Lately, the notion of "freelancer" has become more and more known in the Republic of Moldova. Young people, being the majority who provide services, will pay more attention to how to obtain income and declare it. According to the Tax Code of the Republic of Moldova no. 1163 of 24.04.1997 persons subjects to the taxation with income tax are natural persons resident in the Moldova who do not carry out entrepreneurial activity and during the tax period they obtain taxable income from any sources located in the Republic of Moldova and from any sources outside the country for their activity in the Republic of Moldova. It is worth mentioning that the tax period is the calendar year.
Let us proceed to the ways of obtaining the income and the related tax rates. According to Tax Code Individuals are subjects to 12% of the taxable annual income. Taxable income includes payments for work performed and services (including salaries), facilities provided by the employer, fees, commissions, premiums and other similar remuneration. At the end of the tax period, the individual is required to submit the natural person's statement of income tax. If you are thinking of setting up a LLC then you have to know that you are going to pay 4% of your operating income (services). After taxation, non-distributed profit will be subject to an additional tax of 6% to be routed as dividends to the founders. Once the decision to open a firm is made, the enterprise's manager must provide accounting services to the entity either by hiring an accountant or by contracting an accounting firm in the Republic of Moldova. At the same time, we note that the carrying out of the entrepreneurial activity without registration at the Public Services Department of Registration and Licensing of the Law Units or at another public authority competent according to the law or with a registration document declared invalid shall be sanctioned with a fine of 30 to 90 conventional units.
For more details about how much you need to open a business and book prices, go here.