Investment Income - Regulations in National and International Tax Legislation

Abstract

Reasoning for the decision to invest and the role of fiscal policy objectives on the level of investment. The use of financial instruments contributes to additional revenue that can be used for the social and economic development of taxpayers in the long term. Globalization of economic processes, and the deepening of international economic and financial cooperation, have led to the diversification of income earned and increased the visibility of our country in terms of investment. The Republic of Moldova can be considered an attractive area for foreign investors, while at the same time remaining a favourable area for domestic investors, due to its geographical location, fiscal, political, and social regulations, as well as the existence of a qualified and cheap labour force. The subject of the paper focuses on examining aspects of tax law on financial income from investment activities in national and international practice. Several methods were used in the research including statistical, analytical, comparative analysis, content analysis, graphical illustration, etc. In conclusion, as a result of the analysis, it was possible to identify the challenges faced by Moldovan taxpayers who obtain financial income from placement activities to ensure an increasing level of income, presenting the advantages and disadvantages.