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ITP-Law

Information Technology Parks Law

Law regarding the information technology parks

Commentary to:

Art.

14 ITP-Law/

Art.

- Allocation of the amounts of the one-off tax levied on residents of information technology parks

( In force since 2017-01-01 )

Amounts paid by park residents by way of the one-off tax levied on residents of information technology parks will be collected by the Ministry of Finance into a treasury collection account and subsequently distributed:

(a) to the state budget:

income tax from entrepreneurial activity - 10.0%,

income tax withheld from wages - 19.4%,

tax for the use of roads by motor vehicles registered in the Republic of Moldova - 0.1%;

b) to the state social security budget:

compulsory state social insurance contributions from residents of information technology industry parks - 54.7%;

c) to the compulsory health insurance funds:

compulsory health insurance premiums in the form of a percentage contribution from salary and other rewards, paid by employers and employees - 15.4%;

d) local budgets:

local taxes levied on residents of information technology parks - 0.3%,

tax on real estate of legal entities - 0.1%.

Franz-Anton Plitt (President of the supervisory board)
MDW - Moldova´s Germanspeaking Business Association
Chisinau Moldova
franz-anton.plitt@mdw-moldova.org - www.mdw-moldova.org

Moldova for investors

Up-to-date:

2021-04-10

This is a seria of explanations to some important laws for investors in Moldova. The authors are members of the MDW, Moldova´s Germanspeaking Business Association. We hope this will help to get more investments to Moldova. Btw, the membership in our association does not require German language skills (though we see our special task in assistance in relations between Moldova and German speaking business people). Thus if you like our work for Moldova and want to further it: Contact us!

Basics

Here you can see very nicely, what shall be covered by the one-tax-system.

Effectively the state does here the work what in other systems is done by the employers/ enterprises: To calculate and then to pay to different receivers.

From my point of view is this the much more efficient way. It simply spares many hours of work of people in the accounting business.

So for me this method of "paying in one amount to the state and the state forwards the money to the different units" looks not only more simple but also more transparent. It is 100% clear, what part of the money is for what purpose. If the state wants to change this diversion: Change this law.

In comparison: In nearly all western systems the health care system and the pensions system are supported with money from the income tax and other taxes. The result: Nobody has a clear idea how expensive these things are.

As neither the VAT nor the dividends tax is mentioned you can also see here that these taxes have to be paid additionally = in the normal ways. Dividends tax is currently 6%, perhaps not applicable, depending on the double taxation rules. VAT is normally not relevant.