Moldova: Employee Benefits Update
August 2016: The following changes in employee benefits have been reported back by Asinta’s partner in Moldova, MAI CEE:
Legal/Legislative Changes:
In the IT domain:
In April 2016, the Moldovan Parliament adopted a law which will allow special Information Technology Parks to be developed. These IT Parks will grant special tax incentives to the technology companies located there. Residents will be taxed in the amount of 7% of the revenue from sales, which incorporates corporate and personal income tax, social security, health care contributions, local taxes, property taxes and road fees. Residents will also receive tax exemption from customs duties and VAT on imported monitors, computers, network equipment, any associated parts & accessories, and any equipment necessary for the realization of activities of the IT Park residents. Impact on Employee Benefits: there will be no additional taxes on premiums paid by IT companies for health, life, personal accident insurances or other benefits.
Market Trends:
The life insurance segment in Moldova registered a growth of 9.3% in 2015. Meanwhile general insurance only saw a growth of 1.2%. The share of life insurance in total gross written premiums remains at a low level of 7.12%, however. The leader in life insurance is GRAWE CARAT Asigurari, with a 94.5% share of the total life insurance market, followed by Sigur-Asigur Ins.Co. (5.26%) and ASITO (0.18%).
Other:
The fakultative insurance premium paid by corporations for life, health, and personal accident (at work) is free from corporate tax in Moldova (Government Decision no. 484 from 04 May 1998). The deduction of annual expenses incurred by the employer for voluntary health insurance premiums for the employee will be up to 50% of the compulsory healthcare insurance premium as a fixed amount in absolute figures (Fiscal Code of RM), however.