The tax model of an SRL depends on the company status, turnover, expense structure, VAT, business activity and the decision to distribute profit. A wrong tax setup can make a simple company expensive to manage.
For the owner, the important point is not only the tax rate, but also the tax base: tax may be calculated on all sales or on profit after expenses.
Under the 4% regime, tax is calculated from the company income. Expenses do not reduce the tax base. This option is usually reviewed for service companies with a low expense structure.
If profit is distributed to a shareholder after taxation, dividend tax is applied separately.
Under the general model, income and documented expenses are taken into account. Corporate income tax is calculated on profit, while 20% VAT is administered separately under tax accounting rules.
VAT is not simply an additional 20% on profit. It is a separate tax mechanism with input VAT and output VAT.
The 4% regime is usually reviewed for services, consulting, digital projects, small agencies and other models where expenses are low or insignificant. If a company receives 100,000 MDL in income and has almost no expenses, 4% tax can be simpler and more predictable.
But if the company has purchases, rent, equipment, logistics, import, inventory or large expenses, the 4% regime may be less beneficial because expenses do not reduce the tax.
If a shareholder receives company profit for personal needs, it must be documented correctly. Usually this is done through dividend distribution after taxation and after a formal decision. The administrator personal expenses must not be mixed with company expenses.
In a simplified explanation, clients often see the model as 4% of sales plus 6% when profit is withdrawn. But these payments have a different legal nature and must be supported by accounting documents.
VAT changes not only the price, but also the working process: documents, e-Factura, input VAT, output VAT, import, export and reporting deadlines.
Mandatory VAT registration is checked based on the volume of taxable supplies over 12 consecutive months. For 2026, it is important to apply the 1,700,000 MDL threshold with attention to the effective date.
The standard VAT rate is 20%, unless a reduced rate or a special regime applies to the specific transaction.
A VAT payer must keep records of input and output VAT, issue documents correctly, manage invoices, e-Factura, imports and sales.
Sales, expenses, dividends and VAT require proper documentation. Even if the model seems simple, accounting must separate company expenses from the personal expenses of the administrator or shareholder.
Before active sales begin, it is better to define the tax regime, VAT need, primary documents and the rules for paying company expenses.
The tax regime affects contracts, prices, expenses, documents, bank payments and the future accounting setup of the company.
If the company has low expenses, the 4% regime may be convenient. But with purchases, rent, import, logistics or equipment it should be compared with the general system.
When tax is calculated on profit, contracts, acts, invoices, bank operations, salaries and expenses must be documented correctly.
A VAT payer must control input and output VAT, registration deadlines, invoices, e-Factura, import, export and declaration accuracy.
These answers explain the difference between the 4% regime, 12% tax, VAT and dividends.
If an SRL applies the 4% regime, tax is calculated from the company income, meaning sales, without deducting expenses. When profit is distributed to an individual, dividend tax is withheld separately.
In this regime the tax base is income from activity. Company expenses do not reduce the tax amount. This regime is often reviewed for service companies and business models with low expenses.
Dividends are paid to shareholders from profit remaining after taxation. For an individual, dividend tax is withheld. Dividends should not be confused with the administrator personal expenses paid from the company account.
Mandatory VAT registration is checked when the threshold of taxable supplies is reached over 12 consecutive months. For 2026, the 1,700,000 MDL threshold should be applied with attention to the effective date of the changes.
A VAT payer must separately track sales, expenses, input VAT, output VAT and profit tax. Corporate income tax is calculated on profit, while VAT is administered separately.
This can be used only as a simplified commercial explanation when profit is distributed. Legally, the 4% tax and dividend tax have different bases, timing and documents.