The regular edition of the FIA White Book contains 115 proposals to improve the investment climate in Moldova.
The Foreign Investors Association issued the 8th edition of the White Book. It contains proposals on 9 chapters, and the recommendations are developed in accordance with the National Development Strategy "European Moldova 2030". This year some chapters were revised ("Labor Market", "Transition to Green Economy", "Digital Transformation"), and there is no chapter dedicated to telecommunications at all - most of the recommendations given earlier for this sector have been implemented. In general, FIA notes that the government has adopted or is implementing an unprecedented number of proposals from the previous edition of the White Book (2021) - about 87%. The FIA has submitted the most proposals in the Tax Legislation section - this is necessary to bring the tax system in line with current conditions against the backdrop of the multiple crises of recent years. The proposals stem from the desire to increase the sustainability of individuals and legal entities through tax instruments, as well as from the need to bring national legislation in line with European legislation. For instance, it is proposed to introduce in the Tax Code the procedure of taxation of employees of the stock option plan type (employees who are granted restricted shares in the company upon reaching certain criteria). It is proposed to increase to 100 lei the nominal value of the food voucher; to adjust the provisions of the law on tax losses, tax deductions, and transfer prices. It is proposed to establish a unified and reduced VAT rate of 8% for dairy products, vegetables, fruits, etc.; to develop a unified and mandatory methodology for the calculation of local fees, etc. The key priority of the White Book remains the reform of the justice system. It is noted that the prospect of European integration, opened up by Moldova's status of candidate country in June 2022, requires structural reforms, especially the reform of the justice system, which is the cornerstone for systemic progress in other sectors. This is a complex process that requires commitment, resources and continuous monitoring. In particular, it is proposed to revise the business sanctions system, strengthen the capacity of the National Integrity Agency, enable remote court sessions, and transpose a number of European directives into national legislation. In the section "Labor Market", the need to modernize labor relations is mentioned, especially in the context of globalization and increased migration of population, as in this context the labor market in Moldova continues to be vulnerable. In the field of competition, the proposals concern strengthening, ensuring the independence and empowering the Competition Council; amending the anti-competitive legislation and harmonizing it with the European one; promoting a competitive culture, etc. In the "Financial System" section, the proposals focus on improving financial stability: it is recommended to improve cooperation with ship operators, to improve the conditions for the agricultural sector to allow banks to finance agrarians with minimal risks; to adopt a series of measures to develop the insurance sector, etc. Also, detailed FIA recommendations are presented on the sections "Digital Transformation", "Transition to Green Economy", "Medicine and Pharmaceuticals", "Land Issues". The White Book was first developed and presented in 2005. The presented recommendations are of a recommendatory nature. The Foreign Investors Association unites 26 foreign investors from 15 countries. More than 23 thousand jobs have been created in these companies, and the total volume of investments exceeds 2.6 billion euros (equivalent to 19% of Moldova's GDP). In 2023, the FIA celebrated its 20th anniversary. // 31.10.2023 – InfoMarket
