarian help.

Article 296 Exemption from payment of local taxes and facilities granted by the local public
administration authority

The local public administration authority has the right, if it makes simultaneously the corresponding
modifications in the budget of the administrative-territorial unit:
a) to grant exemptions to the subjects of taxation additionally to those mentioned in the article 295;
b) to allow postponement of local tax payment for the respective fiscal year;
c) to stipulate facilities for payment of the local taxes for the social-vulnerable categories of the
population.

                               CHAPTER V
                      ADMINISTRATON OF THE LOCAL TAXES

Article 297 Obligations of the local public administration authority

(1) Deliberative local public administration authority can apply all the local taxes or only a part of them,
depending on the possibilities and needs of the administrative-territorial administration.

(2) Deliberative local public administration authority has no right to apply other local taxes than those
stipulated by the present title or set up a quote higher than the established maximum quotes.

(3) The local taxes shall be applied, modified or annulled from the administered territory by the
deliberative local public administration authority with the aid of the Department of Finance and state
fiscal inspectorate, simultaneously with the adoption or modification of the budget of the administrative-
territorial unit.
(4) The executive local public administration authority shall monitor the decisions of the local council
regarding the application of the local taxes on the administered territory, submit them to the State Fiscal
Service and familiarize the taxpayers with them.

Article 298 Responsibility
(1) Certain bodies empowered by the local public administration authorities shall be responsible for
transferring in due time the local taxes to the budgets of the administrative-territorial units, except those
stipulated in the art.289 item a) – in the part regarding the peasant households, item k) and l), as well as
for submitting the fiscal reports.
(2) The bodies empowered by the local public administration authorities shall be responsible for
transferring in due time to the budgets of the administrative-territorial units the local taxes stipulated in
the art.289 item a) in the part regarding the peasant households, item k) and l).

(3) Territorial State Fiscal Inspectorates shall exercise the control over the manner in which the local
public administration authorities execute the present title.

(4) The taxes that have not been transferred in due time shall be collected according to the legislation.

CHAIRWOMAN
OF THE PARLIAMENT                                                    EUGENIA OSTAPCIUC

Chisinau, 1st of April, 2004
Nr. 93-XV

                                                                                             Enclosure

                       Local taxes, their terms of payment and terms of
                                presentation of the fiscal reports

Name of the tax     Taxable base         Maximum              Terms of tax payment and
                    of the subject of    quote                presentation
                    taxation                                  of the fiscal reports by
                                                              the subjects of taxation
                                                              and empowered bodies
        1                   2                     3                    4
a)Tax for           Average per          40 lei annually      Per quarter, until de last day of
improvement of      quarter number       for each             the month immediately
the territory       of employees         employee             following the administrative
                    and/or founders                           quarter (accounting period)
                    of the enterprises
                    in case they are
                    working in the
                    founded
                    enterprises, but
                    are not included
                    in the actual per
                    quarter staff of
                    employees

b)     Tax    of The income from 0,1%
organization of selling the
auctions     and declared goods at
lotteries on the    the auction or the
territory of the    value of the
administrative-     issued lottery
territorial unit    tickets

c) Tax on           Income from        5%                    Per quarter, until de last day of
publicity           selling the                              the month immediately
placement           services of                              following the administrative
(except the         placement of the                         quarter (accounting period)
publicity placed    publicity
integrally in the   advertisements
protection zone     through cinema,
of roads)           video, telephone,
                    telegraph, telex
                    services, in the
                    transportation
                    means, and other
                    means, except
                    the placement of
                    external publicity

                    External             500 lei per year    Per quarter, in equal
                    publicity area       for each square     installments, until the last day
                                         meter               of the month immediately
                                                             following the administrative
                                                             quarter (accounting period)



d) Tax of
application of the The income from       0,1%                Per quarter, until de last day of
local symbols      selling the                               the month immediately
                   manufactured                              following the administrative
                   production on                             quarter (accounting period)
                   which the local
                   symbols have
                   been applied



e) Tax for          The area             - Chisinau city     Per quarter, until de last day of
commercial          occupied by the      - 12000 lei         the month immediately
and/or social       commercial           annually for each   following the administrative
services units      and/or social        trade and/or        quarter (accounting period)
(except those       services units,      social services
which are placed    their location,      units
entirely in the     type of
protection zone     commercialized       -50 000 lei
of roads).          goods and            annually for each
                    offered services     trade unit and/or
                                         social services
                                         unit indicated in
                                  the section O
                                  class 92.71 of the
                                  Classifier of
                                  Activities of the
                                  Economy of
                                  Moldova from
                                  February 9th,
                                  2000

                                  - Balti city –
                                  other cities –
                                  7200 lei annually
                                  for each trade
                                  unit and/or social
                                  services’ unit

                                  - 30 000 lei
                                  annually for each
                                  trade unit and/or
                                  social services
                                  unit indicated in
                                  the section O
                                  class 92.71 of the
                                  Classifier of
                                  Activities of the
                                  Economy of
                                  Moldova from
                                  February 9th,

                                  - cities,
                                  communes
                                  (villages) – 3600
                                  lei annually for
                                  each trade unit
                                  and/or social
                                  services unit
                                  - 15000 lei
                                  annually for each
                                  trade unit and
                                  social services’
                                  unit indicated in
                                  the section O
                                  class 92.71 of the
                                  Classifier of
                                  Activities of the
                                  Economy of
                                  Moldova from
                                  February 9th,
                                  2000

                The income from   20%                  Per quarter, until de last day of
f) market tax
                selling the                            the month immediately
                  market services                         following the administrative
                  offered by the                          quarter (accounting period)
                  market
                  administrator
                  when selling
                  places for the
                  commercial
                  activity


g) Tax for        Income from         5%                  Per quarter, until de last day of
accommodation     selling the                             the month immediately
                  services offered                        following the administrative
                  by the                                  quarter (accounting period)
                  accommodation
                  structures




                  Income from         1%                  Per quarter, until de last day of
h) Balneal tax    selling the leisure                     the month immediately
                  and treatment                           following the administrative
                  tickets                                 quarter (accounting period)




i) Tax for the     Transport unit,    - monthly, 500      Monthly, until the date of 5th
passenger auto-    depending on the   lei for each auto   of the following month
transport services number of places   vehicle with the
on the territory                      maximum
of municipalities,                    capacity of 8
cities and                            places inclusive
villages                              -monthly, 1000
(communes)                            lei for each auto
                                      vehicle
                                      (microbus) of the
                                      capacity between
                                      9 and 16 places
                                      inclusive
                                      -monthly, 1500
                                      lei for each
                                      autobus of the
                                      capacity between
                                      17 and 24 places
                                      inclusive
                                      -monthly, 1900
                                      lei for each bus
                                      of the capacity
                                      between 25 and
                                      35 places
                                      inclusive
                                      -monthly, 2100
                                      lei for each bus
                                      of the capacity
                                      more than 35
                                      places


                   Income from        10%                  Per quarter, until the last day
                   rendering                               of the immediately following
j) Tax for         parking services                        month after the administrative
parking                                                    quarter




                   Number of          -annually, 9 lei     Per quarter, until the last day
                   owned dogs         for one dog          of the immediately following
                   during one year    -annually, 27 lei    month after the administrative
k) Tax from the                        for 2 dogs          quarter
dog owners                            -annually, 90 lei
                                      for each dog if
                                      there are more
                                      than 2 dogs in
                                      possession



                   Number of          -10 lei for one      The payment is made when
l) Tax for         transport units    motor coach,         entering and/or leaving the
improvement of                        autobus,             Republic Moldova. The
the localities                        microbus, motor      presentation of the fiscal
from the border                       lorry, tractor       reports is made on a quarter
zone which have                       with trailer         basis, until the last day of the
customs border                        -5 lei for one car   immediately following month
bureaus                               -3 lei for one       after the administrative
                                      tractor and other    quarter.
                                      agricultural
                                      technique,
                                      motorcycle,
                                      vehicle with
                                      animal traction



Note: If the object of taxation in the administrative period is absent, the fiscal report shall not be
submitted.

