Moldova updated the definition of permanent establishment and published guidance (Order No. 85 of 17 February 2021) on the changes in the definition.

Effective 1 January 2021, a permanent establishment is defined as a fixed place of business through which a non-resident undertakes, fully or partly, entrepreneurial activities in Moldova either directly or through a dependent agent. Fixed place of business includes:

A place of management;
A branch office or a subdivision;
A representative office;
An office;
A factory;
A plant;
A shop or workshop;
A mine, oil or gas well, quarry, or any other place for excavation of natural resources or growth of agricultural crops;
A construction site or construction, installation or assembling, mounting project or activities related to technical supervision, service and operation of relevant machinery but only if such site, project or activity lasts for more than 6 months;
Sale of goods from warehouses located in the territory of Moldova, belonging to or rented by the non-resident person;
Provision of other services, the performance of other activities for more than 3 months in Moldova, except for preparatory or auxiliary activities as well as for those covered under the provisions as permissible activities of the representative office, or the work carried out under an employment contract (agreement) and freelance work unless otherwise provided for in the Tax Code; and
The development in Moldova of any activity covered above by a dependent agent or maintenance by this agent of a stock of goods or commodities in Moldova for regular delivery on behalf of the non-resident person.

The following activities (generally those of a preparatory or auxiliary nature) do not result in the creation of a permanent establishment for a non-resident in Moldova:

The use of installations exclusively for the purpose of storage or display of goods or merchandize belonging to the non-resident;
Maintaining a stock of goods or merchandize belonging to the non-resident exclusively for the purpose of storage or display;
Maintaining a stock of goods or merchandize belonging to the non-resident exclusively for the purpose of processing by another person;
Maintaining a fixed place of business exclusively for the purpose of purchasing goods by the non-resident;
Maintaining a fixed place of business exclusively for the purpose of collecting and/or distributing information, marketing, advertising, or market research of goods (services) sold by the non-resident, if such activity is not the principal (ordinary) activity of the non-resident;
Maintaining a fixed place of business for the purpose of signing contracts by a person on behalf of the non-resident, if the contracts are signed in accordance with the detailed written instructions of the non-resident; and
Carrying out the activity as described above for a construction site or a construction, installation, or assembly project, etc., that does not exceed 6 months.

Powerful Tax Solutions

Tax Rules Engine

Collaboration Tools

Latest Tax News