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Moldovan Tax Regime Offers Competitive Incentives for IT Businesses
The Republic of Moldova has implemented a unique tax regime aimed at stimulating growth and investment in the Information Technology (IT) sector. According to recent changes to the country’s fiscal code, businesses operating in this sector are subject to a preferential corporate income tax rate of 7%.
Why Moldova is an Attractive Destination for IT Businesses
- Strategic location between Europe and Asia
- Highly skilled workforce
Free Economic Zones Offer Additional Tax Incentives
Moldova’s Free Economic Zones (FEZ) offer attractive tax incentives to businesses operating within these designated areas. Companies registered in FEZ are subject to a corporate income tax rate of 6%, which can be reduced to 0% under certain conditions.
Simplified Tax Regime for Small Businesses
The Moldovan government has introduced a simplified tax regime for small businesses that are not registered for Value-Added Tax (VAT). These companies are subject to a 4% tax on their taxable turnover, providing a more straightforward tax system compared to the standard VAT regime.
Personal Income Tax and VAT Rates
- Moldova uses a progressive personal income tax rate
- Standard VAT rate of 20%
- Reduced rates for certain categories of goods and services (e.g., food products, medicines, natural gas)
Compliance and Bank Account Opening
Companies operating in Moldova are required to comply with the country’s tax laws and regulations. This includes regular declarations and payments of VAT, income tax, and other taxes.
Simplified Process for Company Formation
Incorpore provides a streamlined approach to company formation in Moldova, handling every aspect of the process from initial documentation to regular business operations. By entrusting Incorpore with your company’s legal needs, you can focus on the strategic aspects of your business while ensuring compliance with all relevant laws and regulations.
Get in Touch
Contact Incorpore today to learn more about our legal services in Moldova and how we can assist with your company formation and tax compliance needs.