Taxes have a significant impact on the financial position of a business entity. In this case, not only the value of tax rates is important, but also such conditions as the timing of tax payment, the tax payment procedure, the availability of tax benefits, and others. Current economic conditions are characterized by the desire of any company to achieve high financial results. Profit, as the main financial indicator, is the priority goal of the company. At the same time, the economic result can be maximized both by increasing income and reducing expenses, which include the payment of mandatory payments to the budget and special funds. Therefore, the financial condition of the enterprise depends on the size of the tax burden. In addition to the direct impact of individual taxes on the financial position of enterprises, the tax system as a whole also affects the activities of business entities. One of the main disadvantages of the tax system of the Republic of Moldova is the frequent changes made to tax legislation, which impedes the process of planning business activities, and also creates the problem of lack of confidence in the duration of tax benefits. Despite the fact that in general the tax system of the Republic of Moldova is quite liberal in comparison with other countries, the tax collection system often has a negative impact on the financial position of enterprises, which, along with fairly open borders and strong competition from imported goods, leads to growth inhibition production and economic activity. Therefore, in our opinion, the state needs to ease the tax burden and simplify tax legislation for enterprises and support domestic producers in every possible way, including through the tax mechanism.
Chicu et al. (Sun,) studied this question.