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Tax reform in Moldova from 2027: what will change for entrepreneurs, freelancers, and companies

Starting in 2027, entrepreneurs in Moldova may face some of the most significant changes to tax regimes seen in recent years. Registration under certain business structures will be closed, tax rates and taxation rules will change for others, and companies may be able to pay profit tax only when profits are distributed.

The Ministry of Finance of the Republic of Moldova has published the draft tax policy for 2027 and submitted it for public consultation. The document provides for a large-scale reorganization of the existing tax regimes: instead of more than ten regimes, the government proposes retaining three main taxation frameworks while revising the conditions applicable to freelancers, individual entrepreneurs, traders, and legal entities.

It is important to understand that, at the time of writing, this is a draft law rather than a finalized law. Therefore, some provisions may still be amended. Nevertheless, entrepreneurs should already be aware of the proposed changes and understand how they may affect their businesses.

Source: Official website of the Government of the Republic of Moldova — gov.md, June 11, 2026; Ministry of Finance website and related documents — mf.gov.md.

Why the Ministry of Finance decided to simplify the system

Today, Moldova has more than ten tax regimes with different tax rates, tax bases, and reporting requirements. Each regime was originally created for a specific category of entrepreneurs, but over time the system has become overly complex and fragmented.

As a result, income that is essentially the same can be taxed differently simply because of the registration format or the tax regime chosen. For businesses, this creates planning difficulties, while for the state it creates additional administrative burdens and risks of unequal taxation.

According to the Ministry of Finance, the current system generates three main problems:

  • excessive administrative burden;
  • tax inequality among entrepreneurs;
  • low predictability of tax policy.

The reform is intended to reduce the number of regimes, make the rules easier to understand, and create a more transparent taxation system.

For entrepreneurs, this means that choosing a business structure will become an even more important strategic decision. The issue will not be limited to the tax rate itself, but will also involve how the tax base is calculated, which expenses can be deducted, and which regime is best suited to a particular business model.

Source: Explanatory note to the draft law published on the Ministry of Finance website (Final Notă Politica 10.06.2026.pdf).

The three regimes that will remain

Starting in 2027, it is proposed to retain three main taxation regimes:

  • the basic or general regime — for most legal entities and self-employed individuals;
  • independent entrepreneurship — a regime for freelancers introduced on January 1, 2026, by Law No. 228/2025;
  • the employment income taxation regime — for salaried employees.

Preferential regimes that benefit from state guarantees, including those available to residents of free economic zones and Moldova IT Park, will continue to operate until the expiration of the guarantees previously granted.

In practice, the state aims to reduce the number of special regimes and make the system easier to understand for new entrepreneurs. However, this does not mean that all existing business structures will disappear immediately. Many current entrepreneurs will be able to continue operating, albeit under updated tax rules.

What is being closed: which regimes will stop accepting new participants

Beginning on January 1, 2027, new registrations will no longer be possible under the following regimes:

  • liberal professionals in the fields of justice and healthcare;
  • individual enterprises, including peasant and farming households;
  • independent entrepreneurs engaged in trade.

An important point: this does not mean the forced closure of already registered entrepreneurs.

Those who obtain the relevant status before December 31, 2026, will be allowed to continue operating. However, they will be subject to new rules for determining the tax base and applying tax rates.

Entrepreneurs registering after 2026 will have to choose one of the remaining regimes, primarily the general regime, an LLC (SRL), or the independent entrepreneur regime.

What this means for future entrepreneurs

If an entrepreneur plans to establish an individual enterprise, a farming household, or register as a liberal professional, this must be done before the end of 2026.

After the reform comes into force, these regimes will be closed to new registrations. Therefore, decisions regarding business structure should be made in advance, taking into account future tax burdens, projected turnover, expenses, staffing needs, and long-term business objectives.

For new entrepreneurs, the main alternatives will be:

  • the independent entrepreneur regime — if the activity is carried out individually and does not require a complex structure;
  • an LLC (SRL) — if the business involves employees, partners, investment, growth, or a more sophisticated operating model.

Freelancers: more opportunities and new tax rates

The independent entrepreneurship regime is becoming one of the central elements of the reform. It was introduced on January 1, 2026, by Law No. 228/2025 and allowed individuals to work legally on their own without maintaining full accounting records.

