Dear residents,

We inform you that today was published in the Official Monitor the Law amending Law 77 regarding information technology parks. The new provisions will enter into force on 12 February 2024 with some exceptions, mentioned below.

The new changes concern the following impact provisions for MITP residents:

1. Extending the functioning term of the IT park from 10 to 20 years - for the amendment to be into force, the Government has to adjust the provisions of the subsidiary framework, namely the provisions of Government Decision no. 1144 of 20.12.2017 regarding the creation of the information technology park "Moldova IT Park".
2. Extending the state guarantee until 2035, including – the amendment, provides that regardless of any changes in the special tax regime, park residents are assured by the state of keeping the same tax formula for the next 12 years.
3. The establishment of a Park Council, as a collegial body created for the purpose of coordinating the park's activity. The Council will be composed of 4 representatives appointed by the Ministry of Economic Development and Digitalization and 5 representatives delegated by the General Assembly of Residents - members with deliberative voting rights, as well as representatives of development partners and the associative sector - members with observer status.

The Council's competence will include the following main attributions:

1.   coordinates the annual activity plan of the Park Administration, as well as the park development strategy;
2.   reviews the semi-annual and annual reports on the activity of the park and its residents;
3.   coordinates the annual budget project of the Park Administration;
4.   coordinates the indicators subject to annual verification;
5.   coordinates the risk management system applied within the park administration.

The Council will activate on the basis of a Regulation approved by the Government, the amendment being applicable from 1 January 2025.

4. Completion of the eligible activities to be undertaken within the IT park with 2 new types intended exclusively for export:

• call center activities (82.20), including those based on any technology/customer communication channel (contact center), exclusively for export;
• other labour supply services (78.30), exclusively for export.

The activities that are qualified for the new eligible types should be analysed in accordance with the Classifier of Activities in the Economy of Moldova approved by the Order of the National Bureau of Statistics no. 28 of 07.05.2019 (CAEM rev.2) and the Statistical Classifier of Products (goods and services) of the Republic of Moldova (CSPM Rev.2) approved by Decision of the Board of the National Bureau of Statistics no. 6 of 07.10.2014, with the exclusive condition that such activities are intended only for export.

The Law was the result of an approval and re-approval process carried out during 2022-2023, through which the Administration supported the changes related to the continuity and operation of MITP in predictable terms - the extension of the park’s term and the state guarantee, in the unchanged conditions of single tax and MITP regime for the further development of the IT industry.

In order to implement the provisions, the Government has to adjust within 6 months the Decision no. 1144 of 20.12.2017 regarding the creation of the park for information technology "Moldova IT park", as well as to establish the rules of the Council’s park activity, approving a dedicated Regulation during the year 2024.

Regards,

The MITP Team

Source: Official Monitor of the Republic of Moldova no. 13-16 din 12-01-2024

*Disclaimer: Tax & Legal Pulse is prepared by the Moldova Innovation Technology Park team as a newsletter and represents a summary of the latest legislative changes. The information included in the bulletin does not constitute legal and/or tax advice. For any unclarities or before deciding on further actions, we recommend that you review the regulatory provisions or seek appropriate advice.