Budget, Government support measures, work of entrepreneurs

Budget 2024

Budget 2024 remains socially oriented. The trend continues to finance primarily socially protected expenses. We are talking about wages, pensions, benefits and financial assistance.

The state is projected to receive 4% less revenue than in 2023 in 2024. Therefore, when preparing the law, some expenditure items were partially cut. However, despite the overall reduction in budget expenditures, social support measures are provided: compensation for benefits to utilities and communication services, state target programs in the field of healthcare and social protection, maintenance of orphanages and boarding schools, payments on Soviet deposits to citizens (phased indexation of the population’s deposits), purchasing housing for orphans, treatment of citizens outside Pridnestrovie.

Utility tariffs for the population also remain unchanged to maintain household incomes at the current year level.

Targeted budget funds and development programs will remain in place in 2024. The Capital Investment Fund, Road Fund, Entrepreneurship Development Fund, Youth Support Fund, Agriculture Support Fund, and Land Reclamation Complex Development Fund will continue their work in 2024.

The state will continue to subsidize part of the interest rates on preferential loans provided to organizations in priority industries within the framework of the Entrepreneurship Development Fund. Subsidies for milk will be paid to agricultural producers, and subsidies for the purchase of breeding cattle will also continue from the Agricultural Support Fund.

State support measures

The government proposed to amend the law “On the fundamentals of the tax system in the PMR”. Extend the measure of state support established by law in relation to business entities of the republic until December 31, 2024 inclusive and provide the right to grant deferments (installments) for the payment of taxes, fees and other payments to the budget in connection with the negative consequences of external factors for a period within the current financial year and do not charge interest on the amount of the deferment (installment plan) granted. It is separately stipulated that local authorities, which are subsidized, have the right to provide such benefits.

Changes to the law “On Corporate Income Tax” extended the support measures for business entities in force in 2023. Including allowing not to recalculate the tax base if for the reporting year sales income does not cover the cost of products, works, services sold or is at its level. The moratorium on the so-called “loss tax” in the republic has actually been in effect since 2016 (with the exception of 2018-2019). By decision of parliamentarians, the moratorium was extended for the next financial year.

The application of the 2% tax rate when calculating income tax for enterprises in the fruit and vegetable industry and the construction industry were resumed. The application of the coefficient of 1.05 when calculating income tax for enterprises in the clothing and footwear industry that use raw materials supplied by customers has been extended until 2024 because the situation in this sector remains difficult. The tax burden on revenue, despite the relative decrease compared to last year, continues to remain at a high level and amounts to about 18%.

The state will provide support to industrial and agricultural enterprises. If necessary, they will be able to extend the repayment period of the soft loan up to one year. The law on state support measures previously gave this right for up to 6 months and only to industrial enterprises. Preferential lending for enterprises has been operating in the republic for many years. This allows them among other things to purchase new equipment to modernize production. Applications to increase the repayment period of the soft loan can be submitted until September 1 of the next year, and coordinate this with the supervisory board of the State Reserve Fund.

Tax deduction after treatment outside the PMR

To take advantage of the social tax deduction after treatment outside the republic, you do not need to submit a referral from Pridnestrovian medical institutions. The Government's initiative was supported by parliament in two readings at once. New rules will make the process of obtaining a social tax deduction easier. You will need confirmed information about undergoing treatment or examination outside Pridnestrovie to provide a tax benefit. A complete list of documents can be obtained at your place of work or at the tax authorities. The law comes into force on the 1st of January.

Tax amnesty for individual entrepreneurs

If an individual entrepreneur uses a simplified taxation system and has violated the tax payment deadlines, he will be able to continue working under the simplified system in 2024. This applies to those who switched to the simplified tax system for the first time this year and paid taxes in full. Amendments to the law “On a special tax regime – simplified taxation system” were adopted by parliament. Until now if an entrepreneur was late in paying taxes, he lost the right to work under the “simplified” system, according to the law. More than 180 entrepreneurs committed such violations in 2023.

Another innovation concerns the process of termination and conclusion of contracts between an individual entrepreneur and an employee. Entrepreneurs can enter into new contracts, terminating old ones, in the current month. However, this rule applies if the entrepreneur using the simplified system has no more than 5 employees. The new regulations are aimed at supporting small businesses in the catering and retail sectors, which often face staff shortages.

Similar changes have been adopted in the patent taxation system: individual entrepreneurs and heads of peasant farms can also terminate current contracts and enter into new ones with new employees within a month, but provided that the total number of involved workers should not exceed 3 people.

Online trading

The rules for online trading are enshrined in the law. They clearly state the obligations of the seller and the rights of the buyer. The seller must provide information about the main properties of the product, country of origin, price and terms of purchase, as well as delivery, service life, expiration date and warranty at the request of the consumer, even before concluding a contract. The law stipulates the need to pre-agree the payment procedure. The buyer will have the right to exchange non-food products, refuse the purchase and return the money paid for it if there is a receipt. However, taking into account the fact that the goods were purchased online, even in the absence of a receipt or other document confirming the fact of purchase, the buyer will still have the opportunity to refer to other evidence of purchasing the goods from a specific seller.

Support for Pridnestrovian sanatoriums

The income tax benefit for Pridnestrovian sanatoriums has been extended for another year. Representatives of the sanatorium in Kamenka addressed deputies Alexander Korshunov and Galina Antyufeyeva with a request to extend state support measures. The Supreme Council supported the initiative. Deputies decided to extend the rule for establishing a reduction factor of 0.4 when calculating income tax for sanatorium and resort institutions for another year, until the end of 2024. This rule was first introduced in December 2020, in connection with the coronavirus, as one of the measures to support sanatoriums by the state.

Retention of specialists

The state will support highly qualified industrial specialists, starting from the new year, if the salary of a specialist in industry is not higher than 16.5 thousand rubles, you will not have to pay income tax on 2 thousand rubles. The tax was not paid by those whose salary did not exceed 10 thousand rubles until now. There are about 65 thousand such people in the republic. The amounts not subject to income tax and final salary will be adjusted slightly each month. It all depends on the cost of living.

The Supreme Council considers that partial exemption from income tax will increase the amount that specialists of industrial enterprises receive based on the results of their work for the month and prevent the outflow of personnel from the industrial sector of the republic.