3 February 2022 -Members of the Economic Council to the Prime Minister are discussing solutions to facilitate remote working. Today, Moldovan employers are having problems paying the salaries of their workers who work for them in another country, remotely.

The main problem is that at the end of the month, when the employer has to transfer the employee’s salary abroad, it is difficult for the employer to withhold the taxes related to the salary, i.e. income tax, social security contributions and health insurance contributions.

This is because the foreign employee does not have a personal tax number (IDNP) and social security contributions and health insurance contributions can be paid by a person who has an IDNP, whereas income tax may be withheld by the employer on the basis of the employee’s serial number and passport number.

At today’s meeting, the solution to this problem was discussed as the contracting or remote employment of foreign nationals under service contracts, excluding the obligation to have signed handover and receipt documents and the charging and refund of VAT.

Another solution discussed was the employment of foreigners under individual employment contracts stipulating the payment of social and medical contributions.  It is also proposed to reduce the liability for Health and Safety at Work and to pay the salary in foreign currency for those working remotely.

Representatives of state institutions present at the debate said that these proposals need careful consideration so that employees’ rights are respected. At the same time, the budget of the Republic of Moldova should not suffer by omitting potential income from remote employment contracts concluded with foreigners abroad.

All the final proposals discussed are to be compiled in a document that can be taken into account when drafting regulatory changes.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.