                                       TITLE VIII
                             TAXES FOR THE NATURAL RESOURCES
                                          Chapter 1
                                      GENERAL PROVISIONS


Article 299 Notions

In the context of the present title, the following notions shall be defined:
1) Natural resources – water collected from any sources (springs), useful minerals (mineral deposits),
wood delivered on foot.

2) Useful minerals – natural mineral deposits which are found in the subsoil.

3) Subsoil – part of the terrestrial layer situated lower than the soil layer and bottom of the water basins,
up to depths accessible for study and geological revaluation.

4) Underground spaces for underground constructions – caves, artificial underground spaces, mines from
which useful minerals have been extracted.

5) Underground constructions – mines from which useful minerals are being extracted or have been
extracted, other constructions (objects) executed in the subsoil for the entrepreneurship activity.

6) Water consumption norm – quantity of water necessary for carrying out entrepreneurial activity and/or
utilization at hydro stations

7) Water to be bottled in bottles and other containers, to be used for treatment purposes and as mineral,
drinking and table water – the water assigned to any of these categories on the basis of the certificate of
water bottling and production, in accordance with international standards.

8) Collected water – water extracted from aquatic objects placed within the borders of the Republic of
Moldova

9) Surface waters – sources (springs) located in the aquatic places from the surface of the earth (rivers,
natural and artificial lakes, waters which are temporary placed on the surface of the aquatic places)
10) Consumed water – water used for carrying out one’s own activity of manufacturing, execution of
works and service rendering.

Article 300 Relations regulated by the present title

(1) The present title envisages the types of taxes, quotes, method of calculation and payment referring to
the natural resources, as well as the facilities granted for their application

(2) The system of taxes for the natural resources regulated by the present title includes
a) tax for the water;
b) tax for carrying out geological prospecting
c) tax for carrying out geological explorations
d) tax for extraction of useful minerals
e) tax for usage of underground spaces for building underground objects other than those meant for
extraction of useful minerals;

f) tax for using the underground constructions to carry out entrepreneurship activities, other than those of
extracting useful minerals;
g) tax for the wood released on foot.

Article 301 Terms of payment and presentation of fiscal reports

(1) The payers of taxes for natural resources shall submit to the territorial state fiscal inspectorate the
respective report and shall transfer to the budgets of the administrative-territorial units the mentioned
taxes until the last day of the month following the administrative quarter, unless the present law stipulate
otherwise.

(2) Payers of the water tax who consume up to 100 m3 of water during one year shall pay the water tax
and submit the respective report once a year until the 31st of December of the respective year.

(3) In case the object of taxation established by the present title is absent, the report on tax calculation
shall not be submitted to the territorial fiscal body.

                                            Chapter 2
                                        TAX FOR THE WATER
Article 302 Subjects of taxation

The subjects of the tax for water are juridical and physical persons registered as entrepreneurs, who
extract water from the fund of water and those who use water at hydro stations.

Article 303 Object of taxation

The object of taxation is the volume of the water extracted from the water patrimony or volume of water
used at hydro stations.

Article 304 Taxation quotes

The tax quotes are established according to the enclosure no.1 to the present title.

Article 305 Method of tax calculation

(1) The tax for water is calculated independently by the subjects of taxation, departing from the volume
of extracted water or water volume used by hydro-stations, according to the data shown by meters or, in
their absence, according to the norms of extraction and/or utilization.

(2) The working out of norms of water extraction and/or utilization and control over the quantity of
extracted water is made by the state body empowered by the Government.

Article 306 Tax facilities

The tax shall not be applied for the:

a) water extracted from the subsoil simultaneously with minerals or extracted for prevention (liquidation)
of harmful actions of these waters;
b) water extracted and delivered to the population, public authorities and institutions financed from the
budgets of all levels;
c) Water extracted for extinguishing fire outbreaks or delivered for these purposes;
d) Water extracted by the organizations of blind people, deaf people, disabled people, as well as by
medical-sanitary public institutions or delivered to them;
e) Water extracted by the enterprises from the penitentiary system or delivered to them.

                                 Chapter 3
               TAX FOR CARRYING OUT GEOLOGICAL PROSPECTING

Article 307 Subjects of taxation

The subjects of the tax for carrying out geological prospecting are juridical and physical persons who
perform geological prospecting, except institutions financed from the budgets of all the levels.

Article 308 Object of taxation

The object of taxation is the contractual value of the works for carrying out geological prospecting

Article 309 Taxation quote

The quote of the tax for carrying out geological prospecting shall be established in the size of 2% from
the contractual value of works.

Article 310 Method of tax calculation and payment

The tax shall be calculated by the payer himself and shall be paid in full size to the budget of
administrative-territorial unit until the works of the geological prospecting start.

                              Chapter 4
               TAX FOR CARRYING OUT GEOLOGICAL EXPLORATIONS

Article 311 The subjects of taxation

The subjects of taxation for carrying out geological explorations are juridical and physical persons, who
perform geological explorations, except institutions financed from the budgets of all levels.

Article 312 Object of taxation

The object of taxation is the contractual value of the works for carrying out geological explorations.

Article 313 Quote of taxation
The quote of the tax for carrying out geological explorations is established in the size of 5% from the
contractual value of works.

Article 314 Method of tax calculation and payment

(1) The tax shall be calculated by the payer individually and shall be paid in full size to the budget of
territorial-administrative unit until the works of geological explorations start.

(2) The tax on exploration prospecting shall not be collected if it is carried out within the mining
perimeter of a running mining extraction enterprise.

                                     Chapter 5
                      TAX FOR EXTRACTION OF USEFUL MINERALS

Article 315 Subjects of taxation
The subjects of taxation for extraction of useful minerals are juridical and physical persons, regardless of
their type of ownership and juridical form of organization, registered as entrepreneurs who carry out the
extraction of useful minerals.

Article 316 Objects of taxation
The object of taxation is the cost of the extracted useful minerals

Article 317 Taxation quotes
The taxation quotes shall be established in accordance with the enclosure no.2 to the present title.

Article 318 Method of tax calculation and payment

(1) The tax shall be calculated by the payer himself and shall be paid to the budget of the administrative-
territorial unit for each separate quarter.
(2) The quantity of the extracted useful mineral and the losses resulted in the process of its extraction
shall be taken into account at tax calculation.
(3) The losses resulted in the process of extraction of useful minerals shall refer to the consumption or
expenditures.
(4) The technical losses in the protection pillars and ceiling of the underground mining excavations,
which in accordance with the project ensure the human security and exclude the collapsing of the
terrestrial surface, shall not be assigned to the losses related to the process of extraction of useful
minerals.

Article 319 Facilities
The enterprises from the penitentiary system are exempted from tax payment.



                           Chapter 6
TAX FOR USING UNDERGROUND SPACES FOR BUILDING UNDERGROUND OBJECTS,
OTHER THAN THOSE MEANT FOR EXTRACTION OF USEFUL MINERALS


Article 320 Subjects of taxation

The subjects of the tax for using underground spaces for building underground objects, other than those
meant for extraction of useful minerals are juridical and physical persons, regardless of their type of
ownership and juridical form of organization, registered as entrepreneur.

