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Summary
Moldova uses a 12% flat income tax on personal income, with a personal allowance (scutire personala) that shelters a portion of earnings from tax. Employees also make compulsory contributions to the social insurance fund (pension and social protection) and mandatory health insurance. Moldova’s currency is the Moldovan leu (MDL).
How it works
Your take-home pay is your gross salary minus three main deductions:
- Income tax - a flat 12% rate, applied after subtracting the personal allowance
- Social insurance contributions - 9% of gross salary for pension and social protection
- Health insurance contributions - 9% of gross salary for mandatory health coverage
The personal allowance of 29,700 MDL per year reduces your taxable income before the 12% rate is applied. This means lower earners pay proportionally less tax despite the flat rate structure.
Income Tax Rate (2025)
Moldova applies a flat income tax rate:
| Taxable income | Rate |
|---|---|
| All income above personal allowance | 12% |
The personal allowance (scutirea personala) is 29,700 MDL per year. Only income exceeding this threshold is subject to the 12% tax. Additional allowances may be available for dependants or disability.
Social Security Contributions
Employee contributions have two components:
| Component | Employee rate |
|---|---|
| Social insurance (asigurari sociale - pension) | 9% |
| Health insurance (asigurare medicala) | 9% |
| Total employee rate | 18% |
These rates apply to the employee’s gross salary. The employer also contributes 24% for social insurance separately, which is not deducted from the employee’s pay.
The formula
Where
Worked example
200,000 MDL gross annual salary
Social insurance (9% of gross)
= 18,000 MDL
Health insurance (9% of gross)
= 18,000 MDL
Taxable income (gross minus personal allowance)
= 170,300 MDL
Income tax (12% of taxable income)
= 20,436 MDL
Total deductions
= 56,436 MDL
Result
Take-home pay = 200,000 MDL - 56,436 MDL = 143,564 MDL/year (11,964 MDL/month)
Assumptions & limitations
- Uses the standard 12% flat rate and standard personal allowance of 29,700 MDL
- Assumes a single taxpayer with no dependants - additional allowances are available for married couples and those with dependants
- Does not model employer social insurance contributions (24% of gross, but not deducted from the employee’s salary)
- Does not account for any tax deductions or credits beyond the standard personal allowance
- Assumes salaried employment - self-employed workers and individual entrepreneurs have different contribution structures
- Income tax is calculated on gross income minus the personal allowance; some interpretations deduct social contributions before applying tax, which would lower the tax amount slightly
- Moldova’s currency is the Moldovan leu (MDL), denoted with the symbol L