State support measures remain after the coronavirus

The Committee for Economic Policy, Budget and Finance continues to work on incoming legislations. The parliamentarians at today's meeting discussed amendments to the laws on the extension of tax preferences for 2023 by organizations providing information and computing services. The PMR Government proposes to keep it until the end of next year the possibility of applying a reduced corporate income tax rate of 3% when taxing income from sales outside Pridnestrovie. The activities of organizations in the field of information and computing services have been supported by the state for a long period of time by providing tax benefits. The law-in-draft will be considered by parliamentarians in the second reading at one of the next plenary sessions, even before the New Year.

Also, the deputies of the Committee on Economic Policy at the suggestion of colleagues from the Government plan to cancel the law On state support measures in connection with the introduction of a state of emergency and (or) restrictive measures (quarantine) aimed to prevent the spread of coronavirus infection caused by a new type of COVID-19 virus in 2020-2022 in connection with the abolition of restrictive measures to prevent the spread of coronavirus infection. The parliamentarians propose to transfer part of the norms prescribed there to another document - the law "On measures of state support for economic entities of the Pridnestrovian Moldavian Republic in connection with the negative consequences of external factors." This will affect a number of norms in terms of state support in the field of taxation and social protection. The law-in-draft will avoid duplication of certain norms in the Pridnestrovian legislation. It will allow maintaining effective measures of state support in relation to economic entities of Pridnestrovie, designed to minimize the negative consequences for the socio-economic sphere of the republic.

The Committee on Economic Policy, together with representatives of the Government, plans to maintain in the field of tax policy the provision of a deferral (installment plan) for the payment of taxes, fees and other payments to the budget for a period within the current financial year without accruing interest on the amount of the deferment granted. To establish a 0% rate for the unified social tax in respect of payments for downtime for reasons beyond the control of the employer and employee, including under civil law contracts. This law-in-draft will reflect measures of state support in the field of labor and civil law relations, customs regulation, in the field of investment policy and trade, statistical and financial reporting and in the field of state regulation of prices (tariffs) and public procurement.

The draft law proposes to extend the application of these norms throughout 2023due to the ongoing negative impact of the external economic situation.

With regard to providing support to the industrial sector of the economy, the work of the largest industrial energy-intensive industries and other representatives of the industrial sector of the economy was suspended due to the introduction of a state of emergency in the territory of the republic at the end of October against the backdrop of severe restrictions on natural gas supplies. It is proposed therefore to grant the right to change the maturity of the loan body for a period of not more than 6 months for preferential loans for investment purposes. This will reduce the pressure on the financial condition of industrial enterprises, including reallocating the released financial resources to support current economic activities. The issue of extending the loan will be declarative in nature.

The Committee on Economic Policy, Budget and Finance will submit all legislations to the next plenary sessions for consideration and adoption in the second reading.