Ecofin Audit Service

Kristina Gurulea.
Legal Department director "Ecofin-Audit-Service" Audit Firm, Master in Law.

Legislative news: "Fin-Consultant" Monitoring.
We continue to inform you about the news, amendments and modifications introduced in the legislation of the Republic of Moldova within March 2010.

Entrepreneurship
1. On the territory of Balti Municipality, the Free Economic Zone “Balti” was founded, for a 25-year term. In the view of providing guarantees to this free economic zone’s residents, it has been foreseen that in case any normative act which could worsen the conditions of the free zone residents’ activity in the matter concerning customs and fiscal questions are adopted, stipulated in the Law on Free Economic Zones No. 440-XV as of July 27 2001, residents are allowed, within 10 years since the date of coming into effect of similar normative acts, to follow the laws related to free economic ones that were in effect on the date of their registration in the free economic zone. (Law No. 26 as of March 4, 2010, Official Monitor of the Republic of Moldova No. 39-40 as of March 23. 2010).

2. There have been operated amendments and modification in the Regulation on rules of goods origin, approved by the Government Decision No. 1599 as of December 13, 2002. Through the mentioned amendments and modifications, the mode of detecting the origin of goods from the free economic zone. Thus, it has been stated that the goods with the origin from the free economic zone are considered the goods manufactured integrally under conditions of article 20 of the Law No. 1380-XIII as of November 20, 1997 on customs tariff, as well as the goods sufficiently manufactured in this area, providing they comply with one of the following exigencies:

• change of product item in the Nomenclature of Goods interferes, on the level of one of the first four signs;
• the cost of product declared for export exceeds the cost of goods introduced in the free economic area because of on over 35% rise in the share of own expenditures.

The document certifying the goods origin from the free economic zone is the Producer’s Declaration, which shall be provided to the customs body along with justifying documents, in advance or at the moment of customs declaration is submitted, according to which the goods produced on the territory of free economic zone are imported on the rest customs territory of the Republic of Moldova. The Producer’s Declaration will take legal effect only after being approved by the customs worker, who is responsible for goods origin certification and control and for its registration in the customs body. In case the producer’s declaration is rejected, the customs body will return it to the requester, together with a notice explaining the refuse in written form. Every manufacturer of goods which is also a free economic zone resident, at the import on the rest of customs territory of the Republic of Moldova of goods with the application of preferential tariffs, at least once a year will be subject to customs body’s control, in the view of confirming the production capacity and correctitude of determining the origin of products. (Government Decision No. 145 as of February 25 2010, Official Monitor of the Republic of Moldova No. 33 as of March 5, 2010).

3. There have been introduced amendments in the Regulation on the management of means for financing the system of normative documents in construction, approved through the Government Decision No. 1436 as of December 17, 2008. In the result of introduced amendments, it has been concretized that the information about the contributions for financing the system of normative documents in constructions follows to be drafted by investors or beneficiaries of constructions separately, for every object apart. It should be mentioned, according to the Law on Quality in Constructions No. 721-XIII as of February 2, 1996, investors or construction owners, regardless of the type of property, are obliged to get involved in the creation of means for drafting normative documents in constructions through allocating to the state budget contributions amounting to 0.5% of the investment volume in basic capital for the objectives that are not financed from the national public budget, but not more than 50 thousand lei per object. (Government Decision No. 144 as of February 2, 2010, Official Monitor of the Republic of Moldova No. 32 as of March 2, 2010).

4. It has been approved the Regulation on the mode of using means from the fund for subsidizing agricultural producers, the List of risks the insurance prime of which is subsidized from the state budget 2010: plant growing, gardening, viticulture and animal breading, as well as the List of agricultural crops and animal and bird species the insurance prime of which is subsidized from the state budget 2010. (Government Decision No. 167 as of March 9, Official Monitor of the Republic of Moldova No. 35 as of March 12, 2010).