Article 321 Object of taxation
The object of taxation is the contractual value of the construction works of the place.

Article 322 Taxation quote
The taxation quote is established in the size of 3% from the contractual value of the construction works
of the place.

Article 323 Method of tax calculation and payment
The tax shall be calculated by the payer himself and shall be paid in full size to the budget of the
administrative-territorial unit until the construction works start.

Article 324 Facilities
The enterprises from the penitentiary system and enterprises that have a remarkable scientific, cultural
and educational value, this list being approved by the Government, are exempted from tax payment.

                                 CHAPTER 7
            TAX FOR USING UNDERGROUND CONSTRUCTIONS FOR CARRYING OUT
       ENTRPRENEURSHIP ACTIVITIES, OTHER THAN THOSE MEANT FOR EXTRACTION
                              OF USEFUL MINERALS

Article 325 Subjects of taxation

The subjects of taxation for using the underground constructions with the purpose of carrying out
entrepreneurship activities, other than those meant for the extraction of the useful minerals, are the
juridical and physical persons, regardless of their type of ownership and legal form of organization,
registered as entrepreneurs.

Article 326 Object of taxation
Object of taxation is the balance sheet value of the used underground constructions

Article 327 Quote of taxation
The quote of taxation is established in the size of 0,2% from the balance sheet value of the underground
construction.

Article 328 Method of tax calculation and payment
The tax shall be calculated by the taxpayers independently and shall be paid to the budget of the
administrative-territorial unit for each quarter separately during the whole period of using the
constructions.

329 Facilities
The enterprises from the penitentiary system and enterprises that represent a remarkable scientific,
cultural and educational value, which list is approved by the Government, are exempted tax payment.


                                             Chapter 8

                        TAX FOR DELIVERED STANDING TIMBER

Article 330 Subjects of taxation
The subjects of the tax for delivered standing timber from the forests of the forest patrimony, as well as
from the forest vegetation, which is not part of the forest patrimony, are the forest beneficiaries juridical
and physical persons, regardless of their type of property and legal form of organization and the forest
beneficiaries physical persons residents who do not carry out entrepreneurship activity.

Article 331 Object of taxation
The object of taxation is the volume of delivered standing timber when cut from the forests of the forest
patrimony and forest vegetation, which is not part of it.

Article 332 Taxation quotes
The quotes of taxation shall be established depending on the forest species, group of the wooden material
and purpose of the delivered standing timber, according to the enclosure no.3 to the present title.

Article 333 Method of tax calculation and payment
(1) The forest beneficiaries juridical and physical persons, regardless of their type of property and legal
form of organization, shall calculate by themselves the tax and shall pay it to the budget of the
administrative-territorial unit within the terms established in the article 301.

(2) The forest beneficiaries physical persons who do not carry out entrepreneurship activity shall pay the
tax until they receive the related authorization (authorization to use the forest or forest ticket), issued by
the bodies of the forest household.

Article 334 Facilities
Tax for the delivered standing timber shall not be applied if it was harvested:

a) by forest enterprises when carrying out cuttings for the purpose of ecological restoration, conservation
and secondary products, when carrying out forest planning, research and engineering works for the needs
of the forest household, liquidation of the effects of the natural calamities, as well as other forest works
connected with tending the forests;
b) in the process of carrying out the activities mentioned in the item a) from the current title, when the
respective forest enterprise is carrying out these activities on the territory of another forest enterprise.

PARLIAMENT                                            Marian Lupu
CHAIRMAN

Chisinau, 5th of May 2005
No.67-XVI


                                                                                Enclosure no. 1

                              The tax quotes for water

The tax for the water shall be collected in the following amount:
1) for each 1m3 of water extracted from the water patrimony – 1 lei

2) for each 1 m3 of extracted natural mineral water, of other kind of extracted water meant for bottling –
16 lei

3) for each 10 m3 of water used by hydro-stations – 0,06 lei

2. For the utilization of 1 m3 of water collected from the surface springs at the irrigation of the fields, the
tax shall be collected in the amount of 0,10 lei.

                                                                                     Enclosure 2

                       Quotes of the taxes for extraction of useful minerals

                                                                    Tax, in percents from the
№                             Used minerals                         cost of the extracted minerals

1.          Metalliferous       raw-materials      and     non-                 7
            metalliferous raw-materials for the industry
            (granite, diatomite, tri-poles, founded limestone,
            bentonite clay, difficult to melt, refracted and of
            modeling      type,    raw-materials      for   the
            manufacturing of quartz and siliceous glass).


2.          Non-metalliferous building materials (raw-                     6
            materials for cement, chalk, face stone, stone that
            was cut, rubble stone, broken stone, building
            sand, mixtures of broken stones with sand, prund,
            raw-material for haydite, clay for brick etc.)

3.          Oil                                                            20
4.          Gas                                                            20
5.          Gypsum, grit stone                                             10




                                                                                     Enclosure 3

                           Quotes of the taxes for delivered standing timber

                                                          Tax for 1 m3, in lei
Nr.             Forest species            Wood for work                          Brackets
                                          (without bark)                         (with bark)
                                          big          average       small
1.    Pine tree                           16           11            6           2
2.    Common spruce                       14           10            5           2
3.    Oak, ash, maple, beech              28           20            10          3
4.    Acacia                              25           19            9           3
5.    Apricot tree, cherry tree, mulberry 43           30            16          3
      tree, apple tree, pear tree
6.    Birch, elm, lime tree, hornbeam, 16              11            6           2
      honey locust
7.    Aspen tree, poplar, white willow    10           7             4           2
8.    Nut tree                            52           37            26          2
9     Willow tree                         -            -             2           -
10.   Different types of hard trees       22           18            8           2
11.   Different types of soft trees       9            6             3           2
12.   Different types of resinous trees   12           9             4           2


The amount of the tax for brackets from the crown of the tree represents 40 %, for twigs and branches –
20% from the tax for brackets of the respective species.
For the wood from knots and cleared roots meant for their use as fuel for fire, the amount of the tax
represents 20% from the established tax for brackets of the respective species.


                                              Title IX
                                             Road taxes

                                        Chapter I
                                    GENERAL PROVISIONS
Article 335 The system of road taxes
(1) The road taxes are collected for using roads and/or protection zones of the roads outside the perimeter
of localities.
(2) The system of road taxes includes:
a) tax for using the roads by motor vehicles registered in the Republic of Moldova;
b) tax for using the roads of the Republic of Moldova by motor vehicles unregistered in the Republic of
Moldova;
c) tax for using the roads by motor vehicles, the total weight, load bearing on axle or other dimensions of
which exceed the admissible limits
d) tax for using the protection zone of the roads outside the perimeter of localities for carrying out
construction and assembling works;
e) tax for using the protection zone of the roads outside the perimeter of localities for placing external
advertising;
f) tax for using the protection zone of the roads outside the perimeter of localities for placing objects
which render road services;

(3) The subjects of taxation pay the road taxes to the income treasury accounts of the state budget,
according to the budgetary classification.

(4) The paid road taxes are included in the expenditures to be deducted in accordance with the title II of
the present code.

336 General notions
In the context of the present title, the following notions are defined:
1) Agricultural activity – production activity, service rendering, execution of works in the field of plant
cultivation, horticulture and cattle breeding.
2) Motor vehicle - mechanical system with auto propulsion, except the one which circulates on rail,
which serves normally for transportation of passengers, luggage, goods or which performs any other
works related to transportation; this notion does not include agricultural tractors.

