The Laws that came into force on the 1st of January, 2023

Budget 2023

The law on the republican budget for 2023 came into force. More than 60% of all public expenditures are socially protected items. The main directions of the budget-2023: healthcare, education and social sphere. The law provides for a 12% increase in salaries in the healthcare and education system.

Financing of targeted budget funds will continue. These are the Capital Investment Fund, the Road Fund, the Environmental Fund, the Fund for Support and Development of Entrepreneurship, the Fund for Support of Agriculture and the Development of the Ameliorative Complex of the Republic, the Fund for the Execution of Voters' Orders.

The law on the budget of the Unified State Social Insurance Fund came into force together with the law on the budget-2023.

Tax policy

A new taxation system for individual entrepreneurs has been in effect since January 1. It is based on the principle of social justice: more income – more taxes. Amendments and additions were made to the laws "Special tax regime – simplified taxation system" and "Special tax regime – patent taxation system". Individual entrepreneurs pay a tax of 3% on their income. After meetings with entrepreneurs, some adjustments were made in the application of the tax reform. New changes give an entrepreneur the right to choose whether or not to pay with a bank card or using a QR code for example. It is forbidden to apply the simplified taxation system in the construction industry when performing work at facilities that are financed from the budgets of various levels.

The fixed agricultural tax has been abolished for farmers starting from the new year 2023. It has been operating in Pridnestrovie since 2004, replacing the land tax, the tax on the maintenance of housing stock and the unified agricultural tax. State support helped improve the work of agricultural enterprises. The share of the agro-industrial complex in GDP increased, and there was an increase in the export of agricultural products. The law on the Federal Tax Service was extended for another 6 years as there were still empty lands in 2014. The Federal Tax Service has not been in effect since January 1, but other state support has been preserved for farmers, in particular, tax preferences.

Citizens of Pridnestrovie who purchase housing using mortgage loans will no longer pay income tax on the amount of interest paid for them by the employer. The employer organization at the same time is exempted from paying a single social tax on the amount of interest paid for its employees on these loans. Appropriate additions to the laws “On personal income tax” and “On the Unified Social Tax and Compulsory Insurance Contribution” have been adopted.

Foreign citizens who buy primary housing in our republic do not pay a special tax from the new year: fee for the acquisition of real estate. Amendments were made to the law "On the fundamentals of the tax system in the PMR". This fee is paid by non-resident buyers in the amount not exceeding 10% of the amount of the real estate purchase and sale agreement upon state registration of ownership of it. The adopted changes, canceling the payment of the fee, will create favorable conditions for attracting investments from foreign individuals to the territory of Pridnestrovie and revive the real estate market in our republic.

Amendments to the Law “On Income Tax on Individuals” came into force. They allow reducing the income tax rate for seasonal workers hired by agricultural enterprises for harvesting. Income tax for seasonal workers employed in the agricultural sector and registered under a fixed-term employment contract can be reduced from 15% to 8% at the request of the employee.

State support measures

Designed to minimize the negative consequences for the socio-economic sphere of the republic the state support measures for enterprises will continue to take place in 2023. Benefited schoolchildren will be given food packages or compensation in the case of distance learning. These and other norms that were in force during the coronavirus quarantine period were revised and transferred to the law “On measures of state support for economic entities of the PMR in connection with the negative consequences of external factors”.

Reduced coefficient of 1.05 will be maintained for income taxation for enterprises in the footwear and clothing industry that process raw materials supplied by the customer next year. Deputies of the Supreme Council voted to extend the tax break at the 2022 level.

Social protection

Amendments to the law “On Social Protection of the Disabled” came into force on January 1. They relate to the provision of social support to people with disabilities from childhood of groups I and II after reaching the age of 18. Able-bodied but non-working parents or close relatives caring for them will receive a monthly compensation payment in the amount of 100 RU of the minimum wage (this is 970 rubles according to the current standards). This payment was stopped previously, after reaching the age of 18.