5. The National Regulatory Agency for Electronic Communication and Information Technology of the Republic Moldova approved the Procedure of making over the licenses of using limited resources in the view of supplying public networks and/or electronic communication services. The mentioned procedure establishes the types of licenses for using limited resources in the view of supplying public networks and/or electronic communication services or, depending on the case, licenses for types of activity, technical licenses, which can be made over and the conditions of making them over with the observance of objectiveness and transparency principles. (The National Regulatory Agency for Electronic Communications and Information Technology No. 08 as of February 25, 2010, Official Monitor of the Republic of Moldova No. 35 as of March 12, 2010).

6. The Government approved the Technical Regulation “Table olive”. The mentioned technical regulation sets out the minimal quality requirements that need to be fulfilled by fruits from the varieties cultivated of the Olea Europea sativa Hoffg, Link, treated or processed correspondingly and which are grown for human consumption as table olives or which are subject to transformation, including re-packaging on the territory of the Republic of Moldova. The stipulations of the Technical Regulation come into effect on June 19, 2010. (Government Decision No. 180 as of March 12, 2010, Official Monitor of the Republic of Moldova No. 37-38 as of March 19, 2010).

7. The Government approved the Minimal Trade Requirements for seed potato. The given requirements regard the product stipulated in the Nomenclature of Goods of the Republic of Moldova listed on 0701 10 000 tariff position and doesn’t regard the seed potatoes produced in unlicensed individual households, as well as the transit seed potatoes, unless they don’t venture human health and the environment. The mentioned minimal requirements will come into effect on June 23, 2010. (Government Decision No. 189 as of March 17, 2010, Official Monitor of the Republic of Moldova No. 39-40 as of March 23, 2010).

8. It has been published the List standards related to the Technical Regulation “Meat products”, approved through the Government Decision No. 720 as of July 20, 2007, which set the attempts rules and methods. (Order of the Ministry of Agriculture and Food Industry No. 31 as of February 24, 2010, Official Monitor of the Republic of Moldova No. 34 as of March 9, 2010).

9. Also, the Ministry of Agriculture and Food Industry approved the list of standards related to the Technical Regulation “Grain products and macaroni foods”, which set out the attempts rules and methods and exigencies of placement, storage and transportation. (Order of the Ministry of Agriculture and Food Industry No. 44 as of March 19, 2010, Official Monitor of the Republic of Moldova No. 44-46 as of March 30, 2010).

10. The Ministry of Economy approved List of National Standards, on the basis of which, until the carrying into effect of the given technical regulations, conformity valuation and supervision of inland products as well as of the imported ones on local market will be conducted. The mentioned standards concern such products as: knitted or crocheted clothing and accessories, shoes, plates and dishes and other household items or domestic articles, hygiene and toile plastic articles. (Order of the Ministry of Economy No. 34 as of February 26, 2010, Official Monitor of the Republic of Moldova No. 41-43 as of March 26, 2010).

Tax legislation
1. In connection with the carrying into effect of the new editions of the article 93, clause 3-5 of the Tax Code, The National Core Tax Inspectorate drafted the Informative Message on certain aspects concerning VAT application, issue of tax invoices and mode of completing the Registers of purchases and sales in the provision of goods and services within commission agreements or confidential administration. (Informative Message of the National Core Tax Inspectorate No. (26-2/2-02/1/880) 15 as of February 18, 2010, Official Monitor of the Republic of Moldova No. 41-43 as of March 26, 2010).

2. The National Core Tax Inspectorate approved the sample application of the Statement on the tax for beautification of the settlements beside the border (frontier) zone which have customs offices (posts) of transition of the state border (TAL 10 Form) and the Instruction on the mode of completing and presenting it. TAL 10 Form follows to be submitted to the national territorial tax inspectorate starting with the tax period - 1st semester of 2010. We should mentioned the fact that the subjects to which the tax for beautification of the settlements beside the border (frontier) zone which have customs offices (posts) of transition of the state border are legal entities and individuals owning buses, microbuses, trucks, tractors with tow which enter or leave the Republic of Moldova. (Order of the National Core Tax Inspectorate No. 79 as of February 23, 2010, Official Monitor of the Republic of Moldova No. 32 as of March 2, 2010).

