- Overview: Moldova
- Work permit for hiring expats via PEO
- Global HR Compliance
- Global PEO and payroll
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Moldova
Do you have Ukrainian workers who are planning to flee to Moldova to escape the Russian conflict? Or have your employees already left Ukraine and arrived in Moldova?
Acumen International can help companies like yours, including IT, to compliantly employ your Ukrainian talent in Moldova within days. Acumen’s global PEO and Payroll solution helps you to legally relocate your Ukrainian personnel to Moldova so you can enjoy uninterrupted workflow with employees you know and trust. Our solution enables us to arrange for global payroll, and to open bank accounts for your employees. We can also provide your talent with laptops, mobile phones, and other tools they need to perform their jobs.
Getting your business up-and-running in Moldova can be challenging, especially if you do not speak the native language. Establishing your own business entity in Moldova is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Moldova, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Moldova, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Moldova
Navigating the Moldovian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Moldovian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Moldova without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Moldova. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Moldova
Employment related taxes
Personal Income tax (PIT). Moldovan residents (both Moldovan citizens and foreigners) are subject to taxation for their income received during the fiscal period from any sources within the Republic of Moldova, as well as from sources outside the country for their work activity effectively performed in the Republic of Moldova (except income that is expressly tax-exempt under the Moldovan law).
Moldovan citizens receiving investment and financial income from sources outside Moldova are also subject to tax on this income in Moldova.
At the same time, individuals qualifying as non-residents for Moldovan personal income tax (PIT) purposes are subject to Moldovan tax for the income derived from Moldovan sources (e.g., income received from property located in Moldova, remuneration for activity performed in Moldova, interest, and royalties received from Moldovan legal entities).
Nontaxable payments. For inbound expatriates, there are no types of exempt income. For outbound expatriates, the following benefits are considered nontaxable if borne by the employer: transportation costs, per-diem visa fees, and accommodation, if granted in accordance with the law and if supporting documents are available. These expenses are considered nontaxable only if they are incurred for business purposes.
Social security contributions. Contributions to the Social Security Budget are mandatory for Moldovan citizens; however, unlike taxes, they have an exact destination and are available for refund to the taxpayer in the form of pensions, allowances, etc.
Payroll Cycle in Moldova
Wages are paid on a regular basis directly to the employee or his authorized representative on the basis of a certified warrant, at the employee’s workplace, on the working days established in the collective or individual labour contract, but:
- not less than two times a month — for workers, who get hourly or piecework payment;
- not less than once a month — for workers, who are paid on the basis of monthly or official salaries.
The employer is obliged to notify the employee about the size of the wage payments, the form of payment, the procedure of calculation of wages, periodicity and place of payment, other conditions of wages payment, and their modifications.
At wages payment, the employer is obliged to inform in writing each employee about the components of the wages due to him for the corresponding period, the size and the bases of deduction made, the total sum due to him, and also to introduce the corresponding records in accounting registers and annually — in the work-record cards of employees.
Payment of wages for occasional work, continuing for more than two weeks, is made immediately upon work termination.
In case of death of the employee, wages and other payments due to him are paid in full size to the spouse, children, or parents of the dead person, and in case of their absence — to other successors according to the current legislation.
Non-payroll taxes in Moldova
The standard VAT rate in Moldova generally applied to local supplies of goods and services, as well as to import of goods and services through a reverse-charge mechanism.
A number of supplies are VAT-exempt with deduction right, including international transportation and exports of goods or services. Certain supplies are VAT-exempt without deduction right.
Input VAT incurred on acquisitions of goods and/or services may be deducted, provided it is incurred by a VAT-registered payer to perform VATable supplies within its business activity.
If input VAT relates to acquisitions destined to perform mixed supplies (i.e., both VATable and VAT-exempt ones), the input VAT deduction right is allowed on a pro-rata basis./p>
VAT refunds. Should a company register a deductible input VAT exceeding its output VAT, this balance can be partially refunded only if the company carries out a specific range of business activities (e.g. export supplies, international transportation services, production of bakery and dairy products, leasing activity). Otherwise, such VAT amount may be carried forward to the following months, offset against the company’s future output VAT liabilities.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Moldova
Compensating your local and expat workforce in Moldova and closely adhering to Moldovian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Moldovian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Moldova by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Moldovian laws. To get the latest updates on taxation in Moldova and in 190 countries worldwide, contact Acumen’s team of global employment experts.