FREQUENTLY ASKED QUESTIONS

We hope the following information will be useful and you will find the needed answers, provided for information
purposes, in the sections below.

BECOMING A RESIDENT

 

Are there any requirements to the company’s legal form for becoming a Park resident?

No, any legal entity/individual, registered in the Republic of Moldova as subjects of entrepreneurial activity in accordance with the law, can apply for the residency in the Park.

Can a newly established company apply for „Moldova IT Park”?

Both a newly established company and a company that has operated on the local market for more than 1 year can apply to become a resident of the Park.

Are there any restrictions on the number of employees in order to join the Park?

No, any company can become a resident of the Park, regardless of the number of employees.

Are there salary restrictions for employees of the Park's resident companies?

There are no salary restrictions for employees of resident companies, with exception of the general wage regulations stipulated in the Labor Code of the Republic of Moldova.

Does the company turnover matter for obtaining the status of a Park resident?

The company turnover does not matter to get the status of a Park resident. However, in the application request, the company must indicate the forecasted revenue for the current year.

Can a company register a legal address / rent an office in the Park?

“Moldova IT Park” is a virtual park. Thus, registration of the legal address/rent of an office in the Park is impossible. The resident company can register a legal address, a subdivision anywhere in the Republic of Moldova.

What is the entrance fee?

The registration process in the Park is free of charge. Once a company becomes a resident, it pays a monthly fee starting from the month in which it signed the contract. The fee is calculated by the park administration according to the formula specified in the Law No. 77 as of 21.04.2016.

APPLICATION PROCESS

 

What documents have to be submitted in order to start the examination process?

In order to start the examination process, it is necessary to provide the following documents:

-Application, signed by electronic signature (or provide it in the paper form in case of handwritten signature);

-Scanned copy of the Charter of the company (Statut);

-Scanned copy of the Extract from the State Register of Legal Entities (Extras);

-Scanned copy of the Decision on registration of the legal entity (Decizie privind inregistrarea);

-Scanned copy of the Decision on modifications (in case of changes in the statutory documents);

-Power of Attorney (if necessary).

How do I sign a document with a qualified electronic signature?

To sign a document with a qualified electronic signature, upload the necessary document in .pdf format to www.msign.gov.md. After passing all the steps, download the signed document and enclose it to the letter you intend to send.

Where can I find detailed information about the types of activities allowed in Moldova IT Park?

Moldova IT Park is not authorized to interpret the activities of current or future resident companies.

The company, under its own responsibility, declares in the application form the types of activities that are going to be carried out in the Park.

More information and description of activities can be found on the National Bureau of Statistics official Web page:  (http://statistica.gov.md/pageview.php?l=ro&idc=385&).

How long does the examination process take?

After submission of the full set of documents, the Park administration processes the application and all the attached documents within 7 working days. Then, the administration sends an official letter with information about the result of the examination process, the date and time of appointment for signing the contract, as well as draft contract to the e-mail address stated in the application form.

In case the set of documents is incomplete or the mistakes in the application form were identified, the term of documents examination is extended by 5 days.

The company has 30 days to sign the contract after receiving the official letter from the Park administration. After this deadline, the company should re-submit the set of documents to relaunch the examination process.

Does the company turnover matter for obtaining the status of a Park resident?

The company turnover does not matter to get the status of a Park resident. However, in the application request, the company must indicate the forecasted revenue for the current year.

Does the report attached to the draft contract have to be filled in/presented before signing the contract?

No, the attachment is needed for acquainting yourself with the report, as it is one of the resident’s obligation specified in the contract (p. 2.4.2).

When does the company become a Park resident and start working in the new tax regime?

The company becomes a resident of the Park from the moment of signing the contract, but starts working in a new tax regime from the beginning of the next month.

For example, the contract with the Park was signed on January 17. In this case, the company becomes a resident on January 17, and starts operating in the new tax regime from February 1st.

Who does inform the State Tax Service on the registration of companies as IT Park residents?

