Moldova's State Fiscal Service has published SFS order no. 162 of 17 May 2023, which provides guidance on various tax questions including questions in relation to depreciation. Some of the key points include:

Assets Not Put into Operation

With respect to fixed assets not put into operation, it is noted that depreciation is calculated on fixed assets with a service life of more than one year and a value of more than MDL 12,000, which begins in the month following the month in which the asset is put into operation using the straight-line method. As such, depreciation is not calculated for tax purposes on assets that have not been put into operation.

Assets Without a Prescribed Useful Life

The useful life of fixed assets is determined according to the provisions of the Catalog of Fixed Assets, approved by Government Decision no. 941/2020. In cases where an asset is not found in the Catalog (annex), including its components, the useful life can be determined by an internal commission, an independent expert, or according to the recommendations of manufacturers, suppliers, or distributors, with subsequent approval by the management of the taxpayer.

Assets Received Free of Charge

Deductions for deprecation are not allowed in respect of fixed assets that have been received free of charge, except in cases where their value was included in the taxpayer's taxable income. Further, in the case of partial financing of the procurement of fixed assets from sources that constitute non-taxable income, the depreciation will be calculated for the part borne by the taxpayer.

Assets Partially Used During a Tax Period

Where a fixed asset is partially used in business activity during a tax period, such as fixed assets used seasonally or assets in the process of repair, modernization, or conservation that are not taken out of service, depreciation is calculated and allowed as a deduction for tax purposes for the entire tax period.

Subsidized Assets

Where a taxpayer acquires a fixed asset and subsequently obtains a subsidy in respect of the asset, such as a subsidy for agriculture, the amount of the subsidy obtained will not affect the value of the asset for depreciation purposes.