The introduction of a progressive taxation method will lead to a distortion in the amount of income, as well as complicate the recruitment of specialists with international qualifications.
Such an opinion was expressed by the American Chamber of Commerce in Moldova (Amcham) in its next commentary on tax and customs policy measures for 2023. Amcham believes that the introduction of a progressive taxation system will contribute to the distortion of income - there will be a tendency to bring incomes to an acceptable level so as not to pay income tax at a higher rate. Amcham draws attention to the fact that the explanatory note to the project did not justify the choice of the threshold of 1 million lei. It is also noted that among individuals with high salary incomes there are foreign citizens and Moldovan citizens from the diaspora. “With the introduction of a progressive taxation method, hiring specialists with international qualifications and work experience will become more problematic for large businesses, and Moldova will become less attractive as a place of work,” Amcham believes. Recall, according to the draft tax policy for 2023, for individuals, individual entrepreneurs and persons who are engaged in professional activities in the field of justice and healthcare, the income tax rate will be 12% if the annual amount of income does not exceed 1 million lei, and 18% - if revenues exceed 1 million lei. In 2021, according to the State Tax Service, 4,007 people in Moldova declared annual incomes of over 1 million lei. // 16.12.2022 — InfoMarket
