The draft tax code includes taxes on inheritance and donations received by non-residents.
What a “wonderful” meeting Sandu had with the diaspora, to say the least. People were silenced, microphones were snatched from their hands, and they were accused of spreading disinformation and “Kremlin propaganda.” The leitmotif of the events was “you’re not in Kansas anymore,” which every Moldovan who came to their historical homeland at the president’s invitation felt firsthand.
But the “surprises” did not end there. The Sandu regime decided to impose additional taxes on diaspora members — after all, they are non-residents, so let them pay.
What Lies Behind the Wording?
The draft tax reform proposes taxing inheritances and donations received by non-residents. This includes Moldovan citizens without permanent residence in the country who spend fewer than 183 days per year on its territory.
Finance Minister Victoria Belous publicly claims that the changes will only affect foreign citizens:
“I will clarify the issue of inheritance. The diaspora and individuals who are citizens of the Republic of Moldova will not be affected. Currently, in Article 20 of the Tax Code, we have a provision stating that property received as inheritance by citizens of the Republic of Moldova is not subject to tax. If a person holds citizenship of the Republic of Moldova, regardless of whether they are a resident or non-resident, this income is not taxable for them. In the draft tax policy, we propose taxing inheritances received by foreign citizens who are not present on the territory of the Republic of Moldova for 183 days. That is, these are individuals who do not hold citizenship of the Republic of Moldova, do not permanently reside on the territory of the Republic of Moldova, or are not physically present on the territory of the Republic of Moldova for 183 days.”
However, the text of the draft suggests the exact opposite. Article 71 of the Tax Code proposes supplementing the list of non-resident income with a new paragraph “w” — “property received as a gift or by inheritance.” At the same time, the concept of “non-resident” in Moldovan tax legislation is clearly defined and has nothing to do with citizenship. As civic activist Andrei Ioniță explained:
“A tax non-resident and a foreign citizen are not synonyms. One can be a Moldovan citizen and a tax non-resident.”
Ministry of Labor Calls the Provision Discriminatory
It is telling that even the Ministry of Labor and Social Protection, upon reviewing the draft, pointed out its discriminatory nature. The ministry noted that for residents, the exemption regarding property received as a gift or inheritance from first-degree relatives or between spouses not being considered taxable income is preserved, and proposed supplementing the text of the newly introduced paragraph w) with the same exemption to avoid discriminatory provisions based on residency status.
The Ministry of Finance rejected this amendment. In its official response, the ministry stated:
“The distinction between residents and non-residents in matters of taxation of gifts and inheritances is not discrimination but reflects the specific tax regime applicable to each category of taxpayer and the need to ensure effective tax administration. In the case of non-residents, verification of the degree of kinship, the genuine nature of the gift or inheritance, and the origin of the property can be significantly more complex, especially when legal relationships and relevant documents are governed by the legislation of other states. Thus, maintaining a differentiated tax regime pursues the legitimate goal of preventing abuse and protecting the tax base.”
In other words, the Ministry of Finance itself speaks of differentiation between residents and non-residents, while the minister publicly claims the opposite. Civic activist Andrei Ioniță emphasized:
“The Minister of Finance is manipulating and lying to citizens. Your own draft says otherwise. Write into the law that Article 71 does not apply to Moldovan citizens. Until that happens, statements on social media have no legal force.”
Lawyer Doina Străiteanu also stated that the government draft looks different: the document provides for a 12% tax on inheritances and donations for non-residents — and this definition encompasses many Moldovan citizens living abroad.
The PAS members continue to lie without even planning to stop. Earlier, Prime Minister Tofan, in defense of this approach, stated that “everyone lies, but PAS lies less.” Somehow, that does not seem to be the case.
