Moldova proposes extending its 0% tax mechanism through 2029

What the 0% mechanism means

It defers corporate income tax payment, subject to eligibility. The 2027–2029 draft provides for payment when dividends are distributed or profits are used to cover losses from previous years.

An opportunity for foreign investors

A permanent establishment (PE) is part of the same legal entity as the foreign company. Transfers to that company are, in principle, not dividends. This suggests a potential tax opportunity requiring individual assessment: neither the PE’s eligibility nor the tax treatment of transfers can be assumed.

Legislative status and conditions

The sources consulted on 21 October 2026 do not confirm final adoption and publication of the law. The Official Gazette of 16 October published the Government’s opinion on amendments, not the law. The extension is therefore presented here as a proposal.

Application depends on the final legislation, eligibility and documentation of profits and transfers. VAT, payroll obligations and taxation in the foreign company’s country require separate analysis.

Plain Plan can help you compare a permanent establishment with a Moldovan LLC and choose a structure suited to your operations.