3) Mixed motor vehicle – motor vehicle meant, by its construction, for passenger and goods’
transportation in separate compartments.

4) Motor vehicle for special usages on chassis of motor vehicle or micro-bus – motor vehicle, other than
that created mainly for passenger or goods’ transportation, which, by construction and equipping, is
provided on chassis of motor vehicle or micro-bus (motor vehicle of medical assistance, motor vehicle of
technical assistance, motor vehicle-generator, motor vehicle-laboratory, radiological station, radio van
etc.)

5) Motor vehicle for special usages on chassis of truck – motor vehicle, other than that created mainly for
passenger or goods’ transportation, which, by construction and equipping, is provided on chassis of
motor truck (power crane truck, motor vehicle of technical assistance and intervention, of pumping, of
cleaning the roads, of cleaning the snow, of emergency repairs, of fire extinguishing, of cleaning the
streets, of spreading materials, concrete-mixer auto truck, auto repair shop, auto radiological entity etc).

6) Motor vehicle registered in the Republic of Moldova – motor vehicle which is subjected to state
registration in the Republic of Moldova, on the basis of which the authorities in charge of the Republic of
Moldova authorize participation of the motor vehicle in the road traffic or in the technological process.

7) Motor vehicle, the total weight, load bearing on axle or the dimensions of which exceed the admissible
limits for carrying out on roads the transportation of heavy and/or voluminous weights established by the
norms in force.
8) Usage of roads by the motor vehicles unregistered in the Republic of Moldova - entrance on the
territory of the Republic of Moldova or transiting the territory of the Republic of Moldova of motor
vehicles which do not have certificate of state registration issued by the authorities in charge of the
Republic of Moldova.

9) Dangerous goods – goods stipulated by Government decision, which can put in danger the human
being and the environment, by their physical and chemical properties.

10) Motorcycle – motor vehicle with two wheels, with or without side car, having the motor cylindrical
volume greater than 50 cm3, as well as motor vehicle with three symmetrical wheels with respect to its
longitudinal axis (motor car), having the motor cylindrical volume greater than 50 cm3 and the equipped
mass lower than 400 kg.

11) Motor vehicle owner – physical or legal person to whom the motor vehicle belongs.

12) Transit (transiting) – crossing the territory of the Republic of Moldova by the motor vehicle in the
event that neither the point of departure of the motor vehicle, nor its destination point is in the Republic
of Moldova.

13) Protection zone of the roads outside the perimeter of localities – land strip adjacent to the roads
outside the perimeter of localities, the width of which is established depending on the purpose and
location of these roads.

                                             Chapter II
              TAX FOR USING THE ROADS BY MOTOR VEHICLES REGISTERED IN
                               THE REPUBLIC OF MOLDOVA
Article 337 Subjects of taxation
The subjects of taxation are the physical persons and legal entities owners of motor vehicles registered in
the Republic of Moldova.

Article 338 Object of taxation
(1) As object of taxation are motor vehicles registered permanently or temporary in the Republic of
Moldova used by the physical persons for personal purposes, but by the physical and juridical persons
who conduct entrepreneurial activity – in the entrepreneurial activity: motorcycles, motor vehicles,
automobiles, motor trucks, motor vehicles for special usages on chassis of automobile or microbus,
motor vehicles for special usages on chassis of motor truck, motor tractors, trailers, semi-trailers,
microbuses, buses, tractors, any other motor vehicles with auto propulsion.

(2) As object of taxation are not:
a) tractors and trailers used in the agricultural activity;
b) motor vehicles for public transportation on electric drive.

Article 339 Taxation rates
(1) The tax rates are established according to the enclosure no.1 to the present title.

(2) For reequipped motor vehicles, the tax rates are established according to the enclosure no.1 to the
present title, starting with the category of reequipped motor vehicle and its technical characteristics,
specified in the certificate of vehicle registration.

Article 340 Fiscal period and terms of tax payment
(1) Fiscal period is the calendar year.
(2) The tax is paid for the fiscal period as single and full payment.
(3) The taxation subjects shall pay the tax:
a) at the date of state registration of the vehicle;
b) at the date of current state registration of the motor vehicle, if until this date the tax has not been paid.
c) at the date of conducting the annual technical revision/testing of the motor vehicle, if until date the tax
has not been paid.
(4) The registration, as well as the technical revision/technical testing of the vehicle, without presentation
of the payment document which confirms the tax payment for the current year, shall not be performed.

Article 341 Manner of tax calculation and payment
(1) The tax shall be calculated by the subject of taxation individually, depending on the object of taxation
and taxation rate.

(2) In case of divergences on assessment of technical characteristics of motor vehicles, including those
which have been reequipped, the specialty conclusions shall be presented to the Ministry of Transport
and Road Management.

(3) The tax shall be paid by the subject of taxation, with drawing up the payment document.

(4) The tax shall be calculated taking into account the motor vehicle technical characteristics, specified in
its registration certificate and indicated in the payment document

(5) The tax is paid for the motor vehicles owned by the subject of taxation at the date of appearance of
the tax payment obligation. The tax shall not be paid for the motor vehicles unused by the physical
persons for personal purposes, for the motor vehicles unused by the physical and juridical persons in the
entrepreneurial activity, including reject motor vehicles, as well as for those preliminarily unused, taken
out from circulation or those erased from the records kept by the authorities in charge of keeping records
of motor vehicles. If the tax for these motor vehicles was paid until the date of erasing from
records/drawing out from operation, the tax will not be refunded.

(6) In case of selling the motor vehicle for which the tax for the current fiscal period has already been
paid, the new owner shall not pay the tax, and the paid tax shall not be refunded to the former owner.

(7) For motor vehicles which, following the law or a legal document, are owned by a person other than
the owner (usufruct, usage, rent, leasing, power of attorney, pledge etc.), the tax shall be calculated and
paid by the owner.

(8) For mixed vehicles, the tax rate is calculated through summing the tax rate corresponding to the
motor vehicle meant for passenger transportation with the tax rate corresponding to the motor vehicle
meant for goods’ transportation, starting with the motor vehicle’s category and its technical
characteristics specified in the registration certificate.

(8¹) If the mixed motor vehicle cannot be qualified as micro-bus/bus as result of reequipping, the tax,
following the motor vehicle technical characteristics, shall be calculated in accordance with the quotas
established in point 2 and 6 from the enclosure no. 1 to the present title.

(9) For motor vehicles which, according to the legislation, are subjected to technical revision/ technical
testing twice a year, the subjects of taxation pay a tax once, as one payment and in full, at the date when
the motor vehicles are subjected to technical revision/technical testing for the first time.

 (10) The tax shall be paid regardless of the results of technical revision/technical testing. If the
utilization of the motor vehicle has been prohibited as a result of the performed technical
revision/technical testing, the tax shall not be refunded. In the event that the tax has been paid and the
motor vehicle has not passed the technical revision/technical testing because its didn’t meet the set
norms, at repeated submission of the motor vehicle to the technical revision/technical testing in the same
accounting fiscal period, the tax shall not be paid.

(11) The tax sum paid in excess is passed on the account of the tax for payment to the next fiscal period
or is refunded to the subject of taxation in the set manner.

Article 342 Book-keeping report on tax payment
(1) The book-keeping report on tax payment is submitted to the tax bodies at taxpayer’s headquarter /
domicile by the following subjects of taxation:
a) legal entities;
b) physical persons who carry out entrepreneurial activity.

