The Amendments to Economic Laws in the Parliament Autumn Session. Part 1

The Supreme Council of the Pridnestrovian Moldavian Republic continued to work in the VIII session of the VII convocation on amendments and additions to the legislation related to the economic policy of the state. Amendments were made to the laws regulating the tax, customs, and budget spheres, as well as for the development of entrepreneurship and support of the republic's industry. The main laws in the economic sphere adopted by the Supreme Council in the autumn of 2024 are in the content of the parliamentary press service.

The Corporate Income tax Single Payment

The Supreme Council in the course of the autumn session adopted amendments to the tax legislation that simplify the mechanism for calculating, paying and administering corporate income tax. Thus, enterprises, organizations, and entrepreneurs pay income tax as a single tax payment to the republican budget – a single payment order from January 1, 2025. Parliamentarians amended 5 laws: "On Corporate Income Tax", "On the Fundamentals of the Tax System in the Pridnestrovian Moldavian Republic", "On the Budget Classification of the Pridnestrovian Moldavian Republic", "On State Benefits for Citizens with Children", "On the Unified State Social Insurance Fund of the Pridnestrovian Moldavian Republic".

The amendments to the tax legislation adopted during the autumn session are already the second step towards simplifying tax administration. Enterprises and organizations have been paying the single social tax as a single payment without the need to distribute the tax amount for the relevant purposes since 2024. A tax experiment has been conducted on paying environmental taxes and fees with one payment order since 2025.

Safety cushion for social payments in the 2025 republican budget

The Supreme Council of the Pridnestrovian Moldavian Republic adopted the law "On the republican budget for 2025" in the third and final reading on December 18. As part of the second reading, funding for a number of state target programs for 2025 was increased - for example, funding for the treatment of Pridnestrovians abroad (41.6 million rubles), a state program for the purchase of housing for orphans (about 18 million rubles). Funding for some state programs was reduced, since in practice, by the end of the year, there were unclaimed target funds. The same applies to the funding of target funds. For example, the size of the Road Fund has been increased from 274 to 285 million rubles, and the size of the Fund for Providing State Guarantees for Settlements with Citizens Entitled to a Land Share and Other Employees of Agricultural Enterprises has been increased by 22.8 million rubles (48.7 million rubles). The total amount of funding for target budget funds is more than 650 million rubles.

The revenues and expenditures of the 2025 budget were planned in accordance with the situation that existed at the time the law was adopted. It is necessary to find sources of funding for social programs and areas of the republican budget taking into consideration the introduction of a state of emergency in the economy and the new reality without sufficient gas supplies.

The speaker noted that reserves had been formed for the financial cushion: 10 million rubles in the Road Fund, almost 99 million rubles in the Capital Investment Fund, and about 17 million rubles in the healthcare sector from the provision of paid services.

Deputies of the Supreme Council of the Pridnestrovian Moldavian Republic emphasized that even in the conditions of limited financial resources, the ongoing budget deficit and the absence of additional sources to cover it, the 2025 budget will retain its social focus. Education, healthcare, social protection and guarantees for the population (including timely and full payment of wages, scholarships, pensions, benefits and other payments) remain priority social areas of the state. The law "On the Unified State Social Insurance Fund of the PMR for 2025" was adopted on December 18.

New law on measures to minimize the consequences of the gas crisis

The Supreme Council of the PMR adopted on December 26 a new law that defined state measures to minimize the negative consequences due to the possible cessation of gas supplies to Pridnestrovie in the context of the emergency economic situation and the impending energy crisis.

According to the new law, measures of state support for the population in the sphere of housing and communal services will be in effect: during the period of the special legal regime, penalties for non-payment of utilities will not be imposed, services consumed during the period of the special legal regime can be paid for until the end of the year. Unused social norms for beneficiaries will be transferred to another month. Permit documents that expire during the special legal regime will be automatically extended until the end of the special legal regime and for another 30 days after from January 1, 2025. The list of such documents is approved by a regulatory legal act of the Government. For example, these are licenses. They are given the opportunity not to provide statistical information and to shift the deadlines for submitting financial and tax reports to government agencies in the event that economic agents have to suspend their activities during the emergency period. Tax authorities can take measures to support economic entities in the form of a deferment (installment plan) in connection with the suspension of their activities or downtime.

The provisions of the Code of Administrative Offenses regarding violation of the law on silence have been suspended. It is specified that during the period of the emergency in the economy, administrative liability will not be applied for disturbing the peace and quiet of citizens due to the use of heating equipment and (or) electric generators. The PMR Government is vested with the authority to promptly manage and influence the situation related to the gas crisis.

The Law "On state measures aimed at minimizing the negative impact in connection with the introduction of a state of emergency economic associated with the reduction (termination) of natural gas supplies to the PMR" has been in effect since January 1, 2025.

