Effect given to the recommendations of the committee and the Governing Body - REPORT_NO344, March 2007

Effect given to the recommendations of the Committee and the Governing Body

1. 130. The Committee last examined this case at its November 2005 session [see 338th Report, paras 1074–1085] and invited the Government to take the necessary measures to review the Fiscal Code in full consultation with the social partners concerned, with the aim of finding a mutually agreeable solution to the issue of fiscal treatment of membership fees paid by employers to their organizations, including considering the introduction of tax regulation that would enable the deductibility of these fees should there be any discrimination in fiscal treatment.
2. 131. In a communication dated 2 October 2006, the Government informs that on 28 July 2006, the Parliament of the Republic of Moldova adopted Law No. 268 – XVI for the amendment of some legislative acts. This Law came into force on 8 September 2006. This Law amended, among others, the Fiscal Code of 24 April 1997. Section 24 of the Code, which sets out the deductibility cost for entrepreneurship activity, was completed by paragraph 15 that ascertains the permission for deductibility fees paid by the contributors during the fiscal year in form of adherence taxes and membership fees intended for the activity of employers’ organizations. The deductibility ceiling is 0.5 per cent from the wage found. The Government therefore considers that the issue of the present complaint is entirely settled.
3. 132. The Committee notes this information with satisfaction.