Responding to industrialists’ requests

The President Vadim Krasnoselsky signed amendments to the law “On corporate income tax”, adopted earlier by the Supreme Council. The purpose of the law initiated by the President is state support of domestic industry and services. The law exempts in the current year from the payment of the so-called tax on losses of industrial enterprises and services, with the exception of retail organizations. This will be possible if, at the end of the year, the economic entity has a negative financial result. When revenues from sales of products do not cover costs, then the taxable base is determined at the cost level, taking into account 5% profitability. This is the essence of what is called a tax on losses in the economy.

In addition, the same legislative act exempts newly created organizations that are in the process of liquidation, as well as organizations whose income from sales of their own products, including work on the customer-supplied raw materials, does not constitute from income tax less than 70%.

The organizations of culture sphere and sports - organizations are subjects of innovation activity are also exempted from the tax on damages.

As it was noted in the law published on the President’s official website, this list also includes “organizations, in the structure of sales revenues of which revenues from sales of products, works, services at fixed prices (tariffs), with a maximum price level (tariffs), with a maximum level ( standard) profitability is at least 70% percent, ”as well as“ organizations whose revenue from sales of medicines and medical products at government-regulated prices is at least 70% ”.

Representatives of the Union of Industrialists, Agrarians and Entrepreneurs of Pridnestrovie, the business association “Bridge” requested the adoption of these measures by the state authorities.

These norms were extended to 2018 after the law was signed by the President and officially published.