(2) The book-keeping report on tax payment shall be submitted by the subjects mentioned in the
paragraph 1 of the present article, annually, until 31st of December of the accounting fiscal period.
Individual entrepreneur, peasant (farmer) household, of which annual average number of employees,
during the fiscal period, does not exceed 3 persons and which are not registered as VAT payers shall
submit, until 31 March of the year following the reporting fiscal year, an unified tax report.

(3) The bodies that carry out technical revision and enterprises which carry out technical testing of motor
vehicles are obliged to keep computerized records of the motor vehicles which were subjected to
technical revision/technical testing and to transmit to the Ministry of Informational Technologies the
information needed for amendment of the State Register of Transport (contour “G” – “Record keeping of
execution of the fiscal legislation”).

(4) Ministry of Informational Development provides access of the State Tax Service to the data of the
State Register of Transport in the manner set together with the State Central Tax Inspectorate at the
Ministry of Finance.

Article 343 Facilities
Owners of motor vehicles with manual drive are exempted from tax payment.

                                    Chapter III
                 TAX FOR USING THE ROADS OF THE REPUBLIC OF MOLDOVA BY THE
                 MOTOR VEHICLES UNREGISTERED IN THE REPUBLIC MOLDOVA

Article 344 Subjects of taxation
(1) Subjects of taxation are physical persons and legal entities owners of motor vehicles unregistered in
the Republic of Moldova, which enter or transit the territory of the Republic of Moldova.
(2) As subjects of taxation are not:
a) physical and legal persons residents who place motor vehicles under import customs regime;
b) owners of motor vehicles registered in other states, holding permission for international road transport
of type “Exempted from taxes’ payment”



Article 345 Object of taxation
Object of taxation is the motor vehicle unregistered in the Republic of Moldova which enter or transit the
territory of the Republic of Moldova
Article 346 Taxation rates
(1) The tax rates are established in euro, according to the enclosure no.2 to the present title. The tax shall
be paid in Moldovan lei or in freely convertible currency, at the exchange rate established by the
National bank of Moldova at the date of crossing the state frontier of the Republic of Moldova.

(2) For motor vehicles which carry dangerous goods, the established tax rate is doubled.

(3) If the motor trucks which transit the territory of the Republic of Moldova stay on the territory of the
Republic of Moldova for more than 24 hours, the subject of taxation shall pay, for each following 24
hours of stay, a tax in the amount of 24 euro. The tax is calculated for each 24 hours in excess, not for
each hour stayed over the term.

(4) The tax specified in the paragraph (3) of the present article shall not be paid for the motor vehicles
stopped on the territory of the Republic of Moldova for well-grounded reasons (driver’s disease,
unfavorable conditions for driving on the road, natural or man-caused calamities, road accidents). The
fairness of holding is confirmed, upon the case, by the extract from the medical record, by the certificate
issued by the head of the economic agent in charge to run the sector of road on which the stoppage took
place or in case of some road accidents, by the certificate issued by the competent body of road police.

Article 347 Manner of tax calculation and payment
(1) The tax shall be calculated for each object of taxation by the Customs Service and shall be paid at the
points of crossing the state frontier of the Republic of Moldova.

(2) For the motor vehicle unregistered in the Republic of Moldova which transits the territory of the
Republic of Moldova, shall be paid only the tax for transiting the territory of the country, not for the
entrance.

(3) The subjects of taxation pay the tax through a financial institution, in cash and/or through bank
transfer, in Moldovan lei or in freely convertible currency, at the exchange rate established by the
National Bank of Moldova at the date of crossing the state frontier. The cashed sums are transferred to
the state budget in the same day or in the immediately following day.

(4) The legal persons subjects of taxation, as well as owners of motor vehicles who perform regular
international trips can pay the tax in advance, through bank transfer. At the point of crossing the state
frontier, they will present the original of the payment document that confirms tax payment and will leave
there a copy of it.

(5) The State Enterprise “Moldovan Agency of International Auto Traffic” presents to the State Central
Tax Inspectorate at the Ministry of Finance, quarterly, until the last day of the accounting quarter the
information about the tax calculated and paid sums, in the form established by the State Central Tax
Inspectorate.

Article 348 Facilities
The provisions of the present chapter do not extend over motor vehicles unregistered in the state with
which the Republic of Moldova has concluded bi- and multilateral agreements with regard to auto
transport without payment of road taxes.
                                            Chapter III
               TAX FOR USING THE ROADS OF THE REPUBLIC OF MOLDOVA BY MOTOR
VEHICLES THE TOTAL WEIGHT, LOAD BEARING ON AXLE OR DIMENSIONS OF WHICH
                               EXCEED THE ADMISSIBLE LIMITS

Article 349 Subjects of taxation
Subjects of taxation are physical persons (citizens of the Republic of Moldova, foreign citizens, stateless
persons) and legal entities (residents and nonresidents) owners of motor vehicles the total weight, the
load bearing on axle or dimensions of which exceed the admissible limits.

Article 350 Object of taxation
As object of taxation are the motor vehicles registered in the Republic of Moldova, as well as those
unregistered in the Republic of Moldova, the total weight, the load bearing on axle or dimensions of
which exceed the admissible limits and which use the roads of the Republic of Moldova.

Article 351 Taxation rates
(1) Tax for the motor vehicles registered in the Republic of Moldova the total weight, the load bearing on
axle or the dimensions of which exceed the admissible limits, shall be paid according to the rates
established in the enclosure no.3 of the present title.

(2) The tax for the motor vehicles unregistered in the Republic of Moldova the total weight, the load
bearing on axle or the dimensions of which exceed the admissible limits, is paid according to the rates set
in the enclosure no.4 to the present title.

(3) If total weight, load bearing on axle or dimensions exceeds the admissible limits, the tax shall be the
sum of the calculated taxes for each index separately.

(4) The established tax rates are doubled for motor vehicles, the total weight, load bearing on axle or
dimensions of which exceed the admissible limits if these motor vehicles run without special permission
or if their total weight, load bearing on axle or dimensions do not coincide with those indicated in the
permission.

Article 352 Manner of tax calculation and payment, presentation of book-keeping reports
(1) The tax shall be calculated:
a) for motor vehicles registered in the Republic of Moldova – by the Ministry of Transport and Road
Management, according to the enclosure no.3 to the present title;
b) for motor vehicles unregistered in the Republic of Moldova – by the Customs Service, according to
the enclosure no.4 to the present title;

(2) The manner of calculation of the total weight, load bearing on axle or dimensions is set by the
Government.

(3)The subjects of taxation shall pay a tax in full until receipt of documents that allow road transportation
with motor vehicles the total weight, load bearing on axle or dimensions of which exceed the admissible
limits.

(4) In case of revealing, when leaving the country, motor vehicles the total weight, load bearing on axle
or dimensions of which exceed the admissible limits, which run without special permission, or in case of
revealing that the total weight, load bearing on axle and dimensions of these motor vehicles do not
coincide with those indicated in the permission, Customs Service shall calculate the tax according to the
art.351 paragraph (4) of the present code and shall not allow the crossing of the state frontier until
presentation of the payment document confirming tax payment.

(5) In case of revealing on country’s territory motor vehicles, the total weight, load bearing on axle or
dimensions of which exceed the admissible limits, which run without special permission, or in case of
revealing that the total weight, load bearing on axle and dimensions of these motor vehicles do not
coincide with those indicated in the permission, the body of the road police and/or empowered co-worker
of the Ministry of Transport and Road Management draws up a protocol of revealing absence of a special
permission or noncompliance of the total weight, load bearing on axle or dimensions indicated in the
permission with those indicated in the permission and calculates the tax according to the art.351
paragraph (4) of the present code.

