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 April 2010.

Entrepreneurship
1. The National Commission of Financial Market approved the Moldova Rules of National Depositor of Securities (in new edition). The National Depositor of Securities of Moldova is a professional participant of securities market, which renders services of book-keeping of depositors’ rights upon securities, of clearing conduction and enumeration of transactions carried out at the Stock Exchange. (Decision of the National Commission of Financial Market No. 11/10, as o March 19, 2010, Official Monitor of the Republic of Moldova No. 54-55 as of April 16, 2010).

2. The Ministry of Agriculture and Food Industry approved the Agreement in the area of planting, harvesting and processing of sugar beet and consumption of industrial sugar. The given agreement has the right to regulate equitably on national level the relations among sugar beet manufacturers, beet processors and beet consumers. (Order of the Ministry of Agriculture and Food Industry No. 32 as of February 24, 2010, Official Monitor of the Republic of Moldova No. 56-57 as of April 20, 2010). At the same time, it has been approved the list of laboratories, accredited by the European Union, who carried out analysis of beet origin (sugar beet and sugar cane) through the method of spectro-photometry. (Order of the Ministry of Agriculture and Food Industry No. 63 as of April 8, 2010, Official Monitor of the Republic of Moldova No. 56-67 as of April 20, 2010).

3. The National Commission of Financial Market approved the Instruction on reporting for the associations of savings and loans. The given instruction determines forms and rules of drafting and submitting specialized reports for savings and loans association. (Decision of the National Commission Financial Market No. 44/8 as of October 8, 2009, Official Monitor of the Republic of Moldova No. 56-67 as of April 20, 2010).

4. The Government carried out amendments in the Decision No. 519 as of May 20, 2004 “regarding Regulations on the mode of drafting and approval of the List of economic entities – enterprises engaged in light industries and of samples for services rendered by them on the territory of the Republic of Moldova to the requesters of placing goods under customs regime of active perfection, taxed with VAT at 0 share, and in regard to the administration of the services rendered to these companies”. The amendments regard the modality of drafting Lists of economic entities – companies engaged in light industries which render services on the territory of the Republic of Moldova to requesters of placing goods under customs regime of active perfection, and namely it has been specified in the given List is notified by the Ministry of Finance and, depending on the case, by other central public authorities, is approved by the Ministry of Economy and is published in the Official Monitor. Amendments in the List will be carried out through the order of the Ministry of Economy. (Decision of the Government No. 224 as of April 2, 2010, Official Monitor of the Republic of Moldova No. 51 as of April 9, 2010 ).

5. In connection with the reorganization of the Customs Service, there have been introduced amendments and completions in Annex 8 of the Order No. 346-O as of December 24, 2009 “Regarding approval of Technical Norms on printing, usage and completion of the customs declaration in details”. (Orders of the Customs Service No. 87-O as of March 13, 2010, No. 128-O as of April 7, 2010, Official Monitor of the Republic of Moldova No. 54-55 as of April 16, 2010).

6. The Ministry of Constructions and Regional Development in association with the Ministry of Finance issued the Informative-Normative Letter on the determination of construction objects’ value starting with May 1, 2010. The given letter follows to be applied by ministries, central administrative authorities, local public authorities, organizations, enterprises and other participants in the process of investments in constructions. (Letter of the ministry of Constructions and Regional Development No. 05-757 as of April 7, 2010, Official Monitor of the Republic of Moldova No. 51 “a” as of April 13, 2010).

7. The Ministry of Constructions and Regional Development approved the Appendix to the List of standards related to the Technical Regulation on construction products. (Order of the Ministry of Constructions and Regional Development No. 36 as of March 30, 2010, Official Monitor of the Republic of Moldova No. 52-53 as of April 14, 2010).

8. The Ministry of Agriculture and Food Industry approved the List of standards related to the Technical Regulation “Packaging, transportation and depositing of fruits, vegetables and fresh mushrooms”. (Order of the Ministry of Agriculture and Food Industry No. 50 as of March 31, 2010, Official Monitor of the Republic of Moldova No. 54-55 as of April 16, 2010).

9. In order to prevent the possible abuse of the dominating situation on the market of certain economic entities, their associations, holdings, transnational corporations and industrial-financial groups, the Administrative Council of the National Agency for Competition Protection was authorized to ensure public control upon the creation, expanstion of reorganization, liquidation of the mentioned entities. Thus, persons or authorities who decide to create, reorganize, liquidate economic entities and their association will provide to the Agency of an application for obtaining the consent of creating, reorganizing or liquidating the economic entity, as well as the documents containing necessary data for making decision. In regard to the mentioned things, the Agency approved the Notification Form on the creation, expansion, merging and liquidating associations for economic agents. The given notification must involve compulsorily: application, documents and information which are attached to the application and proof of paying the tax for application examination. (Decision of the National Agency for Competition Protection No. CCE-29 as of March 15, 2010, Official Monitor of the Republic of Moldova No. 64-65 as of April 30, 2010).

