Tax Administration Modernization Project

Abstract*

The development objective of Tax Administration Modernization Project for Moldova is to improve revenue collection, tax compliance and taxpayer services. This project has five components. 1) The first component, Tax Policy Reform, will finance a comprehensive review of the legal framework including: (i) revisions to align Moldovan legislation on Value Added Tax (VAT) and Excise Duties in line with the European Union (EU)-Moldova Association Agreement;... Show More

Development Objective

To support business survival and sustain employment in the context of the COVID-19 pandemic, through temporary tax relief, and improve taxpayer services in the Republic of Moldova

Key Details

Project Details

Project ID
P127734
Status
Closed
Team Leader
Iryna Shcherbyna-Taferner , May Olalia
Borrower 2
Republic of Moldova

Country
Moldova
Disclosure Date
May 29, 2014
Approval Date
(as of board presentation)
June 6, 2016
Effective Date
January 25, 2017

Total Project Cost 1
US$ 20.00 million
Implementing Agency
The State Tax Service
Region
Europe and Central Asia
Fiscal Year 3
2016

Commitment Amount
US$ 20.00 million
Environmental Category
C
Last Update Date
May 28, 2024
Closing Date
November 30, 2023

Consultant Services required
Yes
Last Stage Reached
BANK APPROVED

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Economic Policy

FY17 - Fiscal Policy30%
- FY17 - Tax policy30%

FY17 - Private Sector Development

FY17 - Jobs100%

FY17 - Public Sector Management

FY17 - Public Administration40%
- FY17 - E-Government, incl. e-services40%
FY17 - Public Finance Management30%
- FY17 - Domestic Revenue Administration30%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
International Bank for Reconstruction and Development	12.58
IDA Credit	7.42

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	12.58
IDA Commitment	7.42
IBRD + IDA Commitment	20.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	20.00

Summary Status of World Bank Financing (US$ Millions) as of March 31, 2025

No data available.

