The information technology sector is one of the fastest-growing sectors of the economy. The Republic of Moldova is interested in creating a favorable environment for research, development, and digital innovation. On January 1, 2018, the IT Park began operating in our country – a platform created by the government to increase the attractiveness of IT business for investors and developers.
The platform exists virtually, which allows residents to continue working in their offices anywhere in the country, as before.
Benefits for IT Companies
One of the most important advantages of the IT Park is a simplified tax regime. IT companies registered in the IT Park do not need to pay profit tax, income tax, health insurance contributions, or social security contributions. Instead, they pay a single tax of 7% to the Ministry of Finance on a monthly basis.
This benefit will significantly reduce the tax burden on IT companies and allow them to focus on their core activities, such as increasing the competitiveness of their products, improving working conditions, etc. Companies that want to become residents of the IT Park must consider the following:
- A company becomes a resident of the park immediately after signing a contract with it, but it switches to the new tax regime from the next month of operation.
- The amount of tax to be paid cannot be less than one-third of the projected average salary in the Moldovan economy per employee.
- To maintain residency, it is important that the company carry out one or more of the activities listed in Article 8 of Law 77/2016 on IT Parks. For this purpose, an annual audit is conducted, the results of which are submitted to the park administration. The resident himself chooses the auditor and concludes an agreement with him.
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