Ecofin Audit Service

We continue to inform you about the news, amendments and modifications introduced in the legislation of the Republic of Moldova within December 2010.

Entrepreneurship
1. The participants involved in the market of medicines must take into consideration the fact that the Government modified the Regulation on the mode of price approving and registration by medicine manufacturers, approved by Government Decision No. 252 as of June 22, 2010. Thus, it was specified that the stocks of imported and or purchased and placed on the market until September 1, 2010, will be sold according to acquisition price with the adding of determined trade margin, while the stocks of medicines placed on the market after September 1, 2010, will be subject to valuation by economic entities at the price from the National Catalogue of Prices. Also, the Regulation includes modifications that relate to the mode of drafting documents related to approving and registration of prices by medicine manufacturers, presented by requester for being approved in the Ministry of Health. (Government Decision No. 1115 as of December 6, 2010, Official Monitor of the Republic of Moldova No. 241-246 as of December 10, 2010).

Tax legislation
2. There have been introduced amendments in Government Decision "on the mode of applying zero VAT share on the sale of goods, services on the territory of the country and providing of fiscal and customs facilities for the projects of technical assistance and investment in process, which come under the incidence of international agreements to which the Republic of Moldova is a part of" No. 264 as of April 8, 2010. The modifications particularly refer to the introduction of regulations on the mode of applying zero VAT share on the import of services destined to technical assistance project and investment assistance. (Regulation on the mode of applying zero VAT share on the sale on the territory of the country of the goods and services destined to technical assistance projects and investment assistance projects, as well as on the import of services destined to them). Also, there have been introduced corrections regarding the attestation of the income gained by individuals and legal residents engaged in the realization of technical assistance projects (Regulation on the mdoe of attesting the income gained by individuals and legal residents engaged in the realization of technical assistance projects) (Government Decision No. 1161 as of December 20, 2010, Official Monitor of the Republic of Moldova No. 252-253 as of December 21, 2010).

Labour legislation
3. The Government modified and completed a row of normative acts regulating waging, and namely:

• Government Decision on the waging of employees from the entities with financial autonomy No. 743 as of June 11, 2001. The introduced modifications stand for the concretization of advisable character of the tariff network for the workers from entities with financial autonomy, from the categories of waging and coefficients of multiplication for establishing salaries of positions for the personnel engaged in the units that don’t apply waging systems based on unique tariff network of waging. Also, the modification aims particularities of fixing salaries for employees from entities that apply tariff network and from the ones applying non-tariff waging systems, award offering, compensations for cessation of individual labour agreement etc. Among the introduced modifications it was specified that the leaders of public enterprises, enterprises with prevailing public capital and monopolist enterprises, named by the Government, which have debts against their employees, don’t have the right to raise position salaries until the debts are entirely paid out. These leaders, until the total paying out of debts, don’t have the right to receive awards, bonuses and other motivating payments. Also, it was specified that the maximal quantum of the award for economic-financial results to leaders of enterprises receiving donations from budget can not exceed 50% from the monthly salary. Leaders of insolvable enterprises receive the award providing that losses as against the same period of the previous year are reduced and its amount will not exceed 4.8 monthly position salaries.
• As a result of modification of the Government Decision on tariff salary for the 1st category of employees in entities with financial autonomy and quantum of compensation increase for the work realized in unfavourable conditions No. 152 as of February 19, it has been changed its name and were excluded a row of paragraphs, so that the mentioned Decision will regulate only the quantum of compensation increase for the work realized in unfavourable conditions.
• As a result of amendment introduced in Government Decision on the minimal guaranteed quantum in the real sector  No. 165 as of March 9, 2010, it has been decided that public enterprises, enterprises with prevailing public capital and monopolist companies, at which the quantum for tariff salary for the 1st category of qualification is bigger than the minimal guaranteed quantum of the salary in the real sector (1100 lei per month for a complete working program, except for the basic personnel engaged in agriculture and silviculture – 990 lei per month – and auxiliary personnel – 600 lei per month), can raise tariff salary for the first qualification category only to the extent of increase of production volume (works, services) in comparable prices as against the same period from the last year, providing the volume of sold production measured in effective prices grows, obtaining of benefit from selling production and production profitability. In case the consumption price index grows starting with the moment of previous raising of tariff salary for the 1st category exceeds the growing rate of production volume (works, services) in comparable prices, enterprise which holds necessary financial means has the right to raise tariff salary on the basis of consumption price index growth.

(Government Decision No. 1105 as of December 6, 2010, Official Monitor of the Republic of Moldova No. 241-246 as of December 10, 2010).

Banks and banking activity
4. There have been introduced amendments and modifications in the Lawe on financial institutions No. 550-XIII as of July 21, 1995 (republished in the Official Monitor of the Republic of Moldova, 2010, No. 110-113) (Law No. 241 as of September 24, 2010, Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010).

5. It has been modified article 4 of the Law on state budget No. 1216-XII as of December 3, 1992 (republished in the Official Monitor of the Republic of Moldova, 2004, No. 53-55). As a result of the introduced amendments, there were exempted from paying state tax in degrees of jurisdictions not only office administrators of the banks in the suits related to bank liquidation, but also their liquidators. Also, banks were exempted from paying the state tax at drafting notary acts: certification of sales agreements of the bank as a unique patrimonial complex, of assets transfer and transfer of banks’ bonds, concluded within special administration or during the bank liquidation process (Law No. 241 as of September 24, 2010, Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010).