Detailed Financial Activity as of March 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Dec 15, 2022	IBRD-86250	Loan Repay	51,922.37
Dec 15, 2022	IBRD-86250	Int Charges	803.37
Apr 11, 2023	IBRD-86250	Loan Disb	27,853.65
Jun 20, 2023	IBRD-86250	Loan Disb	126,273.35
Jun 15, 2023	IBRD-86250	Loan Repay	755.90
Dec 15, 2022	IDA-58290	Loan Repay	4,537.18
Dec 15, 2021	IBRD-86250	Int Charges	1,200.97
Dec 15, 2021	IBRD-86250	Int Charges	23,686.75
Dec 15, 2021	IBRD-86250	Loan Repay	211,406.69
Dec 15, 2021	IBRD-86250	Loan Repay	1,200.97
Dec 15, 2022	IBRD-86250	Int Charges	51,922.37
Dec 15, 2022	IBRD-86250	Loan Repay	172,088.95
Dec 15, 2022	IBRD-86250	Loan Repay	803.37
Dec 15, 2022	IDA-58290	Loan Repay	56,860.43
Dec 15, 2022	IDA-58290	Int Charges	23,269.20
Dec 15, 2022	IDA-58290	Int Charges	23,269.20
Dec 15, 2022	IDA-58290	Int Charges	31,500.29
Dec 15, 2022	IDA-58290	Loan Repay	54,981.72
Oct 6, 2022	IBRD-86250	Loan Disb	55,855.90
Feb 4, 2021	IDA-58290	Loan Disb	1,871,740.10
Jun 15, 2021	IBRD-86250	Int Charges	7,776.42
Jun 15, 2021	IBRD-86250	Int Charges	13,848.45
Jun 15, 2021	IBRD-86250	Loan Repay	200,299.16
Jun 15, 2021	IDA-58290	Int Charges	370.23
Jun 15, 2021	IDA-58290	Loan Repay	34,963.18
Jun 15, 2021	IDA-58290	Loan Repay	90,892.23
Jun 15, 2021	IDA-58290	Int Charges	13,255.75
Jun 15, 2021	IDA-58290	Int Charges	13,255.75
Jun 15, 2021	IDA-58290	Int Charges	20,783.10
Aug 24, 2020	IDA-58290	Loan Disb	2,500.00
Dec 15, 2020	IBRD-86250	Int Charges	16,871.09
Dec 15, 2020	IDA-58290	Int Charges	142.13
Dec 15, 2020	IDA-58290	Int Charges	7,485.69
Dec 15, 2020	IDA-58290	Int Charges	7,485.69
Dec 15, 2020	IDA-58290	Int Charges	12,106.22
Feb 4, 2021	IBRD-86250	Loan Disb	9,907,927.00
Jun 15, 2020	IDA-58290	Int Charges	91.53
Jun 15, 2020	IDA-58290	Int Charges	5,183.83
Jun 15, 2020	IDA-58290	Int Charges	5,183.83
Jun 15, 2020	IDA-58290	Int Charges	8,503.43
Jun 16, 2020	IBRD-86250	Int Charges	15,704.74
Oct 8, 2020	IDA-58290	Loan Disb	24,800.00
Mar 26, 2020	IDA-58290	Loan Disb	798,445.90
Mar 10, 2020	IDA-58290	Loan Disb	138,999.98
Dec 15, 2019	IDA-58290	Int Charges	34.53
Dec 15, 2019	IDA-58290	Int Charges	34.53
Dec 15, 2019	IDA-58290	Int Charges	3,530.01
Dec 15, 2019	IDA-58290	Int Charges	3,530.01
Dec 17, 2019	IBRD-86250	Int Charges	15,528.09
Dec 15, 2019	IDA-58290	Int Charges	5,849.05
May 6, 2020	IDA-58290	Loan Disb	3,600.00
Jun 15, 2019	IDA-58290	Int Charges	3,075.85
Jun 15, 2024	IBRD-86250	Int Charges	248,150.94
Jun 15, 2024	IBRD-86250	Loan Repay	250.30
Jun 15, 2024	IBRD-86250	Int Charges	250.30
Mar 31, 2024	IDA-58290	Loan Cancel	698.12
Mar 31, 2024	IBRD-86250	Loan Cancel	342,195.72
Jun 15, 2024	IDA-58290	Int Charges	4,121.86
Jun 15, 2019	IDA-58290	Int Charges	3,075.85
Dec 10, 2019	IDA-58290	Loan Disb	450.00
Dec 15, 2018	IDA-58290	Int Charges	1,839.90
Dec 15, 2018	IDA-58290	Int Charges	3,066.49
Dec 7, 2018	IDA-58290	Loan Disb	53,340.71
Nov 20, 2018	IDA-58290	Loan Disb	500.00
May 14, 2019	IDA-58290	Loan Disb	5,000.01
Jun 15, 2019	IBRD-86250	Int Charges	6,806.99
Jun 15, 2019	IBRD-86250	Int Charges	8,820.50
Jul 15, 2019	IDA-58290	Loan Disb	7,700.00
Jun 15, 2019	IDA-58290	Int Charges	5,197.68
Jun 28, 2019	IDA-58290	Loan Disb	66,750.00
Mar 21, 2019	IDA-58290	Loan Disb	76,368.00
Jun 15, 2019	IDA-58290	Int Charges	42.79
Jun 15, 2019	IDA-58290	Int Charges	42.79
Jun 5, 2018	IDA-58290	Loan Disb	104,500.00
Jun 15, 2018	IDA-58290	Int Charges	461.88
Jun 15, 2018	IDA-58290	Int Charges	461.88
Jun 15, 2018	IDA-58290	Int Charges	748.96
Sep 12, 2018	IDA-58290	Loan Disb	12,000.00
Sep 13, 2018	IDA-58290	Loan Disb	437,164.16
Aug 6, 2018	IDA-58290	Loan Disb	55,513.05
Jan 18, 2019	IDA-58290	Loan Disb	14,390.00
Feb 8, 2019	IDA-58290	Loan Disb	11,000.00
