The size of personal exemptions has increased, but not to the extent required by trade unions

After the Parliament passed in mid-December the Law no. 288 on the amendment and completion of some legislative acts, the Tax Code passed several amendments. Many of these also cover the income tax compartment and the personal exemptions of individuals.

According to Sergiu Sainciuc, vice-president of the CNSM, the amount of the annual taxable income for individuals, based on which the tax rates are set, has been modified. Thus, this year’s tax rate of 7 percent will be applied in relation to the total annual income of up to 33,000 lei, compared to 31140 lei in 2017, and the persons who will register during the current year total revenues which exceeds 33,000 lei, will pay a tax in the amount of 18 per cent.

Also, Sergiu Sainciuc informed us that the amount of annual personal exemption was increased from 10620 lei, last year, to 11280 lei. Unfortunately, not at the level demanded by the National Trade Union Confederation of Moldova, which demands that the amount of personal exemption to be equal to the minimum subsistence level.

Vice-president of CNSM also stated that the major annual value of the personal exemption amounts to 16800 lei and will benefit those who got ill and suffered from the actinic disease caused by the consequences of the C.A.E. Chernobyl; people with disabilities and it has been established that they are causal to the C.A.E. Chernobyl; the parent or spouse of a fallen or missing participant in the fight for the defense of the territorial integrity and independence of the Republic of Moldova, as well as the fighting in the Republic of Afghanistan; persons with disabilities as a result of their participation in fighting for the protection of the territorial integrity and independence of the Republic of Moldova, as well as in the fighting in the Republic of Afghanistan; people with disabilities from the war, people with disabilities due to a congenital or childhood disorder, people with severe and accentuated disabilities; retired victims of political repression, subsequently rehabilitated.

He added that the natural person in marriage can be entitled to an additional annual exemption of 11280 lei, if the other spouse is not employed, is not entitled to a personal exemption.

Sergiu Sainciuc also spoke of a slight increase in the exemptions for the caretakers: children, parents, grandparents, etc. These increased from 2340 lei annually in 2017 to 2520 lei for each person with the exception of persons with disabilities due to a congenital or childhood illness, who benefit from an annual exemption of 11280 lei.

Evolution of the amount of the annual taxable income of individuals, annual personal exemptions, major personal and for maintained persons between 2015 and 2018

Department of mass media and international relations of CNSM