3. Also, it has been approved the sample application of the statement on tax for use of roads by motor-vehicles registered in the Republic of Moldova (TDF 10 Form) and the Instruction on the mode of completing and submitting it. The statement on tax for use of roads by motor-vehicles registered in the Republic of Moldova (TDF 10 Form) is submitted to the national territorial tax inspectorate with the account for fiscal period 2010. (Order of the National Core Tax Inspectorate No. 80 as of February 23, 2010, Official Monitor of the Republic of Moldova No. 32 as March 2, 2010).
4. In the view of conforming the statements with the amendments introduced in the Tax Code through the Law on the Republic of Moldova No. 108-XVIII as of December 17, 2009, The National Core Tax Inspectorate operated amendments in the following acts:

• The statement on tax on the use of local symbols (TAS 06 Form), approved through the Order of the National Core Tax Inspectorate No. 21 as of February 2, 2006.
• The instruction on the mode of drafting and submitting fiscal statements on local taxes foreseen by Title VII of the Tax Code, approved through the Order of the National Core Tax Inspectorate No. 79 as of April 28, 2006;
• The statement on tax for Commercial Placement (TPP-08) and the Instruction on completing it, approved through the Order of the National Core Tax Inspectorate No. 177 as of June 23, 2008;
• The statement on tax for parking (TPA 09 Form) and the Instruction of completing it, approved by the Order of the National Core Tax Inspectorate No. 22 as of January 31, 2009. (Order of the National Core Tax Inspectorate No. 81 as of February 23, 2010, Official Monitor of the Republic of Moldova No. 32 as of March 2, 2010).

Banks and banking activity
1. Taking into consideration the evolution of monetary and macroeconomic indicators, including inflation rate, the Management Board of the National Bank of Moldova decided:

• to increase the basic rate applied for the main short-term monetary operations from 6% to 7%;
• to increase the interest rate for overnight credits from 9% to 10% annually;
• to increase the interest rate for overnight deposits from 3% to 4% annually;
• to increase the basic rate for long-term credits (more than 5 years) from 6% to 7% annually;
• to maintain the compulsory reserve norm formed of the means attracted in Moldovan lei and non-convertible currency, as well as the compulsory reserve norm formed of hard currency, at the rate of 8% of the calculation base.

(Decision of the National Bank of Moldova No. 55 as of March 25, 2010, Official Monitor of the Republic of Moldova No. 44-46 as of March 30, 2010).

2. It has been approved the Regulation on the mode of issuing by the National Bank of Moldova of the consent for trading goods in foreign hard currency in duty-free shops. We should mention the fact that in order to receive from buyers hard currency as a payment for goods in duty-free shops placed in the international points of border transition, in the international airport or on the side of airliner on international courses, the legal entity which holds the license for duty-free shops, must obtain the given consent from the National Bank of Moldova. The mentioned Regulation, determines the mode of issuing by the National Bank of Moldova of the consent for the trade of goods in hard currency in duty-free shops, as well as the mode in which legal entities, the holders of duty-free shops, will provide reports to the National Bank of Moldova. (Decision of the National Bank of Moldova No. 49 as of March 11, 2010, Official Monitor of the Republic of Moldova No. 41-43 as of March 26, 2010).

3. The National Bank of Moldova approved the Regulation on the conditions and mode of performing currency operations. The mentioned regulation regulates the particularities in performing transactions by both resident and non-resident individuals, as well as by legal entities. This regulation’s stipulations come into effect on April 11, 2010. (Decision of the National Bank of Moldova No. 8 as of Janury 28 2010, Official Monitor of the Republic of Moldova No. 41-43 as of March 26, 2010).

4. There have been introduced amendments and modifications in the Regulation on the authorization of certain currency transactions by the National Bank of Moldova, approved through the Decision of the Management Board of the National Bank of Moldova No. 51 as of March 5, 2009, which regards particularly the requirements against authorizations for performing currency transactions by the National Bank of Moldova, as well as the actions that follow to be taken by licensed banks at the presentation of the given authorizations by residents. (Decision of the National Bank of Moldova No. 9 as of January 28, 2010, Official Monitor of the Republic of Moldova No. 41-43 as of March 26, 2010).