Currently, freelancers may operate only within a defined list of permitted activities. The existing regime provides for a single tax of 15% on annual income up to MDL 1.2 million and a 35% rate on income exceeding that threshold.

Starting in 2027, it is proposed to expand the scope of this regime by:

  • eliminating sector-specific restrictions;
  • allowing independent entrepreneurs to engage in any type of economic activity;
  • reducing the annual income threshold for the 15% rate from MDL 1.2 million to MDL 1 million;
  • reducing the tax rate on income above the threshold from 35% to 30%.

As a result, a freelancer earning up to MDL 1 million annually would pay 15% tax on income. If the threshold is exceeded, the 30% rate would apply only to the amount exceeding the limit.

For most self-employed professionals, the independent entrepreneur regime may become the primary alternative to an individual enterprise for new registrations after 2026. This is especially relevant for consultants, accountants, marketers, designers, programmers, and other service providers who do not need to establish a full-fledged company.

Restrictions for companies working with freelancers

At the same time that the freelancer regime is being liberalized, the government proposes introducing restrictions for legal entities that actively engage independent entrepreneurs.

According to the draft law, companies will be allowed to deduct expenses related to freelancer services for tax purposes only up to 3% of their annual payroll fund.

Amounts exceeding this limit will be treated as non-deductible expenses and will be subject to an additional 15% tax. Corresponding amendments are proposed for Article 24 of the Tax Code.

This measure is intended to counter the practice of companies converting employees into freelancers in order to reduce tax liabilities and avoid formal employment relationships.

For businesses, this is an important signal: if a company regularly works with external specialists, it should assess in advance the proportion of such expenses relative to its payroll fund. Exceeding the limit may result in additional tax liabilities and affect the company’s financial model.

Individual enterprises and liberal professionals: a new tax scale

For existing individual enterprises, peasant and farming households, and liberal professionals in the fields of justice and healthcare, a new taxation scale is proposed:
Annual income
Tax rate
Up to MDL 1 million
7%
Above MDL 1 million
15%
At first glance, the 7% rate appears more attractive than the current 12% rate. However, it is important to consider not only the rate itself but also the tax base.

According to the draft, the taxable base will consist of gross income for the tax period, taking into account only those exemptions and deductions explicitly provided by tax legislation. This means that the final tax burden will depend on the expense structure of each specific business.

For entrepreneurs with relatively low expenses, the new model may prove beneficial. However, for those whose revenue is significantly consumed by purchases, rent, materials, logistics, or other operating costs, the impact should be calculated individually.

Important: starting January 1, 2027, new registrations of individual enterprises and farming households under the current regime will be closed. Only persons registered before December 31, 2026, will be able to retain their status.
Not sure how these changes will affect your business? We can help assess your future tax burden, compare available taxation regimes, and prepare your company for the new rules in advance.

Independent traders: the rate is changing

Separate changes apply to independent entrepreneurs engaged in trade. This regime was introduced in Moldova on July 1, 2023, when some traders moved from the entrepreneurial patent system to a simplified tax of 1% of turnover.

According to the draft tax policy for 2027, entrepreneurs registered with the State Tax Service before July 1, 2026, will be allowed to retain the preferential regime, but its conditions will change:

  • the tax rate will increase from 1% to 3% of income;
  • the minimum payment will be linked to the national minimum wage;
  • registration of new entrepreneurs under this regime will not be available from 2027 onward.

For small retail businesses, this may be a significant change. Increasing the rate from 1% to 3% could affect profitability, particularly for businesses with low turnover, seasonal sales, or high product acquisition costs.

Entrepreneurial patent: new renewal requirements

The amendments will also affect the Law on Entrepreneurial Patents No. 93/1998.

Starting in 2027, a patent will be issued or renewed only if the applicant has actually conducted business activities under the patent for at least six months during the previous twelve months.

Through this measure, the government intends to limit the use of patents by individuals who do not actually conduct business activities but retain patent status.

For entrepreneurs, this means that patents will become more difficult to use as a formal or backup instrument. If business activity is irregular, it is advisable to verify in advance whether the new renewal requirement will be met.

A new taxation model for LLCs and other legal entities

One of the key innovations for legal entities is the introduction of a taxation model similar to the so-called “Estonian system.”

The essence of the model is that profits are not taxed while they remain within the company and are used for development. Taxation arises only when profits are distributed.

