Ecofin Audit Service

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 November 2010.

Fiscal Legislation
1. It has been approved in new edition the Regulation on the Restitution of Value Added Tax. According to the Regulation, the Decision of restituting VAT will be adopted not by the commission created in this context, but by the chief (deputy chief) of the territorial tax inspectorate at the place of tax-payer’s servicing or by the chief (deputy chief) of the National Core Tax Inspectorate, in case of VAT restitution by the tax-payers serviced by the Direction of big tax-payers. Thus, it has been dissolved both territorial commissions on the restitution of VAT, as well as the Republican Commission on the examination of distortion between the taxed subjects and national territorial tax inspectorates in the matter concerning VAT restitution. Also, there have been introduced changes in the documents with the destination of being presented for inspection for confirming the right for VAT restitution from the budget. There have been introduced stipulations that regulate VAT restitutions related to processing services rendered on the territory of the Republic of Moldova by the companies from light industry to the requester of placing the goods under customs regime of active improvement. The mentioned regulation of VAT restitution is applied on the cases of VAT restitution, regardless of the date of submission of application of VAT restitution by the tax-payer requester. (Government Decision No. 1024 as of November 1, 2010, Official Monitor of the Republic of Moldova No. 214-220 as of November 5, 2010).

2. There have been introduced modifications in the Regulation on excise-tax duties, approved by Government Decision No. 1123 as of September 28, 2006. thus, there have been exhaustively enumerated the documents that follows to be presented for restituting the VAT amount paid for the goods subject to excise-tax, used for processing and/or manufacturing goods subject to excise-tax, supplied to duty-free shops, except for imported cigarettes with filter, and/or with free economic areas. (Government Decision No. 1069 as of November 12, 2010, Official Monitor of the Republic of Moldova No. 227-230 as of November 19, 2010).

3. In the view of bringing the stipulations from Government Decision No. 77 as of January 30, 2008 in accordance with the stipulations from the Tax Code, there have been introduced modifications and amendments in the following regulations: Regulation on the determination of fiscal duties related to income tax; Regulation on the determination of fiscal duties related to the income tax of individuals who don’t practice entrepreneurial activity. The regulation on withholding of income tax at the source of payment from other payments but the salary. (Government Decision No. 1022 as of October 29, 2010, Official Monitor of the Republic of Moldova No. 214-220 as of November 5, 2010).

4. In the view of executing the stipulations of article 103, line (7) of the Tax Code, it is defined that VAT is not applied on raw material, overall spread material, accessories necessary for production, imported by the blind’s organizations and enterprises, societies of deaf and societies of disabled, the Government approved the List of organizations and enterprises of the blind’s societies’ enterprises, societies of deaf and societies of disabled, on which the above benefits are applied. (Government Decision No. 1085 as of November 22, 2010, Official Monitor of the Republic of Moldova No. 231-234 as of November 26, 2010).

5. It has been amended the List of projects of unleashing technical assistance, which are under international treaties, for the application of exemptions of income tax, excise-tax, customs tax, as well as application of zero VAT rate on goods and services destined to it, approved by Government Decision No. 246 as of April 8, 2010. (Government Decision No. 1045 as of November 8, 2010, Official Monitor of the Republic of Moldova No. 221-222 as of November 9, 2010).

6. Also, it has been amended the List of economic entities – enterprises from light industry – and types of services rendered by them on the territory of the Republic of Moldova to the requesters of placing the goods under customs regime of active improvement, taxed with zero VAT share,approved by the Order of the Ministry of Economy No. 66 as of May 4, 2010. (Order of the Ministry of Economy No. 199 as of November 16, 2010, Official Monitor of the Republic of Moldova No. 227-230 as of November 19, 2010).

Accounting and audit
1. The Ministry of Finance approved the Methodical Indicators regarding the mode of insuring audit risk.Methodical indicators are expanding upon audit societies, auditors of individual entrepreneurs which carry out audit activity on the territory of the Republic of Moldova. The objective of insuring the risk of audit consists in insuring the liability of audit society, to the auditor of individual enterprise for the prejudice caused to the audited entity, requester of audit as a result of expressing by the auditor of an inadequate opinion of audit, in case when financial reports contain significant denaturizing. The mode of insuring audit risk is chosen by audit society, the individual auditor-entrepreneur: either it is insurance agreement of professional civic responsibility, or these are provisions not less than 15% of the income of sales of the management year related to financial audit reports. (Order of the Ministry of Finance No. 149 as of November 22, 2010, Official Monitor of the Republic Moldova No. 231-234 as of November 26, 2010).

