MOLDOVA_The business community asks the regulator to review insurers' taxes and payments to the budget of the National Commission

18 December 2023 — Marina MAGNAVAL
Representatives of the business community of Moldova are asking the regulator to review the amount of taxes and payments for 2024 that insurance companies are to pay to the budget of the National Commission for the Financial Market, bizlaw.md writes.

In a letter addressed to the authorities, the European Business Association (EBA Moldova) expresses concern about the provisions of the Decision d/d July 11, 2023 on amending the Decision d/d October 25, 2022 on the amount of taxes and payments to the budget of the National Commission for the Financial Market for 2023.

According to the 2023 Decision, payments from insurance companies to the budget of the National Commission for 2023 amount to 0.3% of their written premiums. As follows from the text of the regulatory act, 0.3% of the amount of written premiums will be charged by the National Commission for both non-life and life insurance.

EBA Moldova notes that before this change, the 2022 Decision differentially regulated payments to the budget of the National Commission as a market regulator: 0.75% to 1% for non-life insurance, and 0.35% for life insurance GWP.

According to the EBA, in some EU countries the regulator does not charge for long-term life insurance, or the fee is significantly lower than the fee for non-life insurance, which is usually short-term. For example, in Romania the tax on compulsory insurance RCA is also 1%, as was Moldova until July 2023, the tax on life insurance is 0.3%, which is comparable to the tax in Moldova until July 2023 (0.35%). In Croatia, Bulgaria, Slovenia, Hungary, Serbia, Montenegro, Bosnia and in Ukraine, for all life insurance contracts for a period of more than 10 years, the tax is 0%.

In this regard, representatives of the business community believe that the 2023 Decision of the National Commission was erroneous, since payments for non-life insurance to the budget, which is usually short-term, are combined with life insurance, which is long-term, while they should be regulated differently based on duration, the source said.



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