Have you been wondering how to join the Moldova IT Park if you’re not a resident, what documents would you have to submit or what are the fees you’ll have to pay?
Well, here’s an exhaustive list of 20 answers to all the questions that might come to your mind!
1. How can I integrate my company in the IT park?
Cost: 200 EUR.
Deadline: The registration period is one month and the IT PARK membership is received from the first day of the month following the submission of documents.
Tax regime: A single single tax, either 7% of monthly sales or ~ 130 EUR per employee.
2. Are there any restrictions for the number of employees?
No, any company can become a resident of the Park, regardless of the number of employees.
3. Can I register a legal address or 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.
4. What documents should I submit?
-Application, signed by electronic signature (or on paper form in case of handwritten signature);
-Scanned copy of the Charter of the company;
-Scanned copy of the Extract from the State Register of Legal Entities;
-Scanned copy of the Decision on registration of the legal entity;
-Scanned copy of the Decision on modifications (in case of changes in the statutory documents);
-Power of Attorney (if necessary).
5. Does the company turnover matter?
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.
6. When does my 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.
7. Are there any obligations I shall comply with before signing the contract?
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.
8. What commitments will my company have towards the Park’s 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.)
9. When is the deadline for the resident fees?
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.
10. When and how should I submit the quarterly report?
The report to the Park shall be submitted electronically with the electronic signature of the administrator / chief accountant. For this purpose, the official email 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.
11. 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.
12. Am I a 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.
13. What taxes, fees and contributions does the single tax include?
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
14. Can I stay in the Park if I have generated no income for two or more months?
The company can continue its activity in the Park, even if zero income is registered for a long period of time. Nevertheless, the company is obliged to pay a single tax equal to the minimum amount provided by law, as well as to submit all the necessary reports.
15. Shall I submit reports to other government entities?
IT Park residents have to submit the following reports to the State Tax Service:
- 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;
- 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;
- 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;
- 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.
16. Will my employees be notified about my 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.
17. Is it necessary to present the employee notification document?
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.
18. What is the procedure of employing foreign citizens?
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.
19. How to add or remove a contract from the IT Park mailing list?
In order to operate changes to the Park mailing list, the official email with an electronically signed standardized request shall be submitted to the administration official email (office@moldovaitpark.md).
The standardized request form can be downloaded from the Useful documents section dedicated to the Current Residents of the Park.
20. How to early cancel my 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.
We hope these answers have enlightened have given you some clarity regarding the most frequent questions regarding the Moldova IT Park!