According to p.18 of Annex No. 2 to the Government Decision No. 1144 as of December 20, 2017, the administration submits copies of the extract from the Register of Park residents within 10 working days from the date of registration of the resident to the local public administration authorities, tax authority, customs service, social and medical insurance authorities, Bureau of Statistics of the region where the resident’s central office (legal address) is located.

Are there any obligations the company shall comply with before signing the contract with the Park?

According to Article 16 (3) of the Law № 77/2016, the company shall notify its employees, in written form, about the social and medical insurance provided by this article as well as the particularities referred to charging the income tax from the salary until the date of obtaining the title of the resident of the park and in case of new employees – until employment.

RESIDENTS’ COMMITMENTS

 

What commitments does the company have towards the Park administration?

From the moment of obtaining the resident status, the company has 4 obligations towards the Park administration:

1) Payment of the monthly fee.

2) Submission of quarterly report to the park administration.

3) Submission of the annual audit results confirming the compliance with Law No. 77/2016.

4) Notification of the Park administration of all changes operated in the statutory documents of the company (such as change of the name of the company, change of the administrator, legal address, subdivision of the company, etc.)

RESIDENT FEE

 

What data are used to calculate the fee of the resident company?

The residency fee is calculated according to the formula*, stipulated in the Law nr.77/2016, and is based on three variables:

  • Annual budget of the Park, approved at the annual meeting of residents, and published in the annual report of “Moldova IT Park”;
  • Total forecasted revenue of all active resident companies for the current year (this monthly change is conditioned by variation in the number of resident companies and their total forecasted revenue);
  • Forecasted revenue of each company (subject for calculation) for the current year (declared by the company).

When the resident's fee should be paid?

The fee has to be paid on the monthly basis until the 20th of each month, or in advance, at the discretion of the resident.

Does the Park administration issue an invoice for the fee payment?

The Park administration does not provide invoices for the resident fee. It is paid based on the Clause 3.2 of the contract with the Park administration.

Once in a semester, the Park administration provides the Payment Reconciliation Report to each resident.

How frequently does this fee change?

This fee is recalculated at the end of each financial year, based on real annual revenue provided as a result of mandatory annual verification of compliance with the Law № 77/2016.

After the recalculation process, in case of identified overpayment the difference remains in the company account and covers future fee payments, in case of underpayment the resident is obliged to cover the identified difference.

Also, at the end of each year, a Park resident provides a forecasted revenue for the upcoming year. Based on this data the resident’s fee for the next year is determined.

During the year, the fee can be changed according to the Park Regulation (p. 22). In line with this, in case the amount of resident’s fee has decreased by 20%, the company may request to sign an additional agreement and adjust the fee accordingly.

How to pay the monthly fee?

The fee is paid only via bank transfer to the Park’s bank account, using bank details specified in the contract.

QUARTERLY REPORT

 

In what format and when should the quarterly report be submitted?

The report to the Park shall be submitted electronically with the electronic signature of the administrator / chief accountant. For this purpose, the official e-mail of Park’s administration is used (office@moldovaitpark.md).

According to the contract, report is submitted quarterly until the 25th of the month following the reporting period. That is, for the first quarter – until April 25, for the second quarter – until July 25, for the third quarter – until October 25, for the fourth quarter – until January 25.

Companies that have not operated in the new tax regime during the entire reporting period, report only for the months they benefited from the single tax regime. Thus, the company that signed the contract in January will include in the 1st quarter report data only for February and March.

Where can I find the guidliness on preparing the quarterly report?

In order to provide answers to the frequently asked questions faced in the process of filling in the quarterly report, the administration developed guidliness meant to offer the necessarry answers.  This guide, as well as the .pdf and .xls report forms, can be found in Useful documents on the page dedicated to Current Residents.

ANNUAL VERIFICATION

 

Where the obligation to carry out an annual verification is stated?

The obligation of residents to carry out an annual audit is stated in the Article 18 of the Law No. 77/2016

Where can I find the criteria and deadline for carrying out the annual verification?