Dec 15, 2018	IBRD-86250	Int Charges	15,768.08
Dec 15, 2018	IDA-58290	Int Charges	21.22
Dec 15, 2018	IDA-58290	Int Charges	1,839.90
Mar 30, 2018	IDA-58290	Loan Disb	10,920.00
Dec 15, 2017	IBRD-86250	Int Charges	15,768.08
Dec 15, 2017	IDA-58290	Int Charges	399.09
Dec 15, 2017	IDA-58290	Int Charges	399.09
Dec 15, 2017	IDA-58290	Int Charges	665.15
Jun 15, 2018	IDA-58290	Int Charges	0.54
Jun 15, 2018	IDA-58290	Int Charges	0.54
Jun 15, 2018	IBRD-86250	Int Charges	15,681.92
Jun 26, 2017	IDA-58290	Loan Disb	110,560.97
Jun 15, 2017	IBRD-86250	Int Charges	25,130.11
Jan 31, 2017	IBRD-86250	Fee Charges	31,450.00
May 10, 2022	IDA-58290	Loan Disb	-38,500.00
Apr 5, 2022	IBRD-86250	Loan Disb	38,504.70
Aug 19, 2022	IDA-58290	Loan Disb	962,242.44
Dec 15, 2021	IDA-58290	Int Charges	15,781.52
Dec 15, 2021	IDA-58290	Int Charges	15,781.52
Dec 15, 2021	IDA-58290	Int Charges	26,302.57
Dec 15, 2021	IDA-58290	Int Charges	1,271.03
Dec 15, 2021	IDA-58290	Loan Repay	41,259.42
Dec 21, 2021	IDA-58290	Loan Disb	716,224.56
Dec 15, 2021	IBRD-86250	Loan Repay	23,686.75
Dec 15, 2021	IDA-58290	Loan Repay	80,868.00
Feb 3, 2022	IDA-58290	Loan Disb	615,639.20
Jun 15, 2022	IDA-58290	Int Charges	34,583.89
Jun 15, 2022	IDA-58290	Loan Repay	56,330.61
Jun 15, 2022	IBRD-86250	Int Charges	844.54
Jun 15, 2022	IBRD-86250	Int Charges	19,451.73
Jun 15, 2022	IBRD-86250	Loan Repay	844.54
Jun 15, 2022	IBRD-86250	Int Charges	844.54
Jun 15, 2022	IBRD-86250	Loan Repay	219,703.90
Jun 15, 2022	IDA-58290	Loan Repay	516.83
Jun 15, 2022	IDA-58290	Loan Repay	59,620.23
Feb 23, 2022	IDA-58290	Loan Disb	38,500.01
Nov 9, 2021	IDA-58290	Loan Disb	621,082.00
Jun 15, 2022	IDA-58290	Int Charges	20,750.37
Jun 15, 2022	IDA-58290	Int Charges	20,750.37
Nov 29, 2021	IDA-58290	Loan Disb	65,100.00
Apr 21, 2021	IDA-58290	Loan Disb	41,200.00
Jul 1, 2021	IBRD-86250	Loan Disb	2,581,032.20
Apr 9, 2021	IDA-58290	Loan Disb	377,475.12
Jul 21, 2021	IDA-58290	Loan Disb	2,500.00
Aug 19, 2021	IDA-58290	Loan Disb	16,700.00
Jun 15, 2024	IDA-58290	Loan Repay	110,994.69
Jun 15, 2024	IBRD-86250	Int Charges	250.30
Jun 15, 2024	IBRD-86250	Loan Repay	232,100.56
Jun 15, 2024	IBRD-86250	Int Charges	126.61
Jun 15, 2024	IDA-58290	Loan Repay	4,231.18
Jun 6, 2016	IDA-58290	Loan Commitment	7,420,000.00
Jun 6, 2016	IBRD-86250	Loan Commitment	12,580,000.00
Feb 27, 2024	IBRD-86250	Loan Disb	-95.65
Feb 27, 2024	IBRD-86250	Loan Disb	-922.89
Mar 4, 2024	IBRD-86250	Loan Disb	4,867.53
Jun 15, 2024	IBRD-86250	Int Charges	7.12
Jun 15, 2024	IDA-58290	Int Charges	23,592.49
Jun 15, 2024	IDA-58290	Int Charges	23,592.49
Jun 15, 2024	IDA-58290	Int Charges	39,147.93
Dec 15, 2023	IDA-58290	Loan Repay	2,820.10
Dec 15, 2023	IDA-58290	Loan Repay	114,431.99
Dec 15, 2023	IDA-58290	Int Charges	120.52
Dec 15, 2023	IBRD-86250	Int Charges	14,449.77
Dec 15, 2023	IBRD-86250	Loan Repay	236,291.12
Dec 15, 2023	IBRD-86250	Int Charges	512.79
Dec 15, 2023	IBRD-86250	Int Charges	236,291.12
Dec 15, 2023	IDA-58290	Int Charges	120.52
Dec 15, 2023	IDA-58290	Int Charges	24,225.46
Dec 15, 2023	IDA-58290	Int Charges	24,225.46
Dec 15, 2023	IDA-58290	Int Charges	36,382.27
Dec 15, 2023	IBRD-86250	Loan Repay	512.79
Nov 27, 2023	IBRD-86250	Loan Disb	59,151.60
Jun 15, 2023	IDA-58290	Loan Repay	51,088.50
Jun 15, 2023	IDA-58290	Int Charges	24,206.37
Jun 15, 2023	IDA-58290	Int Charges	24,206.37
Jun 15, 2023	IDA-58290	Int Charges	7,302.61
Jun 15, 2023	IDA-58290	Int Charges	40,343.92
Jul 17, 2023	IDA-58290	Loan Disb	153,186.42
Jun 15, 2023	IBRD-86250	Int Charges	755.90
Jun 15, 2023	IBRD-86250	Int Charges	178,691.10
Jun 15, 2023	IBRD-86250	Int Charges	755.90
Jun 15, 2023	IBRD-86250	Loan Repay	229,261.05
Jun 15, 2023	IDA-58290	Loan Repay	65,624.89
Jun 16, 2023	IBRD-86250	Loan Disb	57,484.23

