PAA: Tax & Legal Newsletter

PAA: Tax & Legal Newsletter

• 11.02.2009

New legislation of the Republic of Moldova Law On ratification of Convention on avoidance of double taxation on income and capital between Finland and Moldova. Law N168-XVI of 9 July 2008 The Convention on avoidance of double taxation on income and capital with Finland is ratified. Normative acts modifying and amending the legislation in force Laws On modifying and amending the Labor Code N154-XV of 28 March 2003. Law N60-XVI of 21 March 2008 1. Change of the employee work place does not require modification of the individual employment contract. 2. Provision according to which the employee shall be informed on necessity of change of the individual employment contract two months prior to such change is cancelled. 3. Detachment of the employee to other work places is carried out on the separate fixed term individual employment contract. 4. The individual employment contract ends based on the employer order. The employee shall be noticed regarding the order not later than the day of dismissal. 5. The employee shall inform about his resignation by a written notice submitted to the employer 14 calendar days before the resignation. Managers (directors) and chief accountants shall submit their written notices one month before the resignation. The mentioned terms begin next day after the written notice submission date. If after the specified terms the employee actually has not been released from a post and continues its labor activity, without having confirmed in writing the desire to terminate the individual employment contract, its dismissal is not permitted. 6. In case the working day preceding a legal holiday, is transferred to another day, the reduced duration of the working day is saved. 7. The annual paid leave can be divided into several parts one of which should be not less than 14 calendar days. 8. In case the annual paid leave concur (in full or in part) with a medical holiday, maternity leave or an educational leave, it is transferred for the period stipulated by the written agreement of the parties, or extended for a number of days indicated in the document on granting of corresponding holiday, within the same calendar year. 9. If the remained days of the annual paid leave have not been used by the employee for any reasons within the same calendar year, he has the right to use these days within the next calendar year. 10. Under a written statement of the employee working in a holiday the employer can grant him another day which is not paid. This law enters in force from 1 July 2008. On modifying and amending some normative acts. The Law N139-XVI of 20 June 2008 Tax Code Title IV "Tax Administration" 1. During the tax controls which are carried out within the limits of criminal prosecution, officers of the Center on struggle against economic crimes and corruption have the rights of tax inspectors. 2. They have the right to calculate the tax obligations and transmit them to tax authorities for enforcement. This law enters in force from 15 July 2008. On modifying and amending some normative acts. The Law N172-XVI of 10 July 2008 Tax Code Title II "Income Tax" 1. Since 1 January 2009 the personal allowance is 7,200 MDL and the dependents allowance is 1,680 MDL per a dependent. 2. At excess of donation admissible allowance for charitable purposes and sponsor|s support the tax payer shall pay the income tax at a 15 percent rate of the exceed amount. The tax is paid to the state budget not later than 31 March of the year following the reporting tax year. Tax Code Title III "VAT" Import and delivery of goods or services for technical projects realized in Moldova by international organizations are taxed with the zero rate of VAT. This provision enters in force from 1 January 2009. On introduction in action the Tax Code Title VI "Real Estate Tax" Till 1 January 2010 the land tax and the real estate tax shall be applied in accordance with the Law on introduction in action the Tax Code Title VI "Real Estate Tax". On modifying and amending some normative acts. The Law N164-XVI of 9 July 2008 On the real estate cadastre 1. Contracts on investments in buildings with physical persons are subject to the notary authorization and registration in the real estate register. In case the agreement has not been notarized it can be declare invalid. 2. It is prohibited to levy any payments from the physical persons before the contracts registration in the real estate register. 3. After putting into operation of the building a record on the building property right shall be done in the real estate register. On notary Contracts on investments in buildings with physical persons shall be notarized under the condition of submission of the following documents: Permission for construction Construction project The documents confirming the property or use rights on the land. On the payment for the notary services The fee for the notarization of the contract on investments in buildings makes 180 MDL. On state due The state due for the notarization of the contract on investments in buildings makes 36 MDL. This law enters in force from 29 July 2008. On amending the Law on payments for environmental pollutions N1540-XIII of 25 February 1998. The Law N173XVI of 10 July 2008 1. The payment for packing from plastic or "tetra-pak" in which production contains (except for dairy) shall be done when imported. 2. This payment is established in the next sizes: -For one packing from plastic: Up to 1 L 0.80 MDL From 1 to 3 L 1.00 MDL Over 3 L 1.50 MDL -For one "tetra-pak" packing: Up to 1 L 1.00 MDL 1 L 1.50 MDL From 1 to 2 L 2.50 MDL Over 2 L 3.00 MDL. This law enters in force from 29 July 2008. On modifying and amending some normative acts. The Law N172-XVI of 10 July 2008 Tax Code Title IV "Tax Administration" 1. The tax authorities submit to the Registration Chamber documents for initiation of procedure of elimination from the State register the tax payers which jointly -Have debts to the State budget; -Are not the founders of other legal entities -Within the last following 24 months did not submit tax reports and did not make and receive bank transfers -Does not possess the property. This law enters in force from 1 January 2009. On modifying and amending article 18 of the Law on temporary disability allowances and other social insurance allowances N289-XV of 22 July 2004. The Law N155-XVI of 4 July 2008 1. The monthly allowance on education of the child cannot be less than 200 MDL per a child. 2. Since 1 January 2009 the monthly allowance on education of the child makes 25 percent from the monthly average income for the last 6 months, but cannot not be less than 250 MDL per a child. This law enters in force from 25 July 2008. Should you require further information, please do not hesitate to contact Ms. Carolina Vieru, by phone 582-106 or by e-mail:cvieru@paa.md

P.A.A. Tax, Legal, Accounting

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