Increase in reserve fund limits

A state of emergency was declared in Pridnestrovie due to the cessation or reduction of gas supplies on December 11. The Supreme Council of the PMR supported the President's initiative to increase the limits of the budget Reserve Funds of the head of state and the Government in order to promptly respond to negative situations in the economy.

The deputies increased the President's Reserve Fund by 2.4 million rubles, and the Government's Reserve Fund by 6 million rubles to promptly resolve unscheduled tasks and ensure stability in the conditions of the energy crisis. Additional funds were allocated among other things for the purchase of generators, the creation of fuel and lubricant reserves, the repair of socially significant facilities and preparation for the consequences of the current instability.

The Supreme Council granted the Government the authority with amendments to the law on the republican budget for 2024 to limit the adoption of new budgetary obligations and changes in accepted budgetary obligations by the main administrators of funds, as well as the financing of budget expenditures at various levels. This allows for the formation of a financial reserve for the fulfillment of social obligations.

The necessary measures of state support for enterprises have been extended for 2025

The Supreme Council has extended for another year a number of necessary measures of state support for enterprises, enshrined in the Customs Code and in the laws "On the Unified Social Tax and Mandatory Insurance Contribution" and "On Personal Income Tax".

The following have been extended by amendments to the Customs Code of the PMR for 2025:

– the validity of a temporary rule that reduces by half – from 0.3% to 0.15% – the rate of customs duties on the customs value of goods transported between Pridnestrovie and partner countries (the Russian Federation, the Republic of Belarus, the Republic of Kazakhstan and Ukraine), as well as goods transported by legal entities operating in a number of industries (light, metallurgical, chemical, electrical) with an indication of specific criteria;

- the possibility of extending the validity period of the customs procedure of temporary import for up to 5 years based on the application of the declarant; 

- the possibility of providing deferrals or installments for the payment of customs duties without charging interest.

The adopted package of legislations on amendments to the laws "On the Unified Social Tax and Mandatory Insurance Contribution" and "On Personal Income Tax" establish that if an employer, for reasons beyond his control, sends his enterprise into downtime, he will not have to pay a single social tax on payments to his employees. The amount of these payments at the same time should not exceed two-thirds of the salary. Employees who receive payments in connection with the downtime of the enterprise in turn are exempt from paying income tax. Another extended measure of state support concerns enterprises that have the opportunity to increase the wages of their employees. Thus, the increase in wages compared to the previous period will not be included in the taxable base.

Financing the healthcare system

The Supreme Council twice made amendments to the republican budget in the autumn of 2024, which were associated with an increase in the limits on financing the healthcare sector.

The parliament redistributed funds to a number of areas in September. Thus, the funding limits for the state order for the provision of consultative reception by specialists and diagnostic services for children were increased by 774 thousand rubles. The 2 million rubles allocated in the 2024 budget for these purposes were spent by the end of August – there were more children with allergies who need additional laboratory tests carried out only in private clinics. The funding limits for the provision of magnetic resonance imaging services were increased by 1.9 million rubles. This was due to the failure of computed tomography machines in several state institutions in the fall. The deputy corps allocated another 1 million rubles for equipment repair. An additional 3.4 million rubles were redirected to the treatment of patients outside the republic. The number of patients with acute coronary syndrome who need surgical treatment (coronary artery bypass grafting, balloon angioplasty, coronary stenting, laser myocardial revascularization, shock wave therapy) has increased, as explained to the deputy corps in the Ministry of Health.

The deputies of the Supreme Council of the PMR adopted amendments to the law on the republican budget for 2024, which increased the amount of financial resources for the program for the treatment and examination of citizens of Pridnestrovie abroad by 3 million 600 thousand rubles month later, in October 2024, at a plenary session. The Ministry of Health explained that additional funding is needed to send children and other categories of citizens for treatment outside the republic in cases where the necessary treatment cannot be provided on the territory of Pridnestrovie. This includes children and adults with cancer diagnoses, citizens with acute coronary syndrome, those who need hip replacement, etc. Almost 38 million rubles were allocated for this area in the republican budget for 2024, but the limits had already been exhausted by autumn.

Adjustment of planned indicators of the revenue and expenditure parts of the 2024 budget

The deputies of the Supreme Council adopted amendments to the republican budget, adjusting the planned indicators of the revenue and expenditure parts during the autumn session of the 7th convocation.

In particular, funding was redistributed in the Capital Investment Fund. More than 4 million rubles by the end of 2024 were allocated for the repair of an X-ray room in the Republican Clinical Hospital in Tiraspol (1 million rubles) and for work on the creation and improvement of the Yuzhny Park (3 million 257 thousand rubles).

The Share Fund was adjusted. Part of the funds were directed to the improvement of rural settlements, namely, the repair of road surfaces.

