THE CHARACTERIZATION OF INCOME TAXATION FROM THE FOREIGN PERSPECTIVE IN THE COMPARISON BETWEEN REPUBLIC OF MOLDOVA AND ROMANIA

Svetlana SLUSARENCO, Veronica POZNEACOVA Universitatea de Stat din Moldova

Abstract

Income tax and corporate tax represent some of the primary sources of income of the state, being placed at the top of
the hierarchy of the tax system. Each state regulates taxes differently. In particular, the percentage share differs, which
is a manifestation of state sovereignty in matters of taxation. Currently, only the income tax is regulated in the Republic
of Moldova’s legislation, but the legal entities that disburse Value-Added Tax pay the tax calculated from the amount of
the obtained profit. There is a confusion between the notion of income and profit in the current regulation. Some uncertainties
arise in the calculation of the income tax paid by legal entities that disburse VAT. In this context, it is necessary to define
the notions of income and profit, as well as to analyze the existing regulations in comparative aspect, in order to determine
the specifics of regulating the corporate tax in the Romanian legislation, which represents the model for regulating the
respective tax. This study analyzes the correlation between the notion of income and profit, as well as the specifics of
tax regulation, the taxable object of which is the income or profit of natural and/or legal persons. In order to achieve this
goal, we analyzed the income tax, as well as its regulation in the current legislation of the Republic of Moldova and
Romania, in comparative aspect.
Keywords: taxation, income, profit, tax legislation, legal entity.