Employer Tax Contributions

Tax Type	Rate	Base
Social Security Contribution (SSC)	24%	Employee's Gross Salary
Mandatory Health Insurance (MHI)	4.5%	Employee's Gross Salary
Personal Income Tax (PIT) Withholding	12%	Employee's Gross Salary (after deductions)

Filing & Compliance

• Monthly Declaration (Form IPC21): Due by the 25th day of the month following the reporting month for withheld income tax, social insurance, and mandatory health insurance contributions.
• Annual Personal Income Tax Declaration: Due by April 30th of the year following the reporting year.
• Quarterly Social and Medical Contributions Reports: Due by the 25th of the month following the end of the quarter.

In Moldova, both employers and employees contribute to the social security and healthcare systems through deductions from employee salaries. These contributions, along with income tax, form the core of employee tax deductions in the country.

Employee Deductions

• Income Tax: A progressive system applies where a 7% rate is levied on income up to 26,700 lei, and 18% on income exceeding this threshold. Annual personal allowances (29,700 lei), special category allowances (34,620 lei), dependent allowances (9,900 lei), and allowances for disabled dependents (21,780 lei) can reduce the taxable income. Allowances for a spouse in special categories (21,780 lei) also exist.
• Social Security: Employees contribute 6% of their gross income to the pension fund. As of 2025, the fixed annual social security contributions amount to 20,518 lei.
• Health Insurance: Employee contributions stand at 3.5% of their gross salary, while a 9% mandatory health insurance contribution is also applicable, totaling 12.5% for health-related contributions.
• Other Deductions: Additional deductions are available for education expenses (up to the average monthly salary), mortgage interest on first homes (excluding 'Prima Casa' program loans, capped at the average monthly salary), and certain insurance premiums (health, fire, and natural disaster, up to the average monthly salary).

Employer Contributions

• Social Security: Employers contribute 23% of the employee's gross income. Rates vary for specific sectors like agriculture (18%, with 6% covered by the state) and for employees working in special conditions (32%). Employers are responsible for remitting these contributions by the 25th of the following month.
• Health Insurance: Employers also contribute 3.5% of the employee's gross salary towards health insurance.
• Reporting and Deadlines: Employers must submit payroll tax returns monthly and remit social security contributions by the 25th of the following month.

General Tax Information for Moldova

Moldova levies taxes at both national and local levels. National taxes include income tax, VAT, excise taxes, private tax, customs duties, and road taxes. Local taxes cover areas like property, natural resources, territory development, advertising, and various other services and activities. As of January 1, 2025, several key tax amendments came into effect, impacting income tax, deductions, and exemptions. These changes aim to adjust for inflation, modernize regulations, and incentivize specific areas such as renewable energy and stock option plans. Changes for individuals include increased tax exemptions, higher debt deduction limits, and an expanded range of non-taxable income. Information regarding tax rates, deductions, and allowances is current as of February 5, 2025, and is subject to change. Consulting official government sources or tax professionals is recommended for the most up-to-date information.