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Barriers to Trade and Investment Attraction in the Republic of Moldova. Barriers to Doing Business and Investment Attraction. Tax policy Labour market regulation Competition Justice Administrative issues Customs. Tax Policy Issues. - PowerPoint PPT Presentation
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Barriers to Trade and Investment Attraction
in the Republic of Moldova
Barriers to Doing Business and Investment Attraction Tax policy Labour market regulation Competition Justice Administrative issues Customs
Tax Policy Issues
Advance payment of income tax and penalty for the forecast gap
Correlation of the Tax Policy with the operation of businesses under market economy principles
Tax penalties disproportionate to violations Incentives for major investors to recover VAT on
capital investments
Labour Market Regulation
Create incentives for employers to increase salaries by adjusting social insurance rates
Review the share of contribution to NSIO/NHIC to motivate businesses to pay official salaries and taxes
Streamline and automate the procedure of obtaining work permits for foreigners (due to shortage of skilled labour)
Amending Article 20 of Chapter 2 of the Tax Code to provide that lunches are treated as an incentive granted by the employer, not to be treated as a taxable income of the employee
Competition
Lack of a single and universal methodology for determining market dominance
Lack of a legal framework to regulate the procedure of initiation, conduct, review and issuance of sanctioning decisions by the NACP
Uncertainty about accountability of businesses violating competition protection rules
Counter unethical businesses and ensure a level playing field for competitors (avoid unofficial wages, prevent tax evasion)
Review and economic justification of the list of social goods and the profit margin
Administrative Barriers
Streamline administrative procedures, enforcement of the one-stop shop concept (e.g. simplify accounting laws, in particular, for small businesses)
Eliminate deficiencies in procedures for registration and liquidation of businesses (e.g. proof of registered address, enforcement of the one-stop shop concept, return of tax invoices upon change of partners ....)
Superfluous limitations to corporate governance and economic operation of businesses in Moldova (e.g. prohibition to make payments through intermediaries, duplication of procedures for technical authorisation and certification, limitation of cash payments between businesses)
Unreasonable barriers to flexible transactions relating to mergers and acquisitions
Short-term licensing of entrepreneurial activity hinders medium and long term business planning
Superfluous certification of products imported from countries that ensure high quality standards
Customs Issues
Discretionary treatment by customs authorities Increase predictability and transparency of customs
procedures which would enable businesses to estimate by themselves amounts to be paid
Simplify export procedures Develop guidelines / regulatory framework to avoid
ambiguous interpretation of the Customs Code Cumbersome/delayed implementation of the VAT refund
procedures for export Publish all customs procedures on the website of the
Customs Service