New mechanism for paying corporate income tax

The Committee on Economic Policy, Budget and Finance considered on October 17 a number of government legislations related to taxation. Thus, it is proposed to extend tax benefits defined in the law "On Corporate Income Tax" for a number of enterprises until 2025. These are sanatoriums and health centers, shoe and clothing enterprises, fruit and vegetable industry enterprises, and construction organizations engaged in housing construction.

These legislations propose to simplify the mechanism for calculating, paying and administering corporate income tax both on the part of taxpayers and on the part of the tax authorities of the republic. A package of 5 legislations was developed as part of the implementation of the Concept of Budget and Tax Policy and introduces a single tax payment, which involves paying income tax to the republican budget with one payment order of the taxpayer, as the head of the State Tax Service noted in the course of the meeting of the Parliamentary Committee on Economic Policy.

The current mechanism for calculating and splitting income tax is currently complex and labor-intensive, which causes many problems and misunderstandings among taxpayers, according to tax service. The splitting of the calculated amount of income tax is carried out in the established percentage ratio in the Unified State Social Insurance Fund, in the republican budget, in the Road Fund of the PMR, in local budgets, etc. The mechanism becomes more complicated if an enterprise or organization has branches, for example, they need to generate 15 payment orders to pay income tax. 

It is noted that if the organization has structural divisions, then the transfer of the income tax amount will be made only by the parent organization at its location. At the same time, the further direction of the income tax amounts received by the republican budget will be carried out in accordance with the provisions of the law on the republican budget for the relevant year. The tax service considers that the implementation of the proposed concept will help solve the difficulties that arise when splitting the income tax that taxpayers encounter. In connection with the change in the mechanism and the introduction of corresponding amendments to the law "On the income tax of organizations", changes will also be made to a number of related laws "On the Fundamentals of the Tax System in the PMR", "On Budget Classification in the PMR", "On State Benefits for Citizens with Children", "On the Unified State Social Insurance Fund of the PMR". 

Deputies of the Committee on Economic Policy, Budget and Finance asked the representatives of the Government questions of interest and decided to recommend that the Supreme Council of the Pridnestrovian Moldavian Republic consider a package of legislative initiatives on a new mechanism for paying corporate income tax in the first reading at a plenary session. 

Law-in-draft on amendments to the law "On the Fundamentals of the Tax System in the PMR" was considered in the first reading at the meeting of the Committee on Economic Policy, which proposes to extend until the end of 2025 the current measure of state support for economic entities of Pridnestrovie in the presence of negative consequences of external factors in the form of deferrals (installments) for the payment of taxes, fees and other payments to the budget for a period within the current financial year without charging interest on the amount of the deferral (installment) granted to them.