This process is regulated by the Park administration Decision No.1. Thus, the 5 criteria of verification stipulated in this Decision are explained in the Guidelines and directed by a simplified reporting form and can be found in Useful documents on the page dedicated to Current Residents.

Who conducts the resident company verification?

The annual verification is carried out by an audit company/auditor accredited on the territory of the Republic of Moldova. The resident company has the right to choose an audit company/auditor and shall cover all the audit related costs.

What is the form of annual verification report to be submitted?

The result of the verification shall be submitted in a simplified form provided by administration. In case of applying the electronic signatures by all parties involved in process, it shall be submitted electronically (at office@moldovaitpark.md) or in the paper form, in case of handwritten signatures.

When does a Park resident have to submit the annual verification report?

The resident company submits the result of the annual verification after closing the financial year, but not later than March 15.

What timeline is subject to verification?

The timeframe of operation in the single tax regime is subject to verification under first 4 criteria. The 5th criterion refers to the company turnover generated during entire year. This last criterion shall support the administration in the mandatory fee recalculation process.

SINGLE TAX

 

Who is subject to the single tax?

According to part (1) of the Article 368 of the Tax Code, the subject to single tax is any legal entity/individual registered as subject of entrepreneurial activity in the Republic of Moldova and is compliant with the conditions provided by the legislation on information technology parks.

Subsequently, in line with the Article 368(2) of the Tax Code, in order to determine that 70% or more of sales revenue of the Park resident is generated from main activity (as defined in the Law No. 77/2016), the ratio between the amount of revenue from the sale of services/works allowed in the Park (listed in the Article 8 of the Law No. 77/2016) and the total sales revenue reflected in the accounting is calculated. In this case, both indicators related to the sales revenue are determined on the monthly basis as a cumulative sum from the beginning of the calendar year or from the beginning of company’s activity in the Park.

What is the object of a single tax?

According to part (1) of Article 369 of the Tax Code, the object of single tax is the sales revenue reflected in monthly accounting. Its amount is determined in accordance with the current legislation such as the National Accounting Standards or, if necessary, IFRS.

At the same time, according to part (2) of the mentioned article, the minimum amount of the single tax is calculated based on the number of employees and the size of the average monthly salary in the economy, projected for the year to which the tax period relates. The employees subject to this calculation worked on an individual employment contract for at least one day during this tax period.

At the same time, in order to apply the single tax, the cost of goods returned or the granted discount reduces the size of the object of taxation in the tax period in which the goods were returned (discount applied), including in the case when the sales are reflected in previous years (part (3) of Art. 369 of the Tax Code).

How is the single tax calculated?

According to part (1) of Article 370 of the Tax Code, the rate of single tax is 7% of the object of taxation, but not less than the minimum amount established in part (2) of this article. Thus, the minimum amount of single tax is determined on a monthly basis for each employee and is 30% of the average monthly salary in the economy, projected for the relevant year.

Ex. 1 (Form IU17):

 

Number of employees (month X) – 20 persons.

Average monthly salary in the economy (2019) – 6 975 lei.

Company’s sales revenue (month X) – 600 000 lei.

 

In this case, the following results are obtained:

  • The minimum amount of single tax for month X (20*6 975*30%) = 41 850 lei.
  • 7% on the sales revenue for month X (600 000 lei*7%) = 42 000 lei.

Thus, the company pays a single tax for the month X in amount of 42 000 lei.

 

Ex. 2 (Form IU17):

 

Number of employees (month X) – 20 persons.

Average monthly salary in the economy (2019) – 6 975 lei.

Company’s sales revenue (month X) – 550 000 lei.

 

In this case, the following results are obtained:

  • The minimum amount of single tax for month X (20*6 975*30%) = 41 850 lei.
  • 7% on the sales revenue for month X (550 000 lei*7%) = 38 500 lei.

Thus, the company pays a single tax for the month X in amount of the minimum threshold, that is  41 850 lei.

 

Where is the single tax paid?

