“Amendments to the Tax Code: Compensation of taxes and fees for autonomous entities”
Members of the Moldovan Parliament adopted in the first reading a draft law that provides for amendments to the Tax Code. According to the proposed mechanism, economic entities in autonomous entities will receive reimbursement of taxes and fees from the budget of the autonomous territorial entity within the limits of its revenues.
The presented legislative initiative is aimed at ensuring fiscal fairness between different localities of the country. The analysis showed that the amounts of VAT refunded from the state budget are constantly increasing, and over the last five years, more than 640 million lei have already been refunded in favor of ATU Gagauzia.
According to the proposed amendments, the amounts that are not subject to refund will be compensated from the state budget through special purpose transfers, according to the procedure established by the legislation.
The innovations will enter into force from the date of publication of the law in the Official Monitor of the Republic of Moldova. These steps are aimed at improving the taxation system and ensuring a more equitable distribution of budgetary funds between different regions of the country.
