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Moldova: Tax Incentives for IT Parks

(Aug. 4, 2015) It was reported on August 3, 2015, that the Parliament of Moldova had approved draft legislation on tax incentives for information technology parks. (Vasile Foltea, Moldova: Tax Incentives Granted to IT Parks, TAX NEWS SERVICE (Aug.3, 2015), International Bureau of Fiscal Documentation online subscription database.) The draft law provides that the IT parks are to be established for a period of up to ten years and may engage in customer-oriented, game, and other forms of software development; IT management; and “database management, web pages management and other related activities.” (Id.)

The tax incentives for companies that locate in the IT parks include:

  • a unified tax of 7% on income from sales (with the tax to include corporate income tax, personal income tax, social security, and health care contributions payable by both employers and employees, local taxes, property tax, and road fees); and
  • an exemption from customs duties and value-added tax for imported IT hardware needed to conduct business activities. (Id.)

A sunset provision in the draft legislation provides that companies in IT parks may continue to conduct business under previously applicable rules “in cases where newly adopted laws amend or cancel the unified tax,” with the period covered by the sunset clause to be “the lesser of 7 years or the period of the IT park’s operation.” (Id.; see also Proiectul legii cu privire la parcurile din industria tehnologiei informatiei [Draft Law on Information Technology Industrial Parks], Parliament of the Republic of Moldova website (May 5, 2015).)