Results of the The VI convocation: development of entrepreneurship and industry

Development and support of entrepreneurship is one of the policy priorities of the state authorities of our republic. The Supreme Council of the VI convocation adopted the state target program "Support and development of entrepreneurship in the PMR for 2019-2021". The goal of the Program is to develop entrepreneurship as one of the factors ensuring a consistently high level of employment and economic growth.

The program involves increasing the efficiency of state support for small businesses, creating new jobs, increasing the volume of sales and production of goods, works and services. In addition, the program is aimed at developing an education system that allows citizens and organizations to create and develop their own business, curb migration, form a middle class of the population, and increase business activity in the state.

In fact, this is a whole range of measures to improve state regulation of entrepreneurial activity and create comfortable conditions for interaction between business and government bodies. The entrepreneurship development program assumes optimization of the taxation system, improvement of document flow principles, optimization of tariff policy, simplification of foreign economic activity, as well as assistance in the development of investment and innovation activities in Pridnestrovie.

The Supreme Council of the VI convocation adopted a package of legislations designed to increase the level of investment attractiveness of Pridnestrovie. Experts in the field of investment policy, including foreign experts, recognize these decisions as unprecedented. The taxable base for the tax on the income of organizations was reduced, preferential rates of the single social tax were established, privileges on land payments were introduced, investment subsidies were provided. In fact, a comprehensive legal mechanism was created in Pridnestrovie to attract investment investments into the economy of the republic by legislative consolidation of unprecedented preferences.

Three regimes of taxation of entrepreneurs

The Supreme Council of the VI convocation reformed the taxation system for individual entrepreneurs. The goal set by the deputies is to equalize the tax burden on small businesses and structure the institution of individual entrepreneurship.

Entrepreneurs now independently choose which tax regime is most optimal for them. They can work under a patent, a simplified taxation system, or operate as a self-employed person. At the same time, a self-employed entrepreneur does not pay income tax, but only pays social payments: a unified social tax and a mandatory insurance premium. The new tax regime allowed many entrepreneurs to legalize their activities, having received social guarantees from the state.

Those entrepreneurs who have switched to a patent or simplified taxation system pay income tax of 3%. Under the patent system, the tax is levied on imputed income, under the simplified system - on the entrepreneur's real turnover. In both cases, individual entrepreneurs can carry out external economic activities and hire workers. In connection with the adoption of new taxation for entrepreneurs, the republican budget revenues from this type of activity have significantly increased.

The Supreme Council of the VI convocation adopted a state target program for the support and development of tourism in the PMR for 2019-2026. The program was developed with the aim of creating a modern, competitive tourism industry, focused on the fullest possible satisfaction of the needs of our citizens and citizens of foreign countries in the services of domestic and inbound tourism. This presupposes the effective implementation of the tourism potential of our republic using modern management.

By the decision of the Supreme Council, the list of documents required when submitting an application to the State Reserve Fund was reduced. Now it will be easier to get an interest-free loan for personal subsidiary farm development. When making an application, you do not need to submit a certificate of family composition, an extract from the house book and a number of other documents.

State support measures during the state of emergency and quarantine restrictions

Unprecedented measures of state support were adopted by the Supreme Council in 2020 in connection with the introduction of a state of emergency in the republic. Due to quarantine measures, the incomes of many enterprises of the republic and Pridnestrovians who are engaged in their own business have sharply decreased. In this regard, the parliamentary corps adopted the law "On state support during the state of emergency in 2020", which provides for the support of both economic agents and citizens.

For those who worked in enterprises that fell under the decree on the state of emergency, a zero rate was established on income tax. It was decided that in case of late payment of utility bills, no penalties will be charged. And enterprises that provide services will not disconnect the consumer from this service due to late payment. Poor citizens, whose children received free meals at school and kindergarten, were able to receive food packages.

Individual entrepreneurs suffered the most from the introduction of the state of emergency. These are small businesses that operate in the service and trade sectors. They were forced to suspend their work in connection with the decisions made by the state.

All payments for the patent to individual entrepreneurs were recalculated. Individual entrepreneurs who were affected by the state of emergency were able to apply to the employment center for registration and receive unemployment benefits in the amount of 1,647 rubles (in the amount of 1 minimum wage) per month.

Small businesses of up to 50 people, whose operations were suspended, were able to apply for a government subsidy. The state has taken over half of the minimum wage that small and medium-sized businesses will pay to their employees, thus reducing the tax burden so that enterprises can keep their work collectives and pay people wages. Commercial banks were able to issue loans to pay salaries. The state has undertaken to subsidize the interest rate to commercial banks in the amount of 10%.

Large economic agents, which previously used state support in the form of obtaining preferential subsidized loans aimed at the development of production, were able to obtain a deferral for the payment of interest and the main body of the loan.

For transport companies, the income tax rate was reduced to 2%. Light industry enterprises that operate on tolling raw materials have been reduced the rate of income tax on a tolling scheme with a coefficient of 1.05.

The deadlines for submitting tax or statistical reports have been extended. Economic agents are exempt from tax on losses at the end of 2020. For the period of the emergency, control measures were canceled - both planned and unplanned.

State support measures during the state of emergency and quarantine restrictions

Unprecedented measures of state support were adopted by the Supreme Council in 2020 in connection with the introduction of state of emergency in the republic. Due to quarantine measures, the incomes of many enterprises of the republic and Pridnestrovians who are engaged in their own business have sharply decreased. In this regard, the parliamentary corps adopted the law "On state support during the state of emergency in 2020", which provides for the support of both economic agents and citizens.

For those who worked in enterprises that fell under the decree on the state of emergency, a zero rate was established on income tax. It was decided that in case of late payment of utility bills, no penalties will be charged. Enterprises that provide services will not disconnect the consumer from this service due to late payment. Poor citizens, whose children received free meals at school and kindergarten, were able to receive food packages.

Individual entrepreneurs suffered the most from the introduction of the state of emergency. These are small businesses that operate in the service and trade sectors. They were forced to suspend their work in connection with the decisions made by the state.

All payments for the patent to individual entrepreneurs were recalculated. Individual entrepreneurs who were affected by the state of emergency were able to apply to the employment center for registration and receive unemployment benefits in the amount of 1,647 rubles (in the amount of 1 minimum wage) per month.

Small businesses of up to 50 people, whose operations were suspended, were able to apply for a government subsidy. The state has taken over half of the minimum wage that small and medium-sized businesses will pay to their employees, thus reducing the tax burden so that enterprises can keep their work collectives and pay people wages. Commercial banks were able to issue loans to pay salaries. The state has undertaken to subsidize the interest rate to commercial banks in the amount of 10%.

Large economic agents that previously used state support in the form of obtaining preferential subsidized loans aimed at the development of production, were able to obtain a deferral for the payment of interest and the main body of the loan.

For transport companies, the income tax rate was reduced to 2%. Light industry enterprises that operate on tolling raw materials have been reduced the rate of income tax on a tolling scheme with a coefficient of 1,05.

The deadlines for submitting tax or statistical reports have been extended. Economic agents are exempt from tax on losses at the end of 2020. Control measures were canceled - both planned and unplanned for the period of the emergency.