Changes to laws on special tax regimes

Deputies of the Supreme Council of the Pridnestrovian Moldavian Republic today adopted in the second final reading a package of legislations that introduce amendments and additions to the laws on special tax regimes – simplified and patent taxation systems. The Committee on Economic Policy, Budget and Finance prepared amendments to the legislations for the second reading, which were based on the questions and proposals of entrepreneurs. It is important that the concept of innovations is preserved: some entrepreneurs will switch to a simplified taxation system that is associated with a fair approach to taxation as mentioned earlier.

One of the amendments to the law on the simplified taxation system caused a lot of controversy both at the meeting of the Committee on Economy among the deputies and in the plenary hall during discussions by the entire deputies with members of the Government. Should the use of the simplified taxation system be prohibited for construction organizations working under contracts at the expense of budgets of various levels? The Committee on Economic Policy, Budget and Finance proposed to introduce this provision into the law on the simplified taxation system. The government and part of the parliamentarians insisted on banning all construction organizations from working on a “simplified” system.

Plenipotentiary Representative of the President of the Pridnestrovian Moldavian Republic in the Supreme Council Anastasia Kipyatkova put an end to the discussion. She emphasized that the current wording of the law that will come into force on January 1, 2023 prohibits all construction organizations from working on a “simplification” basis. The PMR President Vadim Krasnoselsky spoke out against such a norm.

The Deputies as a result voted for the amendment prepared by the Committee on Economic Policy. The author of the legislative initiative Alexander Korshunov explained in an interview with journalists that earlier construction organizations operating on a “simplified” basis or recruiting workers with patents could participate in tenders for construction work at Capital Investment Fund facilities for example. It was both dangerous and unfair in terms of the tax burden.

A package of legislations to amend the laws on simplified and patent taxation systems that will come into force on January 1, 2023, were adopted today in final reading and will soon be submitted for the PMR President signature.