Travel cashback not taxed

Parliamentarians voted in two readings for the initiative of the Government, which is proposed not to tax the income of organizations providing services in the domestic tourism market of Pridnestrovie, to exclude the payments received by tourists, cashback, from the taxation of income and unified social taxes and the mandatory insurance premium.

The Government proposed to make additions to three existing laws at once: “On the Unified Social Tax and Mandatory Insurance Contribution”, “On Corporate Income Tax” and “On Personal Income Tax”.

As Chairman of the relevant Committee on Economic Policy, Budget and Finance, Viktor Guzun noted, such a proposal is an innovation for our republic. This practice is used in many countries around the world and has already proven its effectiveness. Other parliamentarians agreed with this.

The package of legislations was adopted today in two readings at once at the suggestion of the Committee on Economic Policy, Budget and Finance. Refundable funds will be received by tourists and organizations involved in domestic tourism from the republican budget after the documents are signed by the PMR President. The funds for this purpose have already been allocated.

The tourists, who have purchased a tour, paid for a tour of Pridnestrovie lasting at least two days or booked a hotel for two nights or more will be able to count on tourist cashback. It will be possible to receive 20% of the cost of the excursion or the amount of the hotel reservation on the account. Up to half of the cost of the tour can be returned to the account. The maximum cashback amount is 1.5 thousand rubles.