Membership Benefits & Services<strong>AmCham</strong> Committees <strong>Report</strong>sParticipation is the best way to maximize your membership and get the greatest returnon your investment.Through committees, <strong>AmCham</strong> <strong>Moldova</strong> encourages co-operation between companieswithin the same industry, across industries or within the same profession, enabling themto identify and address common issues, and achieve common goals.Financial Services Committee was launched in <strong>2010</strong>, while Tax & Legal Committee, HumanResource Committee, and Corporate Social Responsibility have been continuing itssuccessful activity.<strong>AmCham</strong> Tax & Legal CommitteeCo-Chairs:• Svetlana Ceban, Tax Manager at PricewaterhouseCoopers <strong>Moldova</strong>• Corlateanu Nicolae, Corporate Affairs and Communications Associate at JTI <strong>Moldova</strong>Committee Coordinator: Serghei Toncu, <strong>AmCham</strong> Project ManagerAbout the CommitteeCommittee as such and its members represent the voice of private sector in the dialoguewith policy makers on tax and legal issues, promote reform and improvement of legalframework applying best international practices, foster an effective and transparent fiscalsystem in <strong>Moldova</strong>, meet the educational and information needs of the members byorganizing and attending various topical presentations, conferences, round tables withrelevant keynote speakers etc.Committee members permanently review and comment on drafts of normative acts, addressrecommendations to different state authorities regarding the proposed or existingtax and regulatory norms with sometimes adverse effect on private business.Mission StatementTo act as a lobby and advocacy group for tax and legislative issues affecting members, toimprove tax and regulatory framework as such and, in the same time, to serve as an educationalforum for membership and to facilitate the information exchange on importanttax and legal issues.The message of Svetlana Ceban (Committee Co-chair):“One of the biggest concerns of the business world, including <strong>Moldova</strong>n companies, whichhas become even more critical during the current economic recession, is the fact that Governmentintentions are often at odds with the needs of businesses. The Government continuouslytends to implement measures designed to increase its budget whilst businesseswant to operate in a more favourable and stable climate. A very important contribution tothe process of recovery can be made by the Government and businesses collaborating toachieve a win / win situation and ensure sustainable and long-term oriented policies.It is obvious that such matters cannot be handled, solved or improved by any businessor Government on its own. We have noticed that the <strong>Moldova</strong>n Government is indeed listeningto the external suggestions made by businesses and business associations, at leastwhen it comes to taxes. However, we all need to look forward and, particularly in thesedifficult times, we should be even keener to collaborate.The main purpose, therefore, of our Tax and Legal Committee is to further improve theclose and constructive dialogue with the <strong>Moldova</strong>n Government, by promoting an intelligentand authentic business vision aimed at co-designing the tax and regulatory frameworkrelated initiatives. The idea behind this is to develop a tax and legal environment appropriatefor addressing the challenges faced today by all parties and create a vision for tomorrow.24A publication of the American Chamber of Commerce in <strong>Moldova</strong>
Membership Benefits & ServicesTo ensure proportionate, accountable, consistent and targeted proposals, our Tax andLegal Committee represents a team of consultants and business professionals with highlocal and international technical expertise and business orientation. They are highly motivatedto promote the available opportunities and undertake measures to mitigate thepotential exposures businesses could face.Without any doubt, the mix of professionals coming from different industries, such as:Consulting (e.g. PricewaterhouseCoopers <strong>Moldova</strong>, Ernst &Young <strong>Moldova</strong>, KPMG <strong>Moldova</strong>,Turcan Cazac Law Firm etc.), Consumer Industrial Products (e.g. EFES Vitanta <strong>Moldova</strong>Brewery, Sudzucker <strong>Moldova</strong>, Orhei-Vit, Mary Kay <strong>Moldova</strong>, Coca Cola Bottlers Chisinau,etc.), Telecommunications (e.g. Moldcell, Orange, Sun Communications), IT Technologies(e.g. Hewlett-Packard <strong>Moldova</strong>), Energy (e.g. Red Union Fenosa, Bemol), Financial (e.g.<strong>Moldova</strong>-Agroindbank, BCR Chisinau, Prime Capital), are able and eager to share their expertiseand insights from a number of perspectives, making our proposed solutions andobjectives highly representative and sustainable.Clearly, striving for a significant and continuous improvement of the current tax and legalframework in <strong>Moldova</strong> is a challenge. Nevertheless, we can count on the strong cooperationof the <strong>Moldova</strong>n authorities at all levels, as well as on their willingness to concentrateefforts and commonly manage the creation of a tax and legal environment designed toaddress current business needs, as well as future investments in <strong>Moldova</strong>.”Summary of <strong>2010</strong> activities<strong>2010</strong> was extremely productive for Tax & Legal Committee in terms of activity, but alsothe results achieved. The Committee has managed to maintain a group of active members,having the expertise and willingness to follow the mission of the Committee.A n n u a lR e p o r t2 0 1 0Summarised statistics of the <strong>2010</strong> activity is characterized by:- Almost 10 official meetings with high Government officials (Minister of Economy, Viceministersof Economy, Vice-minister of Finance, Deputy Governor of the National Bankof <strong>Moldova</strong>, Deputy Chiefs of Main Tax Authority etc.), but also a significant number ofoccasional meetings on both official and technical levels- More than 10 official position papers to various authorities, but also offering of recommendationsin various Consultative and Working groups- 7 ordinary Committee meetings, but also a number of ad-hoc ones (at <strong>AmCham</strong> or inGovernment authority premise)- Enlargement from almost 10 to 30 Committee participants from different companies- 4 specific Committee projectsMost of all the Committee offered its support to the Ministry of Finance, analyzing draftsof Tax and Customs Policy for 2011-2013 years (a solid, more than 20 pages document inseveral versions). Overall, further to a range of meetings and reflection, the Committee hasprepared and submitted to the Ministry of Finance several complex position papers withspecific and well-prepared arguments based on both local and international experience.In follow-up discussions, the Committee received Ministry’s appreciation of the work performedand demonstrated constructive attitude. In this way the Committee maintainedits active dialogue with policy makers on tax issues, as well as promoted improvements ofthe tax framework.The Committee has also strived for liberalization of VAT refund mechanism (extendingVAT refund possibility to Chisinau and Balti, in case of capital investments) and other improvementsof VAT law (e.g. lowering facultative and increasing compulsory thresholds forVAT registration, improvement of VAT administration in case of imported services etc.).These are, inter alia, other significant suggestions of the Committee:- Diminishing the problems businesses are facing in the field of state inspections- Improvement of tax deduction regime related to philanthropy and sponsorship- Implementation of the binding tax ruling concept- Promotion of the enlargement of the Treaties for the avoidance of double taxation (e.g.in case of USA)- Improvement of tax administration procedures- Revisal and renewal of previous recommendations included in the Roadmap for thedevelopment of <strong>Moldova</strong>’s business and economic climateA publication of the American Chamber of Commerce in <strong>Moldova</strong>25