ECONOMIC COUNCIL TO THE PRIME MINISTER OF THE RM

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund
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Measures to stop brain drain from IT

December 29, 2020 – The Parliament extended by another 3 years the term of application of the fiscal facilities to the income tax provided for the employees whose basic activity is “realization of programs”.

The deadline for applying these facilities expires in 2020. The business associations in the field addressed this topic during the elaboration by the Secretariat of the Economic Council of the Impact Study of the COVID-19 pandemic on the economic sectors. The document was supported by the EBRD, UK Government’s Good Governance Fund and the International Finance Corporation.

Within this research, a Matrix with economic recovery policies was developed. Among the proposed measures is the extension of the application of the fiscal facilities to the income tax provided for the employees whose basic activity is “realization of programs”, approved by Parliament.

These benefits will be reflected on about 1000 non-resident IT companies of the IT park with about 6000 employees. The turnover of these companies amounts to about 3 billion lei.

The government is taking such action to ensure a predictable business environment and ensure a favorable investment climate in the information technology industry, but also because it wants to help increase the number of these specialists in Moldova.

The total amount of revenues from the provision of ICT services in 2019 is 860 million US dollars. There are 1,687 companies operating in the Moldovan IT industry.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

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