Tiraspol, 22 March. /Novosti Pridnestrovya/. To develop bilateral contacts, the Ministry of Foreign Affairs of the PMR had arranged to hold regular consultations on a taxation reform between Pridnestrovie's Ministry of Finance and experts of the German consulting company Berlin Economics.
Within the framework of this agreement the finance minister, Irina Molokanova, held the first meeting with German experts Jorg Radeke and Hans-Georg Petersen.
The meeting was also attended by a deputy minister, director of the State Tax Service Alla Skibenko and a deputy director of the STS, head of the taxation department Lyudmila Digusar.
The parties discussed a number of the most urgent questions relating to Pridnestrovie's taxation reform. Special attention was given to issues relating to the administration of the value-added tax (VAT).
According to the press service of the Ministry of Finance, Irina Molokanova informed the colleagues of the German consulting company on issues and difficulties tax experts may face after the introduction of this tax in the PMR.
Particularly, she highlighted a number of major problems such as the lack of software and equipment; the need to train specialists for the STS and companies' financial departments; the undeveloped system of non-cash payments that would supervise the payment of this tax; a limited list of reasons for unscheduled inspections.
At the same time, the ministry representatives noted that the Tax Code, proposed by the government and currently being before the parliament, takes into account all proposals aimed at solving VAT administration issues.
The German experts gave advice on how to enhance VAT administration. They particularly noted the need to implement an e-payment system as the most efficient control instrument.
Within the dialogue the parties exchanged views on a mechanism of VAT calculation and return to exporters and discussed export/import tax features for Pridnestrovian business entities, including with the regard for international trade principles.
Another topic for discussion was levying the VAT on the organisations that are subject to a simplified taxation system and the possibility to adopt the classical tax system for small- and medium-sized businesses.
At the end of the meeting the parties expressed hope for further cooperation for exchanging ideas and experiences. In particular, Jorg Radeke expressed willingness to assist in organising trainings for Pridnestrovie's tax agents and businesspersons.