 

According to part (1) of Article 373 of the Tax Code, the calculation and reporting of the single tax is carried out on a monthly basis by Park residents by submitting a report to the State Tax Service until the 25th of the month following the reporting period. The form and procedure for filling in this report are approved by the Ministry of Finance.

In accordance with part (2) of the mentioned article, the single tax is paid to the treasury account by the Park residents to the state budget on a monthly basis until the 25th of the next month. The IBAN code is generated for this purpose by the Ministry of Finance according to the location of the company. The transfered amount is distributed in accordance with the provisions of the Article 14 of the Law on Information Technology Parks № 77/2016. Taxpayers calculate and pay a single tax to the state budget according to the location of their head office (legal address).

At the same time, according to part (4) of the same article, the report shall be submitted with mandatory use of automated methods of electronic reporting, in the manner prescribed by part (21) of article 187 of the Tax Code.

What taxes, fees and contributions are included in the single tax?

According to Article 372 (1) of the Tax Code, the following taxes, fees and contributions are included in the single tax:

  • Income tax on entrepreneurial activity
  • Income tax on salary
  • Compulsory state social insurance contributions from the employees and employers
  • Compulsory health insurance premiums from the employees and employers
  • Local taxes
  • Real estate tax
  • Road tax for the use of motor vehicles registered in the Republic of Moldova

What is the basis for calculating the employees’ vacation allowance?

Unlike payments from the state budget, which are based on the insured income of the Park’s residents’ employees (60% of the average salary in the economy), the vacation allowance is calculated under general regime provisions.

What type of tax regime shall the Park resident apply in case of payments to individuals providing services?

According to Article 372 (2) of the Tax Code, the single tax does not include the income tax withheld at the source of payment stated in the Article 88 (5), Articles 89, 90, 901 and 91, state social insurance contributions and health insurance contributions calculated/retained in case of payments to individuals under other labor remuneration forms.

Thus, the income of a person who does not carry out entrepreneurial activity, received for the provision of services and/or performance of works (part (5) art.88 of the Tax Code), is not included in the single tax.

Shall the resident submit reports to other government entities?

IT Park residents have to submit the following reports to the State Tax Service:

  1. Information on salaries and other payments made by a resident of the Information Technology Park in favor of employees (ISAPTI 17 Form), approved by Decree of the Ministry of Finance No. 135 of November 06, 2017;
  2. Information on salaries and other payments made by a resident of the Information Technology Park in favor of employee, approved by Decree of the Ministry of Finance No. 135 of November 06, 2017;
  3. c) Declaration on Income Tax of persons exercising professional activity in the sphere of Justice, approved by the Decree on Approval of the Standard Form of the Declaration on Income Tax of persons exercising professional activity in the sphere of Justice No. 09 as of January 15, 2018;
  4. d) Declaration on Single Tax, approved by Decree of the Ministry of Finance No. 135 of November 06, 2017;

At the same time, it should be noted that according to Article 374, part 2, of the Tax Code, reports, declarations and other acts related to taxes, contributions and other mandatory payments to the state budget, not included in the single tax have to be submitted to the relevant authorities in the prescribed manner, in accordance with Article 372 (2) of the Tax Code.

Where can I find the guidelines for filling in tax reports related to the single tax?

The guidelines for filling in tax reports can be downloaded here: Download the PDF.

RESIDENTS’ EMPLOYEES

 

How does the salary of an employee of a Park resident company change after transition to a new tax regime?

Remuneration payments received by employees of IT Park residents are considered to be ultimately taxed and do not require additional declaration and payment of income tax (Art. 377 (1) of the TC of the RM). For the period of application of the single tax, all the exemptions related to salary payments made by Park residents cannot be provided under the Articles 33-36. Unused exemptions in this case cannot be transferred to the spouse.

How does the insured income of an employee change?

Park residents’ employees benefit from all types of social insurance benefits paid from the state social insurance budget in accordance with the legislation in force. The insured monthly income of these employees is 60% of the average monthly salary in the economy projected for the respective year. Park residents’ employees are granted the status of insured persons within the compulsory health insurance system, based on the updated information provided in the reporting on the income tax, compulsory health insurance contributions and compulsory state social insurance contributions, retained and accrued according to the legislation in force (Art. 16 of the Law No. 77/2016).

