Tax Evaders in Moldova’s Rental Market Feel the Heat as Authorities Crack Down on Evasion Penalties

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A Surge in Tax Revenue and a Warning to Landlords

The Republic of Moldova has recorded a significant surge in tax revenue from rental income, with the State Tax Service (SFS) collecting 22.7 million lei for the first four months of 2024 - a 32% year-on-year increase.

The Results of Audits and Enforcement Actions

A series of audits conducted on 119 landlords during the January-April period yielded substantial results, with authorities collecting:

• 110,000 lei in taxes
• 14,300 lei in late payment penalties
• 8,000 lei in fines

These stiff penalties served as a stern warning to those who may have been tempted to evade their tax obligations.

Real Estate Rental Contracts on the Rise

Data from the State Tax Service reveals that the reference period saw a significant increase in real estate rental contracts, with:

• 8,623 registrations recorded - a 17.6% rise compared to the same period in 2023

This growth is expected to contribute to an uptick in tax revenue for the remainder of the year.

A Positive Impact and Future Outlook

The authorities’ efforts to crack down on tax evasion have clearly had a positive impact, and it seems that landlords are taking note. As the Moldovan government continues to tighten its grip on tax compliance, it remains to be seen whether this trend will continue or if there are any further measures in store for those who refuse to pay their fair share.

Conclusion

The recent surge in tax revenue from rental income is a welcome development for the Moldovan government. The audits and enforcement actions have sent a clear message to landlords that tax evasion will not be tolerated, and it remains to be seen whether this trend will continue or if further measures will be implemented to ensure compliance with tax obligations.