State support measures for economic agents: new law adopted

The Supreme Council of the Pridnestrovian Moldavian Republic today at the plenary session adopted in the final reading a new law "On measures of state support for subjects of economic activity of the Pridnestrovian Moldavian Republic in connection with the consequences of external factors". The document establishes a number of measures that will help reduce the negative effects of external factors on the activities of enterprises and businesses. The law-in-draft was adopted at the plenary session on May 18 in the first reading. The Committee on Economic Policy, Budget and Finance finalized the bill and submitted 24 amendments to the Parliament within a week.

The Head of the relevant committee noted, that state support measures can be used by enterprises or business representatives that find themselves in a difficult financial situation or have already suspended work and sent employees to idle. Among the adopted norms there were the provision of installment plans for tax payments without accruing interest and the consolidation of the Government's powers to regulate the mechanism for providing appropriate measures. It also establishes the possibility of subsidized lending to economic entities for the purpose of replenishing working capital, provides for benefits for the unified social tax and income tax in the event of downtime of the organization for reasons beyond its control.

Victor Guzun thanked the members of the Government, the Union of Industrialists, Agrarians and Entrepreneurs of Pridnestrovie, everyone who sent their proposals for inclusion in the new law.

Anti-crisis measures to support economic agents can be divided into several areas.

In terms of tax policy:

1) granting deferrals (installment plans) for the payment of taxes, fees and other payments to the budget for a period within the current financial year without accruing interest on the amount of the deferral (installment plan) provided;

2) zeroing the interest rate of income tax and the unified social tax in respect of payments to employees performing work under civil law contracts concluded as of March 1, 2022), in an amount not exceeding two-thirds of the tariff rate, salary (official salary) established for the employee, or two thirds of the amount of remuneration specified in the civil law contract;

3) grant the right to apply a tax rate of 8 percent to the income of individuals received under employment contracts concluded with organizations providing information and computing services;

4) grant the right to legal entities to make an advance payment for the first, second and third quarters of 2022 in the amount of one fourth (for each quarter) of the amount of the fee for environmental pollution and the use of natural resources.

Support for small and medium business:

1) to grant the right to individual entrepreneurs applying a special tax regime - the patent taxation system, to sell goods according to samples and catalogs (including in the form of postal items (parcel trade), as well as through teleshops, telephone communications and computer networks in non-stationary trade facilities .

Financial measures to stimulate activity:

1) preferential loans for economic entities of the republic for the purpose of replenishing working capital;

2) a moratorium on initiating bankruptcy cases on applications submitted by creditors in respect of legal entities and citizens, including individual entrepreneurs, for a period of 6 (six) months;

In the field of customs policy:

1) the period of validity of the customs procedure for temporary importation may be extended by the customs authority for a longer period, but not more than 5 (five) years, based on the application of the declarant;

2) before the expiration of the customs procedure for temporary import established by the customs authority, this customs procedure may be terminated by placing temporarily imported goods under customs procedures applicable to foreign goods, with the exception of the customs procedure of customs transit, without actually exporting temporarily imported goods from the customs territory of the Pridnestrovian Moldavian Republic;

3) before the expiration of the period for which the vignette fee was paid, vehicles for personal use may be placed under the customs procedure for release for internal consumption, without the actual export of such vehicles from the customs territory of the Pridnestrovian Moldavian Republic;

4) the rate of customs fees for customs operations in respect of goods transported from/to the following countries: the Russian Federation, the Republic of Belarus, the Republic of Kazakhstan, Ukraine - is 0.15 percent of the customs value of goods.

Administrative relief:

1) measures of administrative responsibility for untimely provision, but not more than 10 (ten) days, of statistical information are not subject to application;

2) measures of administrative responsibility for late submission, but not more than 10 (ten) days, by organizations, regardless of the form of ownership and organizational and legal form of financial statements, declarations, are not subject to application; payment orders and other documents related to the calculation and payment of taxes and other obligatory payments to the budget.