(6) If the situation specified in the paragraph (5) of the present article is referred to a motor vehicle
unregistered in the Republic of Moldova, an exemplar of the protocol on revealing absence of the special
permission or noncompliance of the total weight, load bearing on axle or dimensions with those indicated
in the permission are handed to the subject of taxation, but the second exemplar is sent to the subdivision
of Customs Service from the point of crossing the state frontier, according to the itinerary set for the
respective motor vehicle.

(7) If the situation specified in the paragraph (5) of the present article is referred to a motor vehicle
registered in the Republic of Moldova, an exemplar of the protocol on revealing absence of the special
permission or noncompliance of the total weight, load bearing on axle or dimensions with those indicated
in the permission are handed to the subject of taxation, but the second exemplar is sent to the territorial
state tax inspectorate covering the subject of taxation.

(8) The tax shall be paid in Moldovan lei or in freely convertible currency, at the exchange rate
established by the National Bank of Moldova at the date of issuance of documents that allow traffic with
exceeding the admissible limits. In the case specified in the paragraph (4) of the present article, the tax
shall be calculated following the exchange rate established by the National Bank of Moldova at the date
of crossing the state frontier. In the case mentioned in the paragraph (5) of the present article, the tax
shall be calculated following the exchange rate established by the National Bank of Moldova at the date
of drawing up the protocol on revealing absence of special permission or noncompliance of the total
weight, load bearing on axle or dimensions with the data indicated in the special permission.

(9) The subjects of taxation shall pay the tax through a financial institution. The cashed sums are
transferred to the state budget in the same day or in the immediately following working day.

(10) The bodies mentioned in the paragraph (1) of the present article present to the State Central Tax
Inspectorate at the Ministry of Finance, quarterly, until the last day of the month immediately following
the accounting quarter, the book-keeping report on the calculated and paid sums of the tax, in the form
set by the State Central Tax Inspectorate.

(11) The subjects of taxation residents of the Republic of Moldova who carry out entrepreneurial activity
present to the territorial state tax inspectorate covering their headquarter, quarterly, until the last day of
the month immediately following the accounting quarter when the documents needed for traffic with
exceeding the admissible limits have been received, the book-keeping report on the tax, calculated in the
form set by the State Central Tax Inspectorate at the Ministry of Finance.


                               Chapter V
TAX FOR USING PROTECTION ZONES OF ROADS OUTSIDE THE PERIMETER OF
LOCALITIES FOR CARRYING OUT CONSTRUCTION AND INSTALLING WORKS

Article 353 Subjects of taxation
Subjects of taxation are physical persons and legal entities that request permission to carry out, in the
protection zone of the roads outside the perimeter of localities, underground and overland installing
works of the engineering constructions, construction works of the ways of access to roads, parking
places, buildings and facilities, except the objects rendering road services.

Article 354 Objects of taxation
As object of taxation are the projects of construction and installing works, underground and/or overland
installing works of the engineering constructions, of the ways of access to roads, parking places,
buildings and facilities.

Article 355 Taxation rates
The taxation rates are established according to the enclosure no.5 to the present title.

Article 356 Manner of tax calculation and payment
(1) The tax is calculated by the Ministry of Transport and Road Management, by multiplying the tax rate
with:
a) the number of presented projects, in case of objects of taxation from the point 1 and point 2 of the
enclosure no.5 to the present title;
b) each square meter of used area, in case of objects of taxation from the point 3 letter a), point 5 and
point 6 of the enclosure no.5 to the present title;
c) each linear meter of used area, in case of taxation objects from the point 3 letter b)-d) and point 4 of
the enclosure to the present title;

(2) The tax shall be paid through financial institutions, as unique payment:
a) at the date of submitting projects and at the date of inviting the specialist to the object, in case of
taxation objects from the point 1 and point 2 of the enclosure no.5 to the present title;
b) until receipt of the permission for carrying out works.

(3) Ministry of Transport and Road Management shall issue the needed documents for carrying out
works only at presentation of the copy of the payment document confirming tax payment.

(4) The sums of taxes paid for the objects of taxation specified in the point 1 and point 2 of the enclosure
no.5 to the present title shall not be refunded in case of refusal to issue the needed documents for
performing works.

(5) Ministry of Transport and Road Management presents to the State Central Tax Inspectorate at the
Ministry of Finance, quarterly, until the last day of the month immediately following the accounting
quarter, the information about the subjects of taxation and the calculated and paid tax sums.

(6) The subjects of taxation present to the territorial state tax inspectorate covering their headquarter,
quarterly, until the last day of the month immediately following the accounting quarter when the needed
documents have been received for carrying out works, the book-keeping report on tax payment, in the
form set by the State Central Tax Inspectorate at the Ministry of Finance.

                               Chapter VI
TAX FOR USING PROTECTION ZONE OF THE ROADS OUTSIDE THE PERIMETER OF
LOCALITIES FOR PLECEMENT EXTERNAL ADVERTISIING

Article 357 Subject of taxation
Subjects of taxation are physical persons and legal entities that request permission for placing external
advertising in the protection zone of the roads outside the perimeter of localities.

Article 358 Object of taxation
As object of taxation are the projects of placement in the protection zone of the roads outside the
perimeter of localities of the objects of external advertising, objects of external advertising placed in the
protection zone of the roads outside the perimeter of localities, including on the land property of the
subject of taxation: posters, panels, stands, installations and constructions (situated separately or on the
walls of the buildings’ roofs), three-dimensional and luminous boards, electronic and electromechanical
suspended boards, other advertising technical means.

Article 359 Taxation rates
The tax rates are established according to the enclosure no.6 to the present title.

Article 360 Fiscal period
Fiscal period is the calendar year.

Article 361 Manner of tax calculation and payment, of presentation of book-keeping report

(1) For the objects of external advertising placed in the protection zone of the roads outside the perimeter
of localities, the tax shall be calculated by multiplying the tax rate with:
a) the number of presented projects, in case of taxation objects from the point 1 and point 2 of the
enclosure no.6 to the present title;
b) each square meter of advertising area, in case of taxation objects from the point 3 of the enclosure no.6
to the present title;

(2) For tax calculation, both advertising surfaces of the object (recto and verso) are taken into account.

(3) The sums of the taxes paid for the subjects of taxation specified in the point 1 and point 2 of
enclosure no. 6 to the present title shall not be refunded in case of refusal to issue permission for placing
external advertising.

(4) The tax shall be paid until the carrying out of the actions specified in the point 1 and point 2 of the
enclosure no.6 to the present title and until issuance of the permission for placing the objects specified in
the point 3 of this enclosure.

(5) For the fiscal period when the permission for placing external advertising has been requested, the tax
is calculated by the Ministry of Transport and Road Management, which shall present to the State Central
Tax Inspectorate at the Ministry of Finance, quarterly, until the last day of the month immediately
following the accounting quarter, the information about the subjects of taxation and the calculated and
paid tax sums, in the form set by the State Central Fiscal Inspectorate. In this case, the subjects of
taxation present to the territorial state tax inspectorate covering their headquarter, until the last day of the
month immediately following the accounting quarter when the permission for placing the object has been
received, a book-keeping report on the calculated tax.

