Comparative Analysis of Personal Income Taxation in the Republic of Moldova and other Countries: Efficiency and Impact

Abstract

Due to the differences between tax systems in various countries, their comparative analysis is very important for setting relevant standards for the Republic of Moldova. The study focuses on the taxation of individual income in the Republic of Moldova, Romania, Ukraine, France and Austria, using the methodology of legislative comparison, statistical data and academic research. The research focuses on five indicators: taxpayer, taxable income, capital gains, deductions and tax rates. The objectives are to assess the efficiency and impact of these systems and to find appropriate solutions in the Moldovan context. The results indicate that progressive regimes in France and Austria significantly reduce inequality through efficient redistribution, while proportional regimes in Moldova, Romania and Ukraine are less complex but also less socially efficient. This research argues that more efficient elements of progressive regimes should be adopted in Moldova in order to increase the fairness and efficiency of the tax system. Significant differences in tax deductions and capital gains taxation have a direct impact on taxpayers' net income and tax compliance. CZU: 336.226.14(478+100); JEL: H24, H25