Non-resident entities operating in Moldova through a permanent establishment are subject to tax on income sourced from Moldova. Effective 1 January 2023, the general provisions on the taxation of non-residents are revised and henceforth provide that:

Non-residents obtaining taxable income from Moldova must pay tax determined according to the manner established in the domestic tax law;
Expenses incurred by non-residents are deductible from income only if directly related to such income subject to tax in Moldova; and
The limit on the deductibility of administrative expenses incurred by a non-resident for its permanent establishment situated in Moldova is removed. The previous rule had limited such expenses to 10% of the permanent establishment's employees' salary.

Specific regulations issued on 5 July 2018 specify that the income of non-residents is subject to tax in Moldova if it is deemed obtained in Moldova. Income deemed obtained in Moldova includes income obtained from business activities or work performed in the territory of Moldova. It is clarified that any income earned by a non-resident from providing services within Moldova is considered to be sourced in Moldova.

Income of non-residents from activities performed outside the territory of Moldova is not subject to tax, even if the source of payment is from Moldova. Effective 1 January 2023, fees earned by a non-resident from a permanent establishment within Moldova that are considered to be an expense of that permanent establishment are not considered to be sourced in Moldova.

Non-resident entities deriving income from the source in Moldova without permanent establishment are subject to withholding tax on their income (see Sec. 8.2.2. below for tax rates).

Where a non-resident operating both within and outside the territory of Moldova does not keep separate records for its Moldovan activities, the income of the permanent establishment of such entity can be determined based on one of the following indicators:

The share of gross income derived from sales in Moldova compared to the total sales income of the non-resident legal entity;
The share of expenses related to business activities carried on in Moldova compared to the total expenses of the non-resident legal entity; or
The share of employees involved in business activities carried on in Moldova compared to the total number of employees of the non-resident legal entity.

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