2. Starting with November 26, 2010, there have been applied the Norms of professional training of probationers within audit activity. The stipulations of Norms are covering individuals-probationers, employees for probation within an audit society, auditor individual entrepreneur, which participate in the execution of audit under the management of an auditor. The norms determine against the probationer, period of probation, procedure of registration with probation, mode of accounting probationers in the activity of audit etc. (Order of the Ministry of Finance No. 150 as of November 22, 2010, Official Monitor of the Republic of Moldova No. 231-234 as of November 26, 2010).

Banks and banking activity
1. The National Bank of Moldova approved the Regulation on the activity of banks within international system of money transfer. Stipulations from the mentioned Regulation relate to the banks involved in international money transfer system through which money to/from abroad are transferred by/to individuals from the Republic of Moldova and are applicable starting with June 1, 2011. (Decision of the National Bank of Moldova No. 204 as of October 15, 2010, Official Monitor of the Republic of Moldova No. 231-234 as of November 26, 2010).

2. Also, it has been approved the Regulation on currency swap transactions between the ction by the National Bank of Moldova and banks.Swap currency transactions is the transaction involving simultaneously two operations of currency exchange of the National Bank of Moldova with the same bank, and namely – operation of buying (selling) spot transactions by the National Bank Moldova and, simultaneously, selling operation (buying) on time term (forward transaction) by the National Bank of Moldova of identical amounts of a foreign currency against the national currency with different dates of currency and with application of spot and forward currency rates (difference is expressed in swap points), which are determined at the date when swap currency transaction ends up. Foreign currencies that can be transferred within swap currency transactions between the National Bank of Moldova and banks are USD and Euro. (Decision of the National Bank of Moldova No. 196 as of September 30, 2010, Official Monitor of the Republic of Moldova 231-234 as of November 26, 2010).

3. The National Bank of Moldova decided to maintain:

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

(Decision of the National Bank of Moldova No. 215 as of October 28, 2010, Official Monitor of the Republic of Moldova No. 214-220).

4. The fund guarantees deposits in banking system approved the amount of percentage rate applied on calculation of compulsory flow for the year 2011 in the amount of 0.0664% of the total amount of guaranteed deposits registered in the balance of each licensed bank at the date of September 30, 2010. The licensed banks follow to make necessary calculations reasoning from the total amount of guaranteed deposits, registered in their balance at the date of September 30, 2010, and pay the compulsory annual flow until the date of December 31, 2010.
(Decision of the Fund of deposit guarantee in the banking system No. 114/2 as of October 28, 2010, Official Monitor of the Republic of Moldova No. 214-220 as of November 5, 2010).

Regulation from various fields
1. It has been republished Code of Execution of the Republic of Moldova No. 443-XV as of December 24, 2004. (Official Monitor of the Republic of Moldova No. 214-220 as of November 5, 2010).

2. The Ministry of Internal Affairs approved the Instruction on the order of issuance of legal acts. The instruction regulates order of receiving, registering, examining and accounting the applications on the issuance of legal acts and issued legal acts. Basing on the mentioned Instruction, information is contained in the notes with criminogenic content, including within the Bank of inter-governmental data of member-countries of the CIS, under such legal acts as:

• certificate of criminal record, for practicing entrepreneurial activity;
• certificate of criminal record, for individuals and legal entities;
• certificate about the transport unit in search;
• certificate confirming the search of a person or transport unit abroad;
• certificate confirming the verification of legal entity abroad.

(Order of the Ministry of Internal Affairs No. 372 as November 12, 2010, Official Monitor of the Republic of Moldova No. 227-230 as of November 19, 2010).

3. In the view of efficiently regulate the mode of representing the state in commercial societies, with public and public-private capital, the Government approved the Regulation on representing the state in commercial societies.The Regulation determines the state’s representative’s attribution, the mode of assigning and revoking it. The state’s representative, acting on behalf of empowered authority, will represent and defend the rights and legal interests of the states in conformity with the given Regulation, in a commercial society with the state’s due share or which holds in economic administration assets which are the state’s property. (Government Decision No. 1053 as of November 11, 2010, Official Monitor of the Republic of Moldova No. 226 as of November 26, 2010).

4. The National Energy Regulatory Agency approved the Regulation on the mode of measuring electric power in commercial purposes.The Regulation determines principles and conditions within which the measuring of quantities of electric power produced, imported, exported, in transition, transported, distributed, supplied and consumed takes place, for profit purpose. (Decision of the National Energy Regulatory Agency No. 382 as of July 2, 2010, Official Monitor of the Republic of Moldova No. 214-220 as of November 5, 2010)