What happens to the employee personal income tax exemptions in case of resident companies?

In accordance with the Article 351 of the Tax Code, individuals who received income during the single tax period, forfeit of the right to use the income tax exemptions established under Articles 33, 34 and 35 of the Tax Code.

In case of transition from the standard tax regime established under Title II of the Tax Code to the special regime established under Chapter 1 of Title X of the Tax Code, employers are obliged to recalculate the income tax of employees, excluding the amount of exemptions that they used (established under Articles 33-35 of the Tax Code) prior to the transition to a special tax regime (p.361 of Chapter IV of the Regulation approved by Government Decision No. 697 of August 22, 2014).

Therefore, in a situation where an individual was employed part-time by an IT park resident company during the tax period, and considering the fact that he/she will not be entitled to exemptions in accordance with Articles 33-35 of the Tax Code, he/she has an obligation to submit to a non-resident IT park employer a declaration for non-use of income tax benefits.

Are the employees notified about the company's decision to join the Park?

According to paragraph 3 of the Article 16 of the Law № 77/2016, the company shall notify its employees, in written form, about the social and medical insurance provided by this article as well as the particularities referred to charging the income tax from the salary until the date of obtaining the title of the resident of the Park and in case of new employees – until employment.

Is it necessary to present the employees notification document to the Park administration?

The act used for notifying the employees shall be kept within the resident company and is required for the case any inspection by the supervisory authorities occurs.

How are individuals paid for services provided (under a service contract)?

According to Article 372 (2) of the Tax Code, the single tax does not include the income tax withheld at the source of payment established in accordance with Article 88 (5), Articles 89, 90, 901 and 91, state social insurance contributions and health insurance contributions calculated/retained in case of payments to individuals under other labor remuneration forms.

Thus, the income of a person who does not carry out entrepreneurial activity, received for the provision of services and/or performance of works (part (5) art.88 of the Tax Code), is not included in the single tax.

ADMINISTRATIVE ISSUES

 

Are there any mechanisms to support the employment process in resident companies?

According to the current legislation, the Park administration has no right to interfere in the internal/organizational processes of the resident companies.

In order to facilitate the interactions between companies and potential employees, the “Park as a Platform” has been developed, providing the necessary information and contact details to identify the suitable options and establish necessary links.

What is the procedure of employing foreign citizens in a company?

Internal processes of attracting and employing a foreign specialist are carried out directly by the company.

However, the IT-Visa program was put at the companies’ disposal in order to simplify the process of obtaining a temporary residence permit for foreign specialists. The program supports granting of a residency permit for IT specialists for 2 years and for managers for 4 years, with the possibility of further extension.

More detailed information on the application process can be found in the detailed infographic.

How to add or remove a contact from the Park administration mailing list?

In order to operate changes to the Park mailing list, the official e-mail with an electronically signed standardized request shall be submitted to the administration official e-mail (office@moldovaitpark.md).

The standardized request form can be downloaded from the Useful documents section dedicated to the Current Residents of the Park.

What is the procedure for the early cancellation of the contract with the Park administration?

The resident company can request a contract cancellation prior to the initially stipulated timelines.

For this purpose, the standardized request for cancellation shall be submitted 30 days prior to the intended cancellation date. Lack of any debts of the company in relation to the administration of the Park (payment of fees, submission of reports) is a mandatory condition for initiation of the cancellation process.

The standardized request form can be downloaded from the Useful documents section dedicated to the Current Residents of the Park.

After the request examination, the administration of the Park sends a draft termination agreement and informs about the date and time proposed for signing it.

For other single tax related questions, please see the Generalized Tax Practice Base (romanian version):
https://www.fisc.md/ShowQuestions.aspx?category=77c816e1-fdcd-4785-b204-7d4f50193d13&nr=37

If You Haven’t Found A Response In The Above Questions, Please Get In Touch With Us:office@moldovaitpark.md