IT companies will enjoy tax concessions

The economic entities working in the information technology (IT) sector will benefit from tax concessions. The parliamentary commission on economy, budget and finance approved a legislative initiative that provides tax concessions to IT companies, especially in working out software, Info-Prim Neo reports, quoting a communiqué from Parliament. According to the initiative, the employers are to pay contributions to the social fund, based on two monthly salary funds, while the young employees will pay the income tax from two average salaries in the economy. The incomes exceeding 7 100 lei will not be taxed. This concession will represent for young people a precondition for developing new businesses and new software products in the energy sector, industry, and agriculture, where the need for computerized programs has increased. The authors of the bills said the tax concessions provided in Moldova are the most advantageous not only in the region, but in the whole world. “The aim of this project is to motivate the IT companies to work in the country and to create optimal work conditions for them at home, paying attractive salaries to employees. This is the only branch of the industry that promotes exports without taking something out of the country. Instead, it attracts money that augments the state budget. These tax concessions will make the IT companies more competitive and the development of this sector will be encouraged,” said the commission’s head Veaceslav Ionita. The commission on economy, budget and finance will submit this bill to Parliament for adoption in the February 24 sitting.