6. There have been introduced modifications in Law on the guarantee of deposits for individuals in the banking systemNo. 575-XV as of December 26, 2003. As a result of the introduced modifications it has been determined that banks are obliged, within 90 days from the date of receiving license for financial activity, to deposit in the Fund of Depost Guarantee in the banking system a unique initial contribution of payment amounting to 0.1% of its initial capital. Dismissing the commitment of payment of contribution to the mentioned Fund will end up with incontestable charge from the bank account of the specified amount and application of fee for delay amounting to 1% of the owed amount. The Fund guarantees payment  of deposits that became unavailable in a licensed bank of every deponent, regardless of the number and amount of deposit or regardless of the currency it was formed with, the guarantee amount being 6000 Moldovan Lei. These and other modifications to the given law have been published in the Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010 (Law No. 241 as of September 24, 2010).

7. The Administration Board of the National Bank of Moldova introduced amendments in the Regulation on the regime of compulsory reserves, approved by the Decision of the National Bank of Moldova No. 85 as of April 15, 2004 (Decision of the National Bank of Moldova No. 227 as of November 18, 2010, Official Monitor of the Republic of Moldova No. 235-240 as of December 3, 2010).

8. It has been modified and completed the Regulation on the transactions in cash within the banks from the Republic of Moldova, approved by the Decision of the National Bank of Moldova No. 200 as of July 27, 2006 (Decision of the National Bank of Moldova No. 200 as of October 5, 2010, Official Mon itor of the Republic of Moldova No. 247-251 as of December 17, 2010).

9. The Regulation on the conditions and mode of performing currency operations was modified, approved by Decision of the National Bank of Moldova No. 8 as of January 8, 2010 (Decision of the National Bank of Moldova No. 223 as of November 4, 2010, Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010).

10. In the view of updating and improving accounting within banking system, the National Bank of Moldova issued the Decision on the modification and completing of the Plan of accounts of accounting in the licensed banks from the Republic of Moldova. The decision will come into effect on January 1, 2012, except for certain clauses, which came into force on January 1, 2011 (Decision of the National Bank of Moldova No. 193 as of September 30, 2010, Official Monitor of the Republic of Moldova No. 235-240 as of December 3, 2010).

11. The National Bank of Moldova decided to maintain:

• the basic rate applied on the main operations of currency policy for short-term on the level of 7% annually;
• the interest rate for overnight credits at the level of 10% annually;
• the interest rate for overnight deposits at the level of 4% annually;

(Decision of the National Bank of Moldova No. 236 as of November 25, 2010, Official Monitor of the Republic of Moldova No. 235-240 as of December 3, 2010).

Accounting and audit
12. The Ministry of Finance approved the Methodological indications regarding accounting particularities in non-profit organizations. The methodological indications cover all non-profit organizations registered according to the legislation of the Republic of Moldova, as well as cover their branches, representatives and other their structural subdivisions, with their office both on the territory of the country as well as abroad. (Order of the Ministry of Finance No. 158 as of December 6, 2010, Official Monitor of the Republic of Moldova No. 254-256 as of December 24, 2010).

Regulations in various fields
13. There have been declared unconstitutional the rights of the Centre for Combating Economic Crimes and Corruption, stipulated in article 7, line (1), letter (h) and letter (n) from the Law on the Centre for Combating Economic Crimes and Corruption No. 1104-XV as of June 6, 2002, which stipulates:

• cancellation of operations on accounts of the participants in entrepreneurial activity; confiscation of money means, goods, accounts receivable and other assets of the participants involved in entrepreneurial activity in case illegal activities were established, taxes weren’t paid; cessation of limited or suspicious operations.
• confiscation and/or taking out from participants involved in entrepreneurial activity of goods, including transport means, in case of absence, at the moment of transportation, storage or sale, documents confirming their legal origin or in case of storage of unregistered goods in accounting documents or their storage in places unknown to fiscal authorities.

Also, there have been declared unconstitutional the stipulations of article 8, line (1) and line (2) from the Law on preventing and controlling money laundering and terrorism financing No. 190-XVI as of July 26, 2007, which obliges reporting entities (financial institutions, lawyers, notaries, auditors etc.) to inform the Centre for Combating Economic Crimes and Corruption about any suspicious activity or transaction, about transactions the value of which exceeds the amount of 500 thousand lei (through one or more transaction within 30 days) (Decision of the Constitutional Court No. 27 as of November 25, 2010, Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010).

14. In the view of simplifying the mechanism of legal staying and documentation of foreigners requiring residence permit on the territory of the Republic of Moldova, the Government approved the Regulation on functioning of Unique Office for Foreigner’s Documentation. The Regulation establishes a unique procedure of accepting requesters’ application by their submission to the Unique Office for Foreigner’s Documentation (unique access point and mechanism allowing the requester to address to a unique public authority, which is obliged to ensure the coordination with other public authorities of observance by requester of normative acts in the matter of immigration, according to assigned power in this sense to the Ministry of Home Affairs, Ministry of Labour, Social Protection and Family and Ministry of Information Technologies and Communications) (Government Decision No. 1187 as of December 22, 2010, Official Monitor of the Republic of Moldova No. 259-263 as of December 31, 2010).

It has been republished the Law on road fund No. 720-XIII as of February 2, 1996 (Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010).

It has been republished the Law on bee keeping No. 70-XVI as of March 30, 2006 (Official Monitor of the Republic of Moldova No. 247-251 as of December 17, 2010).