The procedure for crossing the border by vehicles with foreign license plates has been simplified

The Supreme Council has improved the procedure for temporary import of vehicles in a special manner with payment of a vignette fee. Changes have been made to the Customs Code of the PMR that simplify the procedure for crossing the border by vehicle with foreign license plates. Now, any person who imports a vehicle with foreign license plates and has a registration certificate (certificate of registration) will be able to complete the temporary import procedure in a special manner without presenting a power of attorney and legally travel across the territory of Pridnestrovie.

Extension of support measures

The Supreme Council has extended the measure of state support for economic entities of the Pridnestrovian Moldavian Republic until 2025, according to which enterprises experiencing difficulties due to the impact of negative external factors will be able to receive a deferment (installment plan) on tax payments to the republican or local budgets. The changes have been made to the law "On the Fundamentals of the Tax System in the Pridnestrovian Moldavian Republic ".

The benefit does not imply exemption from taxes, but only provides the opportunity to pay them later or in installments. This support measure has been in effect in Pridnestrovie since 2023.

Changes in the Capital Investment Fund and the Road Fund

The parliament made changes to the law on the republican budget, which made it possible to complete a number of social infrastructure projects under the Capital Investment Fund in 2024.

Funding limits were added to several objects. These are the building of the infectious diseases department of the Republican Clinical Hospital (10 million rubles), the Dnestrovskie Zori health complex (10 million rubles), and the city stadium in Dnestrovsk (260 thousand rubles).

The Supreme Council made changes to the budget of the Road Fund of the Pridnestrovian Moldavian Republic based on appeals from the heads of state administrations of Bendery, Grigoriopol, Rybnitsa and Kamensk districts. Additional funding from the PMR Road Fund was directed to the overhaul of the road along Lenin Street in Rybnitsa after the replacement of utility networks, to subsidies from the Grigoriopol state administration to eliminate emergency situations on the bypass road, and to finance the pre-project inspection of three automobile bridges.

Financial resources were redistributed under the state program for the purchase of housing for orphans. 1.9 million rubles allocated to Rybnitsa, due to the impossibility of purchasing housing for orphans there, were sent to Tiraspol and Dubossary.

Additional funding for road repairs and healthcare

In early December, as part of the VIII session of the VII convocation, the deputy corps again adopted amendments to the law "On the republican budget for 2024". Based on the results of 9 months of financial and economic activity, the deficit parameters, revenue and expenditure indicators of the republican and local budgets were adjusted. The Supreme Council redistributed funds in those areas that required completion in 2024.

In particular, additional subsidies were sent to the PMR Road Fund for:

– construction of a third traffic lane for heavy trucks at the Bendery-Chisinau customs check- point (about 2 million rubles);

– repair of the road surface on Suvorov and Komsomolskaya Streets in the village of Sukleya (1.7 million rubles);

– widening of Lenin Street in Tiraspol in the area of ​​the Yuzhny Park (890 thousand rubles);

– repair of the road surface at the Rybnitsa Bridge customs check-point (495 thousand rubles);

– repair and improvement of the sidewalk along Pionerskaya Street in Bendery (900 thousand rubles);

– reconstruction of paving along Protyagaylovskaya Street in Bendery (270 thousand rubles);

– elimination of emergency situations on the Grigoriopol - Karmanovo - Kolosovo - border of Ukraine road (50 thousand rubles).

Additional financial resources were also allocated for the state program to replace street lamps with LED ones (about 1.395 million rubles) and for the admission of children for diagnostics by specialists in private clinics in the Pridnestrovian Moldavian Republic (725 thousand rubles).

Pensions and social payments for January – December

A decision was made to calculate January pensions and social payments on December 26 and 27 due to the fact that the working days of budgetary organizations after the New Year holidays began on January 8. The deputies of the Supreme Council unanimously adopted on December 11 the corresponding law-in-draft of the President on introducing an amendment to the law "On the budget of the Unified State Social Insurance Fund of the PMR for 2024".

The payment for January came to all pensioners who have an open bank account at the end of December. Those Pridnestrovians who are given the payment in cash at the beginning of the month received their pension on December 26 and 27. The rest of the citizens received their pension in cash in January according to the route schedule.

Fundamentals of Entrepreneurship for Schoolchildren

The program for training in the basics of entrepreneurship for schoolchildren has been expanded. Not only 11th-grade students, but also 9th-10th-grade students can participate in it. The Supreme Council of the PMR adopted changes to the state target program "Support and Development of Entrepreneurship in the PMR" for 2023-2027 in the fall of 2024. Another innovation is the name of the course. It is not "Basics of Starting Your Own Business" for schoolchildren at present, but "Basics of Entrepreneurship". The project is being implemented by the Chamber of Commerce and Industry of the Pridnestrovian Moldavian Republic on its site.