Moldova seeks to keep 7% tax rate for IT companies after EU accession
The Republic of Moldova aims to maintain the preferential tax regime for companies within the Moldova IT Park even after joining the European Union. The authorities have requested a transition period of five to six years, during which the park’s residents would continue to benefit from the existing incentives. Currently, approximately 3,000 companies pay a single 7% tax rate, guaranteed by law until 2035. A framework for the future of this tax regime is expected to be agreed upon with the European Commission by the end of 2027.
Maintaining tax incentives is one of the topics under discussion as preparations are made for negotiations on Chapter 10 – "Information Society and Media." The authorities are seeking a solution that would allow for the retention of favorable conditions for IT companies without violating European rules on state aid. The program "Vector European", broadcast by Moldova 1, addressed this subject.
The tax regime of the Moldova IT Park is considered one of the key instruments that have contributed to the development of the information technology sector. The number of resident companies continues to grow, and authorities aim to ensure that alignment with the European Union does not negatively affect their competitiveness.
"We have a law dedicated to the IT park—specifically the Moldova IT Park—which offers a 7% [tax rate] to resident companies. There are 3,000 such companies, and the number keeps growing—in contrast to the global trend, where companies are shrinking or significantly reducing staff. Here, we continue to see growth, which indicates that we have a very fertile environment", stated Michelle Iliev, State Secretary at the Ministry of Economic Development and Digitalization.
Currently, an inter-institutional working group is analyzing two options for the future of the IT park. The first involves adapting the existing incentives to comply with European state-aid standards. The second focuses on maintaining an autonomous tax regime that could remain in place following EU accession.
These discussions matter because state support for companies extends beyond direct funding. Tax incentives can also be considered forms of state aid, which means they must be analyzed in the context of European legislation.
"The negotiation position included a request for a transitional period regarding the Moldova IT Park. The discussion we are currently having—through the lens of state aid—aims, first and foremost, to establish that this constitutes a form of state aid, and subsequently to identify and disentangle all the activities provided as state support. Such support is not limited to grants; it can also encompass tax exemptions or other forms of state-provided assistance. Essentially, it must involve public funds," explained Alina Cebotariov, Chair of the Competition Council.
A technical study on the future of the tax regime is set to be completed by December 2026. After that, the authorities will continue discussions with European institutions, aiming to reach a solution agreed with the European Commission by the end of 2027.
For now, the request for a transitional period is not a formal decision by the European Union. The conditions under which these tax incentives might be maintained following accession remain to be negotiated.
The Moldova IT Park was established to support the development of the IT industry and attract investment. Its residents benefit from a single 7% tax, which replaces several other levies and contributions. IT sector service exports account for approximately one-quarter of the Republic of Moldova’s total exports.