(6) For the next fiscal periods, the subject of taxation calculates the tax individually and pays it, through
financial institutions, as unique payment until the date of March 1st of the current fiscal period. In this
case, the subject of taxation presents:

a) until the date of March 31st of the current fiscal period, to the territorial state tax inspectorate covering
its headquarter (in case of branches/subdivisions – from the headquarter of the enterprise which created
them) a book-keeping report on the calculated tax;

b) from the date of tax payment, to the economic agent in charge of operating the road sector in the
protection zone of which the object of external advertising is placed, a copy of the payment document
that confirms tax payment.

(7) The economic agents in charge of operating the road sector in the protection zone of which the
objects of external advertising are placed, transmit until the date of March 31st of the current fiscal
period, to the territorial state tax inspectorate covering the headquarter of the subject of taxation, a book-
keeping report on each subject and object of taxation, as regards the calculated and paid tax sums, in the
manner set by the State Central Tax Inspectorate at the Ministry of Finance.

(8) If the land occupied by the object of external advertising is located partially in the protection zone of
the roads outside the perimeter of localities, the tax shall be calculated by the ratio between the area of
the land located in the protection zone of the roads and the total area of the land occupied by the object,
to which the corresponding tax rate is applied.

(9) If the object of external advertising has been placed or withdrawn during the fiscal period, the tax
shall be calculated in the day when the permission has been received or until the day when the object has
been withdrawn in the set manner, respectively.


                                Chapter VII
    TAX FOR USING THE PROTECTION ZONE OF THE ROADS OUTSIDE THE PERIMETER
        OF LOCALITIES FOR PLACING OBJECTS WHICH RENDER ROAD SERVICES

Article 362 Subjects of taxation
Subjects of taxation are physical persons and legal entities that request permission for placing the objects
which render road services in the protection zone of the roads outside the perimeter of localities.

Article 363 Object of taxation
As object of taxation are the projects of placing in the protection zone of the roads outside the perimeter
of localities and objects which render road services and objects which render road services located in the
protection zone of roads outside the perimeter of localities, including on land that is property of the
subject of taxation: fuel filling stations, technical maintenance stations, vulcanization places, booths,
retail trade outlets, public nutrition enterprises, incoming tourism structures with provision of
accommodation and meal.

Article 364 Manner of tax calculation and payment, of presentation of book-keeping reports

(1) For the objects rendering road services located in the protection zone of the roads outside the
perimeter of localities, the tax shall be calculated by:
a) multiplying the tax rate with the number of presented projects, in case of objects of taxation specified
in the point 1 and point 2 of the enclosure no.6 to the present title;
b) multiplying the tax rate with the number:
- of meters registering the delivered fuel, in case of the object of taxation specified in the point 4 letter a)
of the enclosure no.6 to the present title;
- posts rendering services, in case of the object of taxation specified in the point 4 letter b) of the
enclosure no.6 to the present title;
- vulcanization places;

c) multiplying the tax rate with the number of placed objects, in case of objects of taxation specified in
the point 4 letter d) and e) of the enclosure no.6 to the present title.

(2) The tax shall be paid until fulfillment of actions specified in the point 1 and point 2 of the enclosure
no.6 to the present title and until issuance of the permission for placing the objects specified in the point
4 of this enclosure.

(3) For the fiscal period for which the permission for placing the object which render road services has
been requested, the tax shall be calculated by the Ministry of Transport and Road Management, which
has to present to the State Central Tax Inspectorate at the Ministry of Finance, quarterly, until the last day
of the month immediately following the accounting quarter, the information regarding the subjects of
taxation and the calculated and paid tax sums, in the form established by the State Central Tax
Inspectorate. In this case, the subjects of taxation present to the territorial state tax inspectorate covering
their headquarter, until the last day of the month immediately following the accounting quarter when they
received the permission for placing the object, a book-keeping report on the calculated tax.

(4) For the next fiscal periods, the subject of taxation shall calculate the tax individually and shall pay it,
through financial institutions, as unique payment, until the date of March 1st of the current fiscal period.
In this case, the subject of taxation presents:
a) until the date of May 31st of the current fiscal period, to the territorial state fiscal inspectorate (in case
of branches/subdivisions – from the headquarter of the enterprise which established them) a book-
keeping report on the calculated tax;
b) at the date of tax payment, to the economic agent in charge to operate the road sector in the road
protection zone of which the object which renders road services is placed, a copy of the payment
document confirming tax payment.

(5) The economic agents in charge to operate the road sectors in the protection zone of which the objects
which render road services are placed, transmit, until the date of May 31st of the current fiscal period, to
the territorial state tax inspectorate covering the subject of taxation, a book-keeping report regarding each
subject of taxation, on the calculated and paid tax sums, in the form set by the State Central Tax
Inspectorate at the Ministry of Finance.

(6) If the land occupied by the objects rendering road services (including entrances and exits, access
ways and parking places) is located partially in the protection zone of roads outside the perimeter of
localities, the tax shall be calculated starting with the ratio between the area of the land located in the
protection zone of the roads and the total area of the land occupied by the object, to which the
corresponding tax rate is applied.

(7) If the object rendering road services has started functioning or has been liquidated during the fiscal
period, the tax shall be calculated, in the set manner, from the day when the object has started functioning
or until the day when the object stopped functioning.

(8) The taxes paid for the objects of taxation specified in the point 1 and point 2 of the enclosure no.6 to
the present title shall not be refunded in case of refusal to issue the permission for object placement.


CHAIRMAN                                                                    Marian Lupu
OF THE PARLIAMENT

Chisinau, November 2nd, 2006
No.316-XVI

                                                                                                     Enclosure no.1

             Tax for using the roads by the motor vehicles registered in the Republic of Moldova
    No.                                         Subject of Taxation                                             Tax,
    crt.                                                                                                         lei
     1                                                    2                                                       3
     1. Motorcycles                                                                                                 36
     2. Automobiles, motor vehicles for special usages on chassis of automobile or microbus, with cylindrical
         capacity of the motor:
         a) up to 1500 cm3 inclusive                                                                               54
         b) from 1501 to 2000 cm3 inclusive                                                                         108
         c) from 2001 to 2500 cm3 inclusive                                                                         360
         d) from 2501 to 3000 cm3 inclusive                                                                         900
         e) from 3001 to 3500 cm3 inclusive                                                                        1080
         f) from 3501 to 4000 cm3 inclusive                                                                        1260
         g) from 4001 to 4500 cm3 inclusive                                                                        1440
         h) from 4501 to 5000 cm3 inclusive                                                                        1620
         i) from 5001 to 5500 cm3 inclusive                                                                        1800
         j) from 5501 to 6000 cm3 inclusive                                                                        1980
         k) over 6000 cm3                                                                                          2160
  3.     Trailers with raising capacity written in the certificate of registration:
         a) up to 0,75 t inclusive                                                                                   36
         b) from 0,75 to 3,5 t inclusive                                                                            216
         c) from 3,5 to 10 t inclusive                                                                              360
         d) over 10 t                                                                                               432
  4.     Semi-trailers with raising capacity written in the certificate of registration:
         a) up to 15 t inclusive                                                                                    432
         b) from 15 to 20 t inclusive                                                                               648
         c) from 20 to 25 t inclusive                                                                               828
         d) from 25 to 30 t inclusive                                                                              1008
         e) from 30 to 35 t inclusive                                                                              1224
         f) over 35 t                                                                                              1440
  5.     Tow trucks, tractors                                                                                       360
  6.     Auto trucks, motor vehicles for special usages on chassis of motor truck, any other motor vehicles with
         auto-propulsion, with the total weight written in the certificate of vehicle registration :
         a) up to 1,6 t inclusive                                                                                   144
         b) from 1,6 to 5 t inclusive                                                                               288
         c) from 5 to 10 t inclusive                                                                                360
         d) over 10 t                                                                                               900
  7.     Micro buses and buses with the capacity:*
         a) of 9 seats                                                                                              900
         b) from 10 to 16 seats inclusive                                                                          1080
         c) from 17 to 24 seats inclusive                                                                          1260
         d) from 25 to 40 seats inclusive                                                                          1440
         e) over 40 seats                                                                                          1620

* For micro-buses and buses, the number of seats is calculated without driver’s seat.




