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 January 2010.

Entrepreneurship
1. The legal entities carrying out their activities as insurance and/or reinsurance intermediaries must take into account that the National Commission of Financial Market has issued the Decision on the approval of form and content for insurance and/or reinsurance intermediaries specialized statements, which approved the following:

• form and content of the Register of subagents, personal personnel acting as intermediaries and brokerage assistance insurance and/or reinsurance assistants;
• form and content of Statement regarding the insurance and/or reinsurance intermediary’s basic activity;
• form and content of the Statement regarding the insurance and/or reinsurance intermediary’s activity through their personnel, brokerage assistants and/or subagents.

(Decision of the National Commission of Financial market No. 45/5 as of October 16, 2009, Official Monitor of the Republic of Moldova No. 197-200 as of December 31, 2009).

2. In the view of ensuring high level for human health security and consumers’ interest, at the same time making functional and efficient the internal market, the Government approved the Sanitary Regulation on New Food Products. New food products are the products introduced on food market which haven’t been used until the date of the mentioned Regulation’s coming into effect, for human consumption, considerably in the Republic of Moldova. According to mentioned Regulation, the individual or legal entity responsible for introducing a new product on internal market is obliged to address to the National Centre of Public Health for conducting a valuation expertise of the new food product and, in case of approval, to register it at the State Register of new food products. The new food product is approved and included in the mentioned Registered once it engages the following conditions:

• leaves no doubt about its safety for consumer’s health under normal consumption conditions;
• is not misleading consumer, neither through its appearance nor through foreseen way of using;
• is not different from the food products it follows to substitute, under no aspect that might be unfavourable for consumer in the matter of nutrition.

(Government Decision No. 925 as of December 31, 2009, Official Monitor of the Republic of Moldova No. 2-4 as of January 15, 2010).

3. It has been approved the Technical Regulation “Requirements against quality and trade with fresh fruits and vegetables”. The Technical Regulation sets up certain minimal requirements against the quality and trade with fresh fruits and vegetables, destined to human consumption. The given regulation comes into effect on July 19, 2010. (Government Decision No. 929 as of December 31, 2009, Official Monitor of the Republic of Moldova No. 5-7 as of January 19,2010)

4. There have been introduced amendments and modifications in the List of products from the regulated field, subject to compulsory conformity certification, approved by the Government Decision No. 1469 as of December 30, 2004. Thus, a row of tariff positions have been excluded from the list of products subject to certification. Also, it has been stated that the following are not subject to mandatory product conformity certification:

• “second-hand” products and the ones relating to humanitarian aid and technical assistance;
• products imported directly by manufacturers, serving as raw material or auxiliary material destined for further usage within technological process or are elements of technologic equipment;
• products destined for personal use;
• nonfood products, imported directly by the manufacturer as raw material, auxiliary material or components of the final products, produced at the foreign beneficiaries’ order in accordance with corresponding agreements and which are not destined for being placed on the market of the Republic of Moldova;
• products imported as exhibits, models, advertising material destined for carrying out exhibitions, trade fairs and other commercial actions.

(Government Decision No. 922 as of December 31, 2009, Official Monitor of the Republic of Moldova No. 2-4 as of January 15, 2010).

Tax legislation
1. There have been approved the sample application forms proving the residence and the income tax paid by non-residents of the Republic of Moldova, and namely:

• Sample-form Form 1-DTA-09 “Certificate of Residence in accordance with the Convention (Agreement) for avoiding double taxation”;
• Sample-form Form 2-DTA-09 “Application for receiving the certificate proving the payment of income tax in the Republic of Moldova, according to Convention (Agreement) for avoiding double taxation”;
• Sample-form Form 3-DTA-09 “Application for receiving the certificate proving the payment of income tax in the Republic of Moldova without the international treaty”;
• Sample-form Form 4-DTA-09 “Certificate proving the payment of income tax in the Republic of Moldova, according to the Convention (Agreement) on avoiding double taxation”;
• Sample-form Form 5-DTA-09 “Certificate proving the payment of income tax in the Republic of Moldova without the international treaty”;
• Sample-form Form 6-DTA-09 “Certificate proving the payment of income tax in the Republic of Moldova, according to the Convention (Agreement) for avoiding double taxation, , concerning foreign individuals holding permits of residence in the Republic of Moldova”;
• Sample-form Form 7-DTA-09 “Certificate proving the payment of income tax in the Republic of Moldova, according to the legislation in force, concerning foreign individuals holding permits of residence oin the Republic of Moldova”;
• Sample-form Form 8-DTA-09 “Application for returning the income tax withheld from the sources placed in the Republic of Moldova”. (Government Decision No. 9 as of January 19, 2010, Official monitor of the Republic of Moldova No. 11-12 as of January 26, 2010).