The taxable objects will include:

  • dividends;
  • other forms of profit distribution;
  • expenses that are not deductible for tax purposes.

The tax rate will be 15% of the distributed amount or the amount of non-deductible expenses.

For companies that reinvest profits into development, modernization, and business expansion, the new model could potentially reduce the current tax burden compared to the traditional corporate profit tax system. It may also encourage businesses to reinvest funds in equipment, technology, personnel, marketing, and operational development.

At the same time, the importance of high-quality accounting and tax recordkeeping will increase. Errors in documenting expenses or transactions classified as non-deductible may result in additional tax liabilities.

In brief: who will be affected by the changes

  • If you already operate an individual enterprise, a farming household, or a liberal professional practice, you will be able to continue operating after 2027, but under new tax rules.

  • If you plan to establish an individual enterprise, you can do so until the end of 2026. After that date, registration of new individual enterprises under the current regime will be closed.

  • If you work as a freelancer, the independent entrepreneur regime will become broader and more accessible in terms of permitted activities, although income thresholds and excess-income tax rates will change.

  • If you own an LLC (SRL), it is advisable to evaluate the impact of the new distributed-profit taxation model and review expenses related to freelancers and other potentially non-deductible costs.

  • If you operate in trade under the simplified regime, it is important to recalculate the impact of the increase from 1% to 3% and verify the requirements for maintaining your status.

How to prepare: what should be done before the end of 2026

The reform is still under discussion and legislative review, meaning its final form may change. Nevertheless, practical conclusions can already be drawn.

Entrepreneurs should:

  • analyze their current business structure;
  • assess their income and expense structure;
  • recalculate their expected tax burden;
  • review the impact of the new freelancer-related rules;
  • determine whether the current regime will remain advantageous after 2026;
  • consider alternative business structures;
  • prepare documentation and accounting systems for potential changes.

— If you are currently an individual entrepreneur, farmer, or liberal professional, your status will remain in place, but tax conditions will change. It is important to understand how the new 7% / 15% scale compares with your current tax burden and actual expenses.

— If you plan to register an individual enterprise or a liberal professional activity, you should do so before December 31, 2026. After that date, these regimes will be closed to new participants.

— If you currently work or plan to work as a freelancer, the independent entrepreneur regime may become a more universal tool, since from 2027 it is expected to be open to all types of activities.

— If you are a legal entity working with freelancers, you should evaluate the proportion of such expenses in your payroll fund in advance. Exceeding the new 3% limit may lead to additional tax liabilities.

— If you are a trader operating under the 1% regime, it is important to remember that registration must have been completed before July 1, 2026, in order to maintain the status, and that the proposed rate will increase to 3%.

The earlier this analysis is carried out, the more opportunities there will be to choose the most suitable business model.

Conclusion

The 2027 tax reform is an attempt to systematically simplify a system that has accumulated numerous regimes, exceptions, and special rules over the years.

For freelancers, the changes may generally be positive: removing sector-specific restrictions makes the regime more universal, while reducing the rate on income above the threshold makes it more flexible.

For individual entrepreneurs and liberal professionals, the situation is more nuanced. On the one hand, the tax rate for income up to MDL 1 million is reduced to 7%. On the other hand, the approach to determining the tax base is changing, meaning that the final tax burden will depend on expenses and the specifics of the activity.

For LLCs and other legal entities, the new model may become an incentive to reinvest profits, while simultaneously requiring more careful expense tracking and tax planning.

The key takeaway is that 2027 may significantly reshape the tax architecture of businesses in Moldova. Therefore, waiting until the final months is not a good strategy. Entrepreneurs should already conduct a tax assessment by determining their current regime, turnover, expense structure, freelancer payments, profit distribution plans, and the feasibility of maintaining or changing their current status.
If you would like to understand how the proposed changes may affect your specific business, FlagMAN-D specialists can help analyze your situation, calculate potential tax liabilities, and develop an optimal strategy for operating under the new conditions.
This material is provided for informational purposes only and is based on the draft tax policy for 2027 published by the Ministry of Finance of the Republic of Moldova on June 11, 2026, for public consultation. All figures and provisions refer to the proposed draft legislation rather than the current law. The final version of the legislation may differ from what is described above.
2026-06-18 18:00