The policy paper supporting the development of the information technology industry sector in the Republic of Moldova is the Strategy for increasing the competitiveness of the information technology industry for the years 2015-2021, approved by the Government Decision no. 254 of 14.05.2015.

The goal of the Strategy is to create a competitive, regional and international IT-based industry based on knowledge and innovation, where companies create added value and offer complex products and services integrating research and development outcomes. 

A major initiative emerging from this strategic approach deals with the business environment favorable to IT business. Here our intervention is the Law on information technology parks (No. 77 of 21.04.2016).

The key element of the Law is to implement the innovative taxation model by applying a 7% single tax to IT park residents with simple and clear management mechanisms.

The parks will offer a “virtual operating” regime and residents will be able to carry out their activities and make use of facilities, even from their own offices or residences, after appropriate registration. This will allow the legalization of businesses, salaries and, ultimately, the increase in the taxable base of an industry with high added value and the best paid jobs.

As a result of the analyzes, the current tax incentives for the employees of the IT companies have been expanded by 2020.

Thus, taxable income is the monthly income, the size of which does not exceed 2 average monthly salaries forecasted for that year, for employees of IT companies, whose core activity is program implementation. Monthly earnings exceeding 2 average monthly salaries forecasted for that year are considered non-taxable.