The state will allocate over 7.4 million rubles in 2023for the provision of free dental services to the population. 250 thousand of these – for preferential dental prosthetics for war invalids. If desired, they will be able to put dentures made of metal-ceramic. This expensive material was excluded in the law "On the social protection of war veterans" previously.

Amendments to the Law “On Insolvency (Bankruptcy)” came into force on January 1. They relate to payments to those who have received industrial injuries at now non-existing enterprises. According to the previous wording of the law, compensation was paid in the amount of 50% of the amount due (from 300 to 1500 rubles). Now the amount will be paid in full.

Non-working citizens who are paid the minimum amount of a pension by age and below are exempted from paying the performance fee. It is 5% of the recoverable amount or the value of the debtor's property. The norm was written into the law. It came into effect on the 1st of January.

State support for young families

Amendments to the law “On State Support for Young Families in Acquisition of Housing” have been adopted. It is clarified that a specialist who has not reached the age of 36 on the day of application can receive a state subsidy (according to the categories prescribed in the law). Young families, one of whose members is provided with housing of less than 12 square meters per person, will be eligible for a state subsidy in addition. The amendments added a new category – employees of municipal social service institutions. The concept of “young family” has been corrected in the law “On State Youth Policy” that now states that such a family is considered a family where one of the spouses has not reached 36 years of age. The adopted changes came into force on January 1.

The latest amendments to the law “On State Support for Young Families in Purchasing Housing” have expanded the list of categories of recipients. The following can also apply for a state subsidy in 2023:

- Employees of the subdivisions of the patrol militia service;

- employees of temporary detention facilities and escort units of administrative militia services;

- employees of duty guards and individual (military) fire posts of the unit in charge of preventing emergencies and eliminating the consequences of natural disasters;

- bailiffs;

- nurses working in state (municipal) special (correctional) educational organizations.

The cost of providing state subsidies for the purchase of housing is included in the republican budget for 2023 as part of the Youth Support Fund.

The sphere of education

State administrations of cities and districts should organize the delivery of children to schools and kindergartens in villages if the distance from the place of residence to the institution is more than 1 km. Amendments to the law "On Education" came into force on January 1. Pleasant norms in practice will create safe conditions for the movement of children to and from the place of education in rural areas. The delivery of children to schools and kindergartens was carried out until now in cases where the distance from the place of residence to the organization of education exceeded 3 km.

The changes, providing that students with intellectual disabilities who studied in adapted educational programs will be issued a certificate of education, come into force from the new year. This provision was not spelled out previously in the legislation.

New fines

Amendments to the Code of Administrative Offenses providing for fines for those who put cars closer than 1 meter from the ramp, entrance and stairs have been in force since December 29. Drivers should be more careful when choosing a parking spot so that traffic militia officers do not issue a fine of 10 minimum wages (184 rubles).

Import of medicines

The simplified mechanism for the import of medicines is extended for another year. The rule that allows importing into the republic only those medicines that are registered in the countries of the European Union or the CIS will not apply in 2023 either. The law was suspended in 2020 with the onset of the COVID-19 pandemic. In the current external conditions and on the basis of appeals from the Association of Pharmacists of Pridnestrovie, the Supreme Council decided to extend the term of the simplified mechanism. Imported medicines at the same time must be registered and certified in Pridnestrovie.

Product certification

One of the norms of the PMR Law "On Certification of Products and Services" that exempts product manufacturers from additional financial costs for 2023 has been extended. If the product manufacturer already has a certificate or declaration of conformity from the countries of Europe and the CIS, then it is not necessary to carry out mandatory certification in the PMR. The exception is medical and pharmaceutical products.

Forest code

Two trees must to be planted instead of one felled tree in Pridnestrovie now. The institute of compensatory gardening has been operating since January 1. Changes have been made to the Forest Code of the PMR. Double compensatory landscaping will be mandatory in settlements, parks, squares, arboretums, botanical gardens, groves, boulevards and agricultural land.