2. Also, the Government approved the Regulation on withholding of income tax from the salary and other payments made by the entrepreneur on behalf of employees and the samples approving withholding of income tax from the payment source:

• Statement of the income paid and income tax withheld from it;
• Notification about the salary and other payments made by the employer on behalf of employees and the income tax withheld from these payments;
• Notification about the payments made to residents from the income sources other than salary, and income tax withheld from these payments;
• Notification about the income tax withheld from income sources, other than salary, paid to non-residents;
• Information regarding the income calculated and paid on behalf of individuals (legal entities) and the income tax withheld from them;
• Employees’ application for applying for exemptions from income taxes withheld from the salary.

The mentioned Regulation, as well as the applications proving the withholding of income tax from the payment source follow to be used for the tax period starting with January 1, 2010. (Government Decision No. 10 as of January 19, 2010, Official Monitor of the Republic of Moldova No. 11-12 as of January 26, 2010).

Regulations in various fields
1. It has been published the Law on preventing and controlling information criminality. It regulates the prevention and controls: information transgression of the law; the arrangement of mutual assistance for preventing and controlling information criminality; protection and provision of assistance to suppliers of information systems and users; cooperation between public administrative authorities and non-governmental organizations and other civil society representatives within the activity of preventing and controlling information crimes; cooperation with other states, international and regional organizations authorized in this field. (Law No. 20-XVI as of February 3, 2009, Official monitor of the Republic of Moldova No. 11-12 as of January 26, 2010).

2. According to the Parliament Decision on the approval of the mode of using the means from the fund of agricultural producers, starting with January 1 2010, 300 million lei will be assigned to the management and administration of the Ministry of Agriculture and Food Industry, for being used with the following purposes:

• fostering commercial banks to credit agricultural producers;
• fostering mechanisms for insurance against agricultural risks;
• subsidizing investments in the production of vegetables on protected land (winter hothouses, solariums);
• stimulating investments in purchasing agricultural technology and equipment, as well as irrigating equipment;
• supporting the promotion and development of ecological agriculture;
• fostering investments for using and renovating technologies at livestock farms;
• fostering the purchasing of breeding cattle and maintaining its genetic fund;
• fostering investments in the development of post-harvesting and processing infrastructure.

(Parliament Decision No. 137-XVIII as of December 29, 2009, Official Monitor of the Republic of Moldova No. 197-200 as of December 31, 2009).

3. In the view of growing efficiency, effectiveness and durability of the external assistance provided to the Republic of Moldova by international organizations and donating countries, it has been approved the Regulation on institutional arrangement and mechanism of managing the external assistance provided to the Republic of Moldova by international organizations and donating countries. (Government Decision No. 12 as of January 19, 2010, Official Monitor of the Republic of Moldova No. 11-12 as of January 26, 2010).

4. As a result of the analysis on advertising spots within the radio broadcasts which are under the jurisdiction of Republic of Moldova, the Audio-Visual Coordinating Board stated that, during TV broadcast services, as well as during radio broadcast services, the majority of spots advertising alcoholic drinks are placed during maximal audience hours. Taking into account the fact that alcohol consumption growth is registered (according to statistical data), and taking into account the baneful effects of alcohol consumption upon the society and the fact that this is an issue of public interest, the Audio-Visual Coordinating Board forbade:

• any type of alcoholic drink commercials within radio broadcast services between 6:00 and 22:00;
• broadcast of alcohol advertising spots with the participation of teenagers;
• broadcast of promotional commercials and competitions that make reference to an alcoholic name or brand; within competitions, prizes sponsored by alcohol drink manufacturers can not be offered.
• sports broadcasts / rebroadcasts sponsored by alcoholic beverage manufacturers between 6:00 and 22:00; the broadcast can be made only between 22:00 and 6:00;
• broadcast of alcoholic drink commercials, which promotes violent behaviour and attitudes, anger or anti-social actions;
• Also, it was decided that alcoholic drinks commercials is ended with audio and visual note saying “Excessive alcohol consumption is harmful for health”.

(Decision of the Audio-Visual Coordinating Board No. 133 as of December 23, 2009, Official Monitor of the Republic of Moldova No. 13-14 as of January 29, 2010).
5. In the view of providing financial support for children who reached the age of 16, the Government decided that the citizens of the Republic of Moldova who reached the age of 16 will receive ID card free of charge at the first documentation. (Government Decision No. 844 as of December 18, 2009, Official Monitor of the Republic of Moldova No. 197-200 as of December 31, 2009).

6. In order to improve the mode of completing customs declaration in details and adjusting it to international standards, the Customs Service approved in a new edition the Technical Norms on the mode of issuing, using and completing customs declaration in details, which came into effect on January 1, 2010. At the same time, it has been determined that, detailed customs declarations forms in stock, will be used for corresponding operations until they are entirely used. (Order of the Customs Service No. 346-O as of December 24, 2009, Official Monitor of the Republic of Moldova No. 197-200 as of December 31, 2009).