                                                                                                      Enclosure no.2


       Tax for using the roads by the motor vehicles unregistered in the Republic of Moldova
 No.                               Object of taxation                                          Tax, euro
 crt.                                                                            for entrance in the for leaving the
                                                                                       country           country
  1.     Micro buses and buses with the capacity:*
         a) of 9 seats                                                                    25                  40
         b) from 10 to 16 seats inclusive                                                 40                  50
         c) from 17 to 24 seats inclusive                                                 45                  60
         d) from 25 to 40 seats inclusive                                                 70                  80
       e) over 40 seats                                                                 85                   100
  2.   Trailers to micro buses                                                          20                    30
  3.   Trailers to buses                                                                40                    50
  4.   Trucks with or without trailers (the load bearing on axle of which
       exceeds the admissible limits), with total weight:
       a) up to 3,6 t inclusive                                                         25                   40
       b) from 3,6 to 10 t inclusive                                                    40                   50
       c) from 10 to 40 t inclusive                                                     75                   85

       * For micro-buses and buses, the number of seats is calculated without driver’s seat.



                                                                                                      Enclosure no.3


   Tax for using the roads by the motor vehicles registered in the Republic of Moldova the
  total weight, the load bearing on axle or dimensions of which exceed the admissible limits

Nr.                              Object of taxation                                               Tax, lei
crt.
 1. Issuance of the preliminary notice and of the special permission on request                     36,0
 2. Exceeding of the admissible load bearing on axle:
     a) ordinary – 10,1–12 t                                                      0,9 for each ton of exceeding x km
        double – 16,1–18 t                                                        0,9 for each ton of exceeding x km
        triple– 22,1–24 t                                                         0,9 for each ton of exceeding x km
     b) ordinary – over 12 t                                                      1,8 for each ton of exceeding x km
        double –over 18 t                                                         1,8 for each ton of exceeding x km
        triple – over 24 t                                                        1,8 for each ton of exceeding x km
 3. Exceeding of the admissible total weight of motor vehicles with freight       2,7 for each ton of exceeding x km
     (without exceeding the load bearing on axle)
 4. Exceeding of the admissible dimensions, respecting the conditions for the
     load weight:
     a) width and height up to 50 cm or length up to 100 cm                       3,6 for each kilometre
     b) width and height with 50-100 cm or length with 100-200 cm                 7,2 for each kilometre
     c) width and height with 101-150 cm or length with 201-350 cm                10,8 for each kilometre
     d) width and height with 151-200 cm or length with 351-600 cm                14,4 for each kilometre
     e) width and height with 201-250 cm or length with 601-900 cm                18,0 for each kilometre
     f) width and height with 251-300 cm or length with 901-1200 cm               21,6 for each kilometre
     g) width and height with over 301 cm or length with over 1201 cm             27,0 for each kilometre
 5. Repeated weighing of the motor vehicle or repeated weighing of                18,0 for an operation
     dimensions after freight move


                                                                                                       Enclosure no.4


 Tax for using the roads by the motor vehicles unregistered in the Republic of Moldova, the
       total weight, the load bearing or dimensions of which exceed admissible limits

Nr.                          Object of taxation                                                Tax, euro
crt.                                                                           for
                                                                            entrance    for each kilometer ran over
                                                                             in the
                                                                            country
1                                     2                                      3                     4
1. Motor vehicles, the total weight, load bearing on axle and
   dimensions of which exceed the admissible limits:
   - for issuance of the preliminary notice and of the special permission    45
   - for exceeding the admissible total weight                               15     0,25 for each ton of exceeding
   - for exceeding the admissible load bearing on axle:
   a) ordinary 10,1–12 t                                                     15     0,125 for each ton of exceeding
      double 16,1–18 t                                                       15     0,125 for each ton of exceeding
      triple22,1–24 t                                                        15     0,125 for each ton of exceeding
   b) ordinary over 12 t                                                     15     0,15 for each ton of exceeding
      double over 18 t                                                       15     0,15 for each ton of exceeding
      triple over 24 t                                                       15     0,15 for each ton of exceeding
   - for exceeding the admissible dimensions:
   a) width and height                                                       15     0,005 for each centimeter of
                                                                                    exceeding
   b) length                                                                 15     0,3 for each meter of exceeding
2. Repeated weighing or repeated measuring of the motor vehicle              15
3. Escort, depending on the case, with covering automobile                          0,3



                                                                                                   Enclosure no.5


               Tax for using the protection zone of the roads outside the perimeter
                of localities for carrying out construction and assembling works

Nr.                                       Object of taxation                                     Measure     Tax,
crt.                                                                                               unit       lei
 1. Examination and drawing up of documents, coordination of decisions on projects and           1 project      90
     issuance of technical specifications
 2. Invitation of the specialist to the object                                                   1 project     108
 3. Issuance of permissions for carrying out installing underground works of the engineering
     constructions:
     a) by open method (through trenches) over the road                                            1 m2        126
     b) by closed method (perforation, boring) under road                                          1m           36
     c) along the roads                                                                            1m           18
     d) under pavement                                                                             1m           27
 4.   Issuance of permissions for carrying out installing over-land works of the engineering
     constructions:
     a) on pillars along the roads                                                                 1m            18
     b) along bridges                                                                              1m            72
     c) suspending above roads                                                                     1m            54
 5. Issuance of permissions for construction of the ways of access to roads, parking places        1 m2           9
     and additional bands
 6. Issuance of permissions for construction of buildings and facilities (except objects which     1 m2          54
     render road services )
 7. Carrying out works without permission of the road administration bodies (without taking      1 object     1800
     into consideration the payment for issuance of the permission)
                                                                                                        Enclosure no.6


Tax for using the protection zone of the roads outside the perimeter of localities for placing
external advertising and tax for using the protection zone of the roads outside the perimeter
               of localities for placing the objects which render road services

 Nr.                            Object of taxation                                     Measure Unit                Tax,
 crt.                                                                                                               lei
  1.    Examination and drawing up of documents, coordination of            1project                                    90
        decisions on projects and issuance of technical specifications
  2.    Invitation of the specialist to the object                          1 project                                108
  3.    Objects of external advertising located in the protection zone of   1 m2 of advertising area                 108
        the roads outside the perimeter of localities
  4.    Objects rendering road services in the protection zone of the
        roads outside the perimeter of localities:
        a) fuel filling stations                                            1 meter of registering the delivered     900
                                                                            fuel
        b) technical maintenance stations                                   1 post which render services*            900
        c) vulcanization places                                             1 place                                  360
        d) retail trade outlets, public nutrition enterprises, incoming     Up to 100 m2                             900
        tourism structures with accommodation and meal                      100 m2 and more                         1800
        e) booths (commercial outlets) located outside the perimeter of     1 booth (outlet)                         180
        localities

* Number of posts is determined starting with the number of motor vehicles that can be serviced simultaneously.

				
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