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Project Management	Satisfactory	2023-06-30
Monitoring and Evaluation	Satisfactory	2023-06-30
Overall Implementation Progress (IP)	Satisfactory	2023-06-30
Progress towards achievement of PDO	Satisfactory	2023-06-30
Procurement	Satisfactory	2023-06-30
Financial Management	Satisfactory	2023-06-30

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 05-27-2024
Outcomes	Substantial
Risk to Development Outcome
Bank Performance	Substantial
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 11-15-2024	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Satisfactory	N/a
Risk To Development Outcome		N/a
Bank Performance	Moderately Satisfactory	N/a
Borrower Performance		N/a
Government Performance		N/a
Implementing Agency		N/a
Icr Quality	Substantial	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

PBC: Strengthened the capacity of the STS staff to deliver taxpayer services	Value	There is no a Manual on Taxpayer Services, the sta	The Manual is implemented and all eligible staff o	All eligible staff of the STS, located in all offi
	Date	December 31, 2018	November 30, 2023	December 31, 2020
	Comment

Maintained employment and business survival in the context of the COVID-19 pandemic, by temporarily providing tax relief (PBC 6)	Value	No government programs to support business continu	Fully achieved.	At least 75% of beneficiary firms that received su
	Date	April 1, 2020	November 30, 2023	February 1, 2021
	Comment

PBC: Introduced an Electronic Taxpayer Survey Tool	Value	No tool for taxpayers’ regular feedback is in plac	The e-taxpayer survey tool is in operational use	Evaluation report on Roll-out results for six mont
	Date	December 31, 2018	November 30, 2023	December 31, 2020
	Comment

PBC: Improved the usability of the STS website	Value	There are two websites available (one for informat	New STS website is used by taxpayers	Use of STS website by taxpayers within 1 month of
	Date	December 31, 2018	November 30, 2023	April 2, 2021
	Comment

Taxpayer satisfaction	Value	Legal entities -76.3% and Individuals – 69.2%.	Legal entities – 75.9%; Individuals – 71.1%. Satis	Legal entities – 83,9% and Individuals – 76,1%. Sa
	Date	December 31, 2018	November 30, 2023	December 31, 2021
	Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Decrease in tax arrears Value 8.50 3.86 6.48
Date January 2, 2017 November 30, 2023 December 30, 2022
Comment

Established legal frameworks and transparent mechanisms for implementing the temporary tax relief to businesses to mitigate for thenegative fiscal impact of the COVID-19 pandemic (PBC 7)	Value	Legal frameworks for mechanisms to sustain tax rev	Legal frameworks have been established. Report on	Report on VAT refund program covering payments mad
	Date	April 1, 2020	November 30, 2023	February 1, 2021
	Comment

Increased nominal value of the specific and minimal excise for all tobacco products under tariff position 240220 (PBC/DLI 1)	Value	Specific rates and minimum rates by types of tobac	Specific rates came into effect.	Increased specific rates came into effect (DLR 1.3
	Date	December 31, 2018	November 30, 2023	December 31, 2021
	Comment

The Training Distance Learning System for the most important workflows developed	Value	The list of training programs is not identified	All (12) identified distance learning courses to s	Training courses with topics and content of major
	Date	December 31, 2015	November 30, 2023	December 31, 2021
	Comment

Set foundation for future STS digital modernization strategy	Value	No evidence based analysis to inform future IT mod	IT Capability Gap Assessment is completed with the	Completion of IT Tax Gap Capability Assessment for
	Date	June 22, 2022	November 30, 2023	January 31, 2023
	Comment

Ensured that supplies of goods by insolvent subjects are taxed with VAT on the reverse charge principle (PBC/DLI 2)	Value	Due to the legal gap in provisions which stipulate	The adopted changes to the Tax Code came into effe	The Parliament adopted the Changes to the Tax Code
	Date	December 31, 2018	November 30, 2023	January 1, 2020
	Comment

Number of hits to the STS web-site Value 3570004.00 10400000.00 7100000.00
Date December 31, 2015 November 30, 2023 December 30, 2022
Comment

Decrease in tax arrears	Value	8.50	3.86	6.48
	Date	January 2, 2017	November 30, 2023	December 30, 2022
	Comment

Number of hits to the STS web-site	Value	3570004.00	10400000.00	7100000.00
	Date	December 31, 2015	November 30, 2023	December 30, 2022
	Comment