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Investing companies to enjoy some VAT privileges

16 july 2010, 16:43 print out copy link The link has been copied to the Clipboard

Companies, obtaining goods and/or services on lease terms for the purpose of investing them into their production development, shall be exempted from the VAT on these goods and services.  on in lease for investments in economy will grant exceptions from VAT, as per the amendments introduced into the Customs and Tax Codes by the Parliament in order to encourage the development of small and medium businesses.   

It is believed that with these changes, investors will have no more barriers to investing in their production, and will feel free to lease up-to-date equipment and techniques.

Presently, only the enterprises purchasing tangible assets for authorized capital stock are exempted from the VAT, whereas other companies pay a 20% VAT.  

Amendment author MP Deputy Valeriu Guma said that in 2009, the volume of direct foreign investments in Moldova slumped 9-fold, and the investment into capital stock shrank by 20% in the first three months of 2010.

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