Moldova IT Park

“Moldova IT Park” is the main focal point of access to best services and incentives in the IT sector, which has proven its uniqueness by being a virtual structure.

Any legal entity registered in Moldova and aiming to carry out activities stated by the law can become an IT park resident by concluding a contract with the Administration of the IT park.

IT parks incentives

(a) Virtual presence

The residents of the IT Park can be located anywhere on the territory of the Republic of Moldova.

(b) Single taxation regime

The residents of the IT Park pay a single tax of 7% on sales revenue (but not less than a minimum amount per employee, which equals to 30% of the average monthly wage forecasted per economy for that year – e.g. 30% x 9000 MDL = 3000 MDL per month per employee).

The single tax includes the following taxes:

• Corporate income tax;
• Personal income tax on salary;
• Social security contributions (due by both employee and employer);
• Health insurance contributions (due by both employee and employer);
• Local taxes;
• Immovable property tax;
• Road usage tax.

Other taxes, which are not covered by the single tax, are due according to the general rules. These include:

• Withholding taxes;
• VAT and excises;
• Other taxes not specifically included in the single tax.

(c) Simplified tax reporting

Since 7 taxes were included in the single tax, the IT Park residents have a simplified reporting regime. Overall, the single tax return replaced all standard returns related to taxes included in the single tax.

(d) Application of the law over time

In case new laws that modify or cancel the rate and/or the composition of the single tax are adopted, the residents of the IT Park have the right, to work according to the existing law until 31 December 2025.

(e) Favourable immigration regime (IT Visa)

Foreign individuals with senior management positions in entities performing IT activities and IT specialists are entitled to favourable immigration rules as follows:

• IT specialists can work in Moldova for a period up to 90 days during every 6 months based on a simplified notification to the Bureau of Migration and Asylum;
• IT specialists can obtain a work permit for a period up to 2 years;
• IT managers can obtain a work permit for a period up to 4 years.

It should be mentioned that the periods for which IT managers and specialists are granted work permits is double as compared to standard rules.

(f) Benefits for employees

Insured by the state – while being exempted from the tax burden, the employees continue to benefit from social insurance in amount of 60% of the average salary in the economy (approved on a yearly basis by the Government).

No taxes on other benefits – all extra benefits granted to employees (e.g. bonuses, premiums, benefits in kind) are not subject to additional taxation.

No need to submit individual personal income tax return – all income obtained by employees within their labour relationship with an IT park resident shall not be additionally reported in the annual personal income tax return.