Tax legislation
1. On the basis of the Collective Convention (national level) No. 9 as of January 28, 2010, the Government issued the Decision on the guaranteed minimal quantum of salary in the exact sector, thorugh which it has been established that starting with February 1, 2010, the guaranteed minimal quantum of salary in the exact sector (enterprises, organizations, financially autonomous institutions, regardless of the type of property and form of legal organization) makes up 6.51 lei per hour or 1,100 lei per month, calculated for a full 169 hour program on average per month. To add more information, we should specify that the basic personnel from agricultural and silvicultural sector, the guaranteed minimal quantum of salary will be applied in the amount of 90% of the nominal size (5.86 lei per hour or 990 lei per month), while for auxiliary personnel from this sector the basic salary is fixed in the amount of at least 3.55 lei per hour or at least 600 lei per month, calculated fro a 169 hour program on average per month. The implementation of the minimal quantum of salary can take place gradually, depending on financial possibilities, but not later than May 1, 2010. (Government Decision No. 165 as of March 9, 2010, Official Monitor of the Republic of Moldova No. 35 as of March 12, 2010).

2. At the same time, there have been published the amendments and modifications introduced in the Collective Convention (branch level) for the years 2009-2010. The introduced amendments concern the fixation of tariff salary for the first category of qualification in agriculture, food and related branches emerging from the stipulations of the Government decision on the guaranteed minimal amount of the salary in the exact sector No. 165 as of March 9, 2010. (Official Monitor of the Republic of Moldova No. 44-46 as of March 30, 2010).

3. The Ministry of Labour, Social Protection and Family, in accordance with the stipulations of the law No. 278-XIV as of February 11, 1999 on the mode of recalculating the amount of compensation for the damages caused to employees as a result of deviations or other health damages during the execution of working duties, inform economic entities that, according to statistical data, the average month salary per country for 2009 makes up 2,747.6 lei. The mentioned amount of salary will be applied compulsorily in the recalculation of the amounts compensating the damage caused to citizens emerged from the loss of working capacity or appearance of a professional disease, starting with April 1, 2010. Subject to calculations are the amounts compensating the damages according to the Regulation for compensating the damages (set by enterprises, institutions, organizations) caused to workers and officials as a result of injury or damage to health received from the execution of their working duty and payments by economic entities (Official Monitor of the Republic of Moldova No. 37-38 as of March 19, 2010).

Regulations in various fields
1. The Ministry of Justice approved the model of special blank of strict evidence on which notary acts are drafted. Special blanks of strict evidence on which the notary acts, which are were previously approved, will be used until their full running out. In case of disappearance, damaging or destruction of special blanks of strict evidence, the persons who carry out notary activity will inform about this activity the Ministry of Justice monthly until the date of 10 of every following month. Damaged special blanks of strict evidence are subject to annual destruction, until February 1, or within 15 days since the date of notary activity cessation. (Order of the Ministry of Justice No. 90 as of March 9, 2010, Official Monitor of the Republic of Moldova No. 36 as of March 16, 2010).

2. As a result of the amendment of the article 10 of the law on the mode of introducing and exportation of goods on the territory of the Republic of Moldova by individuals No. 1569-XV as of December 20, 2002 and article 184/1 of the Customs Code, approved by the Law No. 1149-XIV as of July 20, 2000, the guarantee tax perceived at the customs when introducing cars in the country that are elder than 7 years was cancelled. Thus, resident individuals, when entering the territory of our country shall not pay the guarantee tax for temporary introduction of transport mean which is elder than 7 years. At the same time, the given motor transport means will have to be taken out of the territory of the Republic of Moldova within 180 days since the date of their entrance. (Law No. 56 as of March 25, 2010, Official Monitor of the Republic of Moldova No. 44-46 as of March 30, 2010).