The 4% small business tax in Moldova is, in 2026, the regime automatically applied by any LLC (SRL) that is not registered for VAT: the company pays 4% of its income from operating activities, with no deduction for expenses, pays the tax in quarterly instalments and files a single annual return (form SIMM24) by 25 March. The regime is set out in Chapter 7¹ of Title II of the Tax Code (Codul fiscal, art. 54¹–54⁴) and is officially called the "income tax on income from operating activities" (impozit pe venitul din activitatea operațională) of economic agents in the small and medium-sized enterprise sector (SIMM). Below you will find who can apply it, who is excluded, which thresholds changed in 2026 and when the standard 12% rate is the better choice.
1. What the 4% regime is and where it is regulated
The SIMM regime is a tax on income, not on profit. The 4% rate has applied since 1 January 2018 (it was 3% before) and is levied on all income from operating activities, regardless of how much you spent to earn it.
2. Who can apply the 4% tax in 2026
The regime applies to economic agents not registered for VAT (art. 54¹ para. (1)). In practice, a newly formed LLC falls into this regime automatically, unless it is excluded or opts for the standard regime.
The real limit is the mandatory VAT registration threshold, which changed twice within a year:
A company that exceeds the threshold registers for VAT with the State Tax Service (SFS) by the last day of the month in which it was exceeded.
Some companies may nevertheless opt for the standard 12% regime (art. 54¹ para. (3)). This option is open to companies that:
The choice is recorded in the company's accounting policy (politica contabilă): by 25 April for the first two categories, and by the 25th of the month following the quarter of registration for new companies.
3. Who cannot apply the 4% regime
The regime does not apply to:
Moldova IT Park residents do not apply the 4% rate either: they have their own single tax, described in our IT Park guide.
4. The tax base: income from operating activities
The taxable object is income from operating activities earned in the tax period (art. 54²). The tax period is the calendar year; for a new company it starts on the date of state registration.
5. Deadlines: quarterly payments and the SIMM24 return
The tax is calculated annually but paid in instalments (art. 54⁴):
6. How to leave the regime and what changes from 2027
Leaving the regime is linked mainly to VAT:
For 2027, on 8 September 2026 the Government approved the draft fiscal policy, which proposes lowering the threshold for business and management consultancy from 60% to 25% of income. The measure applies only once Parliament adopts it.
7. 4% or 12%: which is better?
Under the standard regime, the tax is 12% of taxable income, i.e. of profit after deducting justified expenses. Losses can be carried forward for the next five years. In addition, for 2026 the zero rate on undistributed profit is maintained for companies with annual turnover of up to MDL 100 million and no more than 249 employees (with some exceptions): the tax becomes due only when profit is distributed.
The rough calculation is simple: 4% of income equals 12% of profit when the profit margin is about 33%.
Services with low costs usually come out ahead at 4%. Low-margin trading and companies in their first years, with large investments or losses, often do better at 12%, if they can choose it (for example, in the year of incorporation). The 4% regime also has an administrative advantage: you do not have to prove the deductibility of each expense. The final decision is best made with your accountant, based on the business's real figures.
Frequently asked questions
Does a newly registered LLC automatically pay the 4% tax?
Yes, if it is not a VAT payer and does not fall under the exclusions in art. 54¹. If it prefers the standard 12% regime, it must record this in its accounting policy by the 25th of the month following the quarter of registration.
Is the 4% due even when the company makes a loss?
Yes. The base is income from operating activities, not profit, so the tax is due even when expenses exceed income.
What happens if I exceed MDL 1.7 million?
If taxable supplies exceed MDL 1.7 million in 12 consecutive months, the company must register for VAT and switches to the standard regime from the date of registration.
Does the 4% regime replace payroll taxes and contributions?
No. It replaces only the company's income tax. Income tax withheld from salaries, social and health contributions and local taxes are paid separately.
The tax regime is chosen after registration, but everything starts with the incorporation documents. SRLRapid fills in the official ASP forms for registering your LLC (the Articles of Association (Statutul), the minutes of the constituent meeting, the registration application and the founders' declarations) from a single online questionnaire, ready to sign and file at ASP.