Tax legislation
1. The Government approved the Decision on the mode of applying of zero share for VAT for the delivery of goods, services on the territory of the country and of offering fiscal and customs facilities for technical assistance projects and unleashing investment projects, which are under international treaties which the Republic of Moldova is part of. Through the mentioned decision there have been approved:

• List of unleashing technical projects, which are under international treaties, for application of exemptions from income taxes, excise duties, customs taxes, as well as application of zero share for VAT for products and services that are destined to them;
• List of loans and grants, offered to the Government of the Republic of Moldova or offered with state warranty, at the expense of loans issued by international financial bodies (including at Government’s expenses), at the expense of grants issued by institutions financed by the budget, destined to realization of projects of investment assistance, at the expense of which goods (works, services) exempted from customs tax, tax for customs procedure conduction, taxed at 0 VAT share will be purchased;
• Regulation on the mode of applying o share for VAT at the shipping on the territory of the country of goods and services destined to technical assistance projects and projects of investment assistance;
• Regulation on the mode of applying income tax for resident individuals and legal entities engaged in realizing projects of technical assistance.

(Government Decision No. 246 as of April 8, 2010, Official Monitor of the Republic of Moldova No. 52-53 as of April 14, 2010).

2. There has been approved the sample application of primary document with special regime “Invoice” and the Instruction on mode of completing the Invoice. The Invoice follows to be drafted by entities for shipping assets and services that are not VAT-taxed in the following cases:

• expatriation of assets with the transfer of right for property;
• render of services and execution of works;transportation of assets within the entity disintegrated from territorial point of view, as well as outside of it without passing the right for property in case of transferring assets to processing, storage, expertise;
• transfer of assets to leasing, rent. The Invoice can be drafted in case of systematical shipping of assets and service taxed with VAT until the drafting of fiscal Invoice. Also, it follows to be drafted and issued to beneficiaries (buyers) - the citizens, at their request. (Order of the Ministry of Finance No. 47 as of March 31, 2010, Official Monitor of the Republic of Moldova No. 58-60 as of April 23, 2010).

3. In the view of improving the process of producing and using the “Documentary stamp. State Trade Mark” and “Documentary Stamp”, starting with April 1 2010 new types of documentary stamps will be applied. Sale of local goods and imported goods which were signed with “Documentary stamp. State documentary stamp” and “Documentary stamp” being unleashed starting with July 1, 2008 and, respectively, from April 1 2005 is going to be carried on until January 1, 2011. Introducing in the country the goods signed with “Documentary stamp. State Trade Mark” and “Documentary stamp” unleashed since July 1 2008 and, respectively, since April 1, 2005 is allowed only since in case when the export of these stamps destined to sign foreign producers’ goods as carried out until April 1 2010. (Government Decision No. 243 as of April 8, 2010, Official Monitor of the Republic of Moldova No. 52-53 as of April 14, 2010).

Audit and accounting
There have been carried out amendments and modifications in the Government Decision No. 1450 as of December 24, 2007 “on certain measures of executing the Law No. 61-Xvi as of March 16, 2007 on auditing activity”, which aimed to harmonize the national certification process and continuous professional training of auditors with the ones accepted in international practice, to modify the nominal constituent of the Council of auditing activity supervision and Commission of certification, as well as to exclude any content errors. Consequently, an additional demand regarding the admission of candidates for qualification exam is to know the mother language. In regard to continuous professional training, it was mentioned that it can be done by auditors by their participation in competitions organized by international institutions from this area. Also, in case of auditors’ participation in workshops, congresses or conferences from professional area, organized on both national and international levels, as well as in case of publication of a book, article in the area of audit, this activity will be equal to 4 hours and respectively 20 hours. These and other amendments in the mentioned Government Decision will be published in the Official Monitor of the Republic of Moldova No. 52-53 as of April 14, 2010. (Government Decision No. 238 as of April 7, 2010).

Regulations from various fields
1. There have been introduced amendments and modifications in the law No. 140-XV as of May 10, 2001 on Labour Inspection, thereby being regulated the mode, conditions and procedure in which public control is made and notifications regarding introduction in manufacturing of new sorts of prototypes of technical equipment and individual protection and labour equipment are issued. (Law 304-XVI as of December 25, 2008, Official Monitor of the Republic of Moldova No. 64-65 as of April 30, 2010).

2. It has been republished the Law on selection and reproduction in livestock sector. It sets the legal and economic base of organizing the selection and reproduction in the republic’s livestock sector, as well as regulates relations between the state, owners, possessors and beneficiaries of weeding resources. (Law No. 371-XIII as of February 15, 1995, Official Monitor of the Republic of Moldova No. 52-53 as of April 14, 2010).

3. It has been republished the Law on horticulture. The given law regulates general and special terms for producing and trading fruits and berries, gardening planting material, being directed to storage, development and growth of gardening and bearing berries, regardless of the type of property and legal-organizational form of household. (Law No. 728-XIII as of February 6, 1996, Official Monitor of the Republic of Moldova No. 52-53 as of April 14, 2010).

4. The Government approved the Sanitary-Veterinary Rules regarding livestock underproducts not destined to human consumption. The mentioned rules stipulate sanitary-veterinary demands against the collection, transportation, depositing, manipulation, processing, usage or removal of livestock underproducts not destined to human consumption, as well as their placement on market, aiming to reduce and dispose of any risks that they could represent for livestock and public health, inclusively, to prevent the apparition and spread of contagious animal diseases. (Government Decision no. 315 as of April 26, 2010, Official Monitor of the Republic of Moldova No. 64-65 as of April 30, 2010).