BUSINESS GUIDE TO MOLDOVA – 2006 - PricewaterhouseCoopers.

Brief Table of Contents

Chapter 1: Moldova: a Profile

Chapter 2: Business Environment

Chapter 3: Foreign Investment, Privatisation and Foreign Trade

Chapter 4: Banking and Finance

Chapter 5: Corporate and Business Law

Chapter 6: Labor Relations and Social Security

Chapter 7: Accounting and Audit Requirements and Regulations

Chapter 8: Taxation of Corporations

Chapter 9: Taxation of Individuals

Chapter 10: Indirect Taxation

Chapter 11: Introduction to PricewaterhouseCoopers

Appendices

Expanded Table of Contents

BUSINESS GUIDE TO MOLDOVA – 2006 - PricewaterhouseCoopers.

Chapter 1: Moldova: a Profile

1.1 General Description

1.2 Political system

1.3 Population and Urbanization

1.4 Language

1.5 Education

1.6 The Economy

1.7 Transport and Communications: Transport, Communications

1.8 Business Visitors: Visa Requirements, Currency, Statutory Holidays

Chapter 2: Business Environment

2.1 Business Climate

2.2 The Aims of Government Policy

2.3 Free Trade Zones

2.4 Small and Medium-Sized Business

2.5 Participation in International Organisations: Support from International Financial Institutions

2.6 Land Ownership

2.7 The Property Market

Chapter 3: Foreign Investment, Privatisation and Foreign Trade

3.1 Foreign Investments: Current Investment Overview

3.2 Foreign Investors Association

3.3 Rights and Guarantees

3.4 Privatization

3.5 Foreign Trade

Chapter 4: Banking and Finance

4.1 The Banking System

4.2 The National Bank of Moldova (NBM)

4.3 The Foreign Exchange Market

4.4 Banking Market: Credit activity, Repatriation

4.5 Financial Markets: Primary Market of State Securities, Secondary Market of State Securities, Insurance Market

Chapter 5: Corporate and Business Law

5.1 Legal Framework

5.2 Forms of Business Organization: Joint Stock Company (SA), Limited Liability Company (SRL)

5.3 Enterprises with Foreign Investment (including joint ventures): Subsidiary and Representative office, Registration

Chapter 6: Labor Relations and Social Security

6.1 Labor Relations: Availability of Labor, Employer/Employee Relations, Trade Unions

6.2 Working Conditions: Wages and other Salary Rights, Working Hours, Paid Holidays and Vacations, Equal Opportunities, Health and Safety, Termination of Employment

6.3 The Social Insurance System: Coverage, Contributions,

6.4 Foreign Personnel: Work and Residence Permits, Medical Insurance, Living Conditions

Chapter 7: Accounting and Audit Requirements and Regulations

7.1 Background

7.2 Accounting: Moving Towards International Accounting Standards, Current Regulations

7.3 The Chart of Accounts

7.4 Preparation and Approval of Financial Statements: Legal Requirements, Auditing Standards for Legally, Required Audits, Audit Opinions Issued Under Moldovan Law, Securities Commissions Requirements

Chapter 8: Taxation of Corporations

8.1 Background

8.2 Corporate Income Tax System: General, Territoriality,

8.3 Tax Exemptions: Small Business Companies, Investment tax incentives, Free Entrepreneurial Zones, IT companies, Farming entities

8.4 Taxable Base: Certain non-taxable Sources of Income, Interest, Royalties, Dividends and Service fees, Capital Gains and Losses, Deductible Expenses, Interest Expenditure, Other Expenses, Loss carry forward, Deduction of Expenses by a Permanent Establishment, Limited Deductions, Non-deductible expenses

Tax Computations, Withholding tax on payments to residents, Withholding tax on payments to non-residents, Double Taxation Agreements

8.5 Other Taxes: Tax on immovable property, Tax on advertising placement, Land Improvement Duty, Taxes on Natural Resources

Chapter 9: Taxation of Individuals

9.1 Income Tax System: General, Territoriality and Residence

9.2 Gross Income: Employee’s Gross Income, Capital Gains and Loses, Taxation of Non-residents, Exemptions and Deductions, Tax Administrations

9.3 Other Taxes: Social Security Contributions, Medical Insurance Contributions

Chapter 10: Indirect Taxation

10.1 Value Added Tax (VAT): The Scope of VAT, Rates of VAT, VAT Exemptions, Import VAT, VAT for Transit and Temporary Imported Goods, Input VAT Deductions, VAT Refund, Non-deductible Input VAT, VAT Administration

10.2 Customs Duties: Overview, Customs Duties, Preferential Customs Treatment, Customs Regime for Individuals

10.3 Other Indirect Taxes: Excise Duties

Chapter 11: Introduction to PricewaterhouseCoopers

PricewaterhouseCoopers in Moldova

Assurance Services

Advisory Services

Tax and Legal Advisory Services

Appendices

Appendix I Government Ministries & Bureaux

Appendix II Bilateral Investment Treaties

Appendix III Major Banks Operating in Moldova

Appendix IV Hotels and Restaurants

Appendix V List of Current Accounting Standards

Appendix VI Major Differences between the Practical Implementation of

International Accounting Standards and National

Accounting Standards and National Accounting Standards

Appendix VII Chart of Accounts

Appendix VIII National Standards on Auditing

Appendix IX Double Taxation Treaties to which Moldova is a Party

Appendix X Excise Tax for Imported and Domestic Products

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