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Legislative Provisions Related to the State of Exceptional Situation

Legislative Provisions Related to the State of Exceptional Situation

Moldova
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By Decision No. 361 dated 24 November 2023, the Parliament decided to extend the emergency state on the entire territory of the Republic of Moldova for 30 days, starting on 1 December 2023.

This was the last decision to extend the state of emergency, hence, starting 1 January 2024 the provisions of the Exceptional Situations Commission decisions will no longer apply on the territory of the Republic of Moldova.

1. Commercial and Corporate

Law(s): 

  • Time Limit Reduction for Complaints in Public Procurement Procedures

The time limit within which the contestant is entitled to file a complaint in public procurement procedures shall be reduced from 5 days to 3 days from the notification issued by the National Agency for Settlement of Complaints. 

  • Licensing of Subsidized Pharmaceutical Activities in Rural Areas

The Regulation establishes the procedure for licensing and state subsidization of pharmacies in rural areas to provide with pharmaceutical assistance.

To receive state subsidies, a pharmacy shall be licensed to carry out such activity in rural areas, have previously agreed to the distribution of medication and compensated medical devices with the National Health Insurance Company, have a cash register and control equipment, an automated information system, an internet connection, and any other equipment necessary for carrying out the activity.

2. Tax and Customs

Law(s):

  • VAT Refund Programme for Agricultural Producers

Agricultural producers shall be able to claim VAT refunds for the following tax periods:

  • April 2022 to June 2023, inclusive and
  • July 2023 to June 2024, inclusive.

 

  • Amendments to the Tax Code

The Tax Code was supplemented with new provisions governing the tax regime for economic agents engaged in activities in the field of ferrous and non-ferrous metal waste trading, as well as submission of tax statements, and the deadline for payment of tax obligations during the suspension of the economic agent's activity, and the procedure for challenging the decision of the State Tax Service or action of the tax representative.

The Law extends the list of deductible expenses incurred by the employer for the benefit of the employee, as well as the sources of non-taxable income.

  • Revision of the Rules on the Determination of Capital Gain or Loss

In respect of capital assets, capital gain or loss is not recognized when:

  • redistribution of property between spouses or between former spouses, if such redistribution results from the need to divide the joint property in the event of divorce;
  • redemption and/or exchange of debt securities, debentures, by their issuers;
  • redemption and/or exchange of state securities, carried out by the Ministry of Finance or primary dealers within the meaning of the Law No. 419/2006 on public sector debt, state guarantees and state re-crediting;
  • the exercise of the right, provided for in the option, to buy or sell equity assets and/or to convert options.

Draft law(s):

  • Establishing a Moratorium on State Control of Micro, Small and Medium-sized Enterprises (SMM)

The moratorium shall be established until 31 December 2024 on state control, including fiscal, financial, quality products/services, technological parameters, or specific requirements for the type of activity carried out, on compliance with labour protection rules, on planned or unannounced controls, carried out on the spot, at the premises, places of activity or places where the goods of registered persons carrying out entrepreneurial activity are located.

The controls shall be carried out by authorized bodies empowered to initiate controls based on legal provisions.

3. Employment and Social 

Law(s):

  • Foreign Citizens Allowed to Work in the Republic of Moldova without a Work Permit

According to the amendments, citizens of authorized states may work on the territory of the Republic of Moldova for up to 90 days without obtaining a temporary stay permit for work purposes or a temporary work permit, if they have a visa, a right of stay, or a right of temporary residence, as applicable.

4. Environment 

Law(s):

  • New Provisions on Waste Disposal

The Regulation establishes the legal framework for waste disposal activities, including the design, construction, operation, monitoring, closure, and post-closure monitoring of new and existing landfills. These activities are carried out under strict technical and operational requirements, which are established to ensure the highest level of environmental and public health protection.

The legislative amendments introduce measures and guidelines to prevent and reduce negative impact on environment and public health caused by landfills throughout their life cycle.

5. Digitalization 

Law(s):

  • Legislative Amendments for IT Parks 

In case when amendments to legislation are adopted that modify the amount or structure of the single tax levied on IT park residents, or cancel it, park residents will be entitled, until 2035, to carry out their activities following the laws effective as of the date of entry into force of the amending legislation.

If certain taxes or fees included in the single tax levied on IT park residents are replaced by other taxes or fees under the legislation, the structure of the single tax will be adjusted accordingly, without changing its rate.

  • Regulation on Licensing and Registration as Payment Service Providers and/or Electronic Money Issuers

The Regulation provides for the authorization and registration of payment institutions, electronic money institutions, and postal service providers as payment service providers and electronic money issuers. It defines the category of "non-bank payment service providers", outlines the requirements for licensing, specifies the documents to be submitted to the NBM, and establishes the requirements for persons occupying managerial positions within the undertaking.

OTHER AMENDMENTS THAT MAY AFFECT THE COMPANY

Law(s)

  • Introduction of the Stamp Duty

Stamp duty is a one-time fee charged for the lodging of a civil or administrative lawsuit, both at first instance and on appeal. This fee is not subject to any exemption, deferment, or instalment, except as provided for by law. Furthermore, the amount paid as stamp duty cannot be refunded or set off against the account of the losing party.

According to the provisions of the law, the stamp fee is MDL 200.

By Domnica Bejan, Junior Associate, and Laurentiu Racu, Legal Assistant

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ACI Partners is a leading law firm in Moldova with an expanding network of partners throughout Europe. ACI Partners was established in 2006 and since then has managed to build a very strong and competitive legal practice. Our business strategy strives to deliver a solid and reliable service, going beyond merely grasping the law, which the clients may turn to whenever they need. In reaching this goal, ACI Partners employs a personalized approach to each client, showing a genuine respect for their values and unqualified commitment to their interests and needs, steadily investing in knowledge and data management and ensuring a working environment consistent with our clients’ quality demands and high expectations.

ACI Partners is a one-stop shop law firm proficient in all possible legal matters a business might come across in Moldova, starting with incorporation of a business, and obtaining of all the necessary regulatory permits, continuing with various daily matters, such as contracts, labor, and migration, and finishing with dispute settlement, insolvencies, and criminal investigations. But we pride ourselves especially for our unmatched expertise in most innovative and complex areas for Moldova, as Modern Financial Products, Data Protection, Renewable Energy, Competition, Clinical Studies, Public Procurement, and Regulatory. In our work, we always involve a team of professionals with the relevant skill-mix, which enables us to provide our clients with an integrated and comprehensive advice, superior to our competitors.

ACI Partners has advised the Government of the Republic of Moldova, businesses, international organizations, and other institutions on most challenging transactions, assignments and projects.

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