Dividend Distribution
for Companies in Moldova

Most entrepreneurs in the Republic of Moldova think about how to obtain maximum profit, so that subsequently, they can improve their financial situation.
But, unfortunately, not everything is as simple as it seems at first glance. Unlike individual owners who can withdraw money whenever they need it, in the case of an LLC, things are a bit different.

Entrepreneurs have the possibility to withdraw money from the company in the form of dividends.

In this article we'll briefly explain what dividends are, how often dividends can be distributed, how they're taxed, in what cases and how their withdrawal occurs for companies in Moldova and what are the rules of these payments in the context of accounting services.

When do you have the right to distribute dividends?

Dividends can be distributed to partners only within the limit of NET profit obtained by the company, and are distributed to partners depending on the share held in the company.

In the case of an LLC, the decision regarding dividend distribution as well as the distributed amount is established within the General Meeting of Partners by the company's partner or partners.

The frequency of dividend distribution within an LLC is not predetermined by mandatory term (monthly, quarterly or annually), if the company has obtained profit and the founders decide to withdraw dividends, it's only necessary to notify the accountant for preparing Minutes of the General Meeting of Partners regarding dividend distribution for signing.

Dividend taxation in the Republic of Moldova.

Any amount withdrawn from the company in the form of dividends is taxed, where the dividend tax is 6%, which must be calculated and paid to the state budget by the company by the 25th inclusive of the month following the one in which dividends were distributed, but leave this concern to Ducont.

Dividends as income source for loan approval.

Since 2021, most banking institutions have started considering income obtained from dividend distribution of individuals for loan approval.

If after reading this article there are still some questions or uncertainties, which would be perfectly normal since there are many unknown terms for some beginner entrepreneurs, don't hesitate to contact us at phone number (00 22 44) or visit one of our branches for a consultation on fiscal, accounting matters or business startup that is absolutely free.

Company Ducont provides accounting services for all types of enterprises, including operations related to dividend withdrawal.
From tax consultation to registering an LLC.
Choose to collaborate with the best, for your company's long-term development!