ITP-Law
Information Technology Parks Law
Law regarding the information technology parks
Commentary to:
Art.
16 ITP-Law/
Art.
16- Social and health insurance for Park residents
( In force since 2020-08-07 )(1) Employees of Park residents enjoy all types of social insurance benefits paid from the state social insurance budget, in accordance with the current legislation. The insured monthly income of these employees should be 68 percent of the average monthly salary for the economy projected for the corresponding year.
(2) Employees of Park residents receive the status of an insured person in the mandatory health insurance system based on updated information provided in the income tax reports, mandatory health insurance contributions and mandatory state social insurance contributions withheld and accrued in accordance with the current legislation.
(3) The Park resident must provide its employees with written information about the specifics of social and health insurance established by this article, as well as about the specifics of income tax on wages before obtaining the status of a Park resident, and in the case of new employees – before hiring them.
MDW - Moldova´s Germanspeaking Business Association
Chisinau Moldova
franz-anton.plitt@mdw-moldova.org - www.mdw-moldova.org
Basics
You really pay the 7% of the turnover or per employee the minimum amount of 30% of the average gross wages of all workers in the Republic of Moldova. This is currently about 130 €/ month.
The higher amount has to be paid.
You really don't pay further taxes, social security contributions, etc. Mainly this means that wage increases, overtime payments, other goodies like stock options, etc. are completely free of further taxes!
This is not mainly to make it even cheaper to employ low qualified, low paid staff. At the end of the day it helps more to pay higher net wages than lower.
And this is the purpose: To make it cheaper to pay higher net wages to higher qualified people in Moldova than somewhere else. This way these qualified people will be more likely to stay in Moldova instead of going abroad.
Besides that it makes life for the leading heads much easier. They can concentrate on their real work, what is mostly: Developing better solutions in the international competition.
It is probaly also more efficient that the state collects one sum and forwards then centralised the money to the different institutions than if every enterprise has to do that. E.g. that reduces the total amount of transfers enormously. To show that: If 1,000 companies would only have to make 4 transfers (e.g. social insurance, profit tax, car tax, ground tax) that are 4,000 transactions. If they do only 1 each to the state as the tax collector and then the state forwards every money out of the total amount except the taxes what he keeps for himself, then only 1003 transactions have to be made.
I think, this is a first big step into the future of taxation in a globalized world. At least an interesting proposal.
