The IT industry in the Republic of Moldova is continuously developing. Many specialists switch to freelancing, open their own startups and look for ways to grow independently. In the process, the issue of legalising their income arises. Even though the small business sector is not as developed as in the West, there are still several different possibilities to record and register one's income.
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Natural person
It means that you are self-employed, receiving money on a card from customers and not registering any business. That is, you have to pay tax on all income from business activities and file an income tax return once a year by 31 March. The tax is 12%.
You can pay tax and submit a declaration online. To pay tax, go to the website of state services servicii.fisc.md, enter IDNP and pay 12% on the income earned for the year.
You can submit your declaration online at https://sfs.md/, Form CET18.
Who's good for it?
In general, you should use this method if you occasionally receive third-party income. For example, a one-off service or an order from a friend. This can also include seasonal work or freelancing on an exchange. If you work on a project basis and occasionally provide paid services, this option will legalise your income without the need to register your business.
Individual Entrepreneur
Same as a sole proprietorship, but now you can carry out entrepreneurial activities. Full control over your business.
Since you are self-employed, you must also pay all compulsory insurance contributions individually. It is important that with this form of registration you have the right to formalise not only your income, but also to hire employees.
Taxes for an Individual Entrepreneur
Social Fund - fixed amount, determined in the budget for each year. In 2024 it is equal to 17522 lei. It is paid monthly until the 25th day of the month following the reporting month in the amount of 1/12 of the annual amount.
Health insurance - is a fixed amount and also changes every year. In 2024 it is equal to 2928 lei and is paid until 31 March of the current year.
Income tax is 12%. The base is calculated as follows : (all income-all expenses-personal exemption (in 2024 =27000, if there are children, plus 9000 for each child))) *12%
Local taxesAt a minimum, a land improvement tax. It is calculated for each employee on a fixed amount and is paid quarterly in the amount of ¼ of the fixed amount. For the year 2024 for the city of Chisinau is 184 lei per year.
IE registration
To register your own business, you need to follow the following steps:
- Choose a conveniently located office on the official the website of the State Services Agency. It is necessary to pre-register for a specific day by calling the telephone number of the selected centre.
- You need your bulletin (internal passport). Cost: 364 + 440 lei for 24 hours or 1456 + 440 lei for 4 hours.
- A statutory fund is not necessary.
Who's good for it?
Freelancers and solo professionals. If you are self-employed and want to officially contract and invoice. In essence, is an entry point for the business. Requires no investment or bureaucracy, minimises the tax burden in the event of downtime for us and our business.
It is worth noting that, unlike SRL, all responsibility for debts falls on the shoulders of the individual.
Limited Liability Company (SRL)
Another income registration option for an IT professional is to set up a limited company. Big Artillery. If you plan to hire employees, receive external funding and constantly expand, this is for you. The main difference from sole proprietorship is the possibility to work with partners.
An SRL is bound to have an accounting and, in addition, a list of taxes to be paid.
Taxes for SRL
VAT - 20% amounts of sales and rendering of services on the territory of Moldova. Declared monthly and paid monthly until the 25th day of the month following the reporting month.
Social Fund - 24% of the salary fund. Paid monthly by the 25th day of the month following the reporting month.
Medicine - 9% of payroll. Paid on the payroll date.
Income tax from wages is 12%. The base for calculation is calculated as follows: (Wage Amount - Medical - Current Month's Personal Exemption*) *12%.
*Personal exemption in 2024 =27,000 lei per year. If there are children, plus 9,000 per year for each child.
Income tax from business and professional activities is 12%. The tax base is calculated as follows: (All income - All expenses)*12% and is payable by 31 March of the following year. At least 80% of the estimated annual tax must be paid in advance during the year.
Local taxesAt a minimum, a land improvement tax. It is calculated for each employee on a fixed amount and is paid quarterly in the amount of ¼ of the fixed amount. For the year 2024 for the city of Chisinau is 184 lei per year.
SRL registrations
In order to register SRL you need to pre-register at any convenient office of the State Services Agency. A few days after registration you will receive a certificate with your company's data (Extras).
The following documents and data are required for SRL registration:
- Identity card (bouletin)
- Legal address of the company
- Name of the future company
- Codes from the Classification of Activities in the Moldovan Economy (CAEM)
- Minimum authorised capital of 100 lei
Also, it is necessary to get an electronic signature in several ways. More detailed information on the official website website of the State Tax Service.
The registration of SRL and electronic signature takes about two weeks on average and costs approximately 2000 lei.
Who's good for it?
Companies with potential for rapid growth and plans to attract investment. Provides a more serious structure and avoids personal liability for the company's debts. SRL gives more opportunities for scaling and working with other legal entities.
Residence in IT Park
Moldova IT Park (MITP) is a virtual IT park that aims to support the IT industry. Officially works with the government to promote the development of this sector.
The main advantage of opening a business in an IT park is the lowest income tax in Europe - 7%. But not less than 4,110 lei per month for each employee. It is also worth considering that social insurance, despite your salary, will be average for Moldova.
It is possible to register both IE and SRL in the IT park. The main condition is that 70% of the income must be related to IT or a similar field.
Taxes for IT park residents
The single tax is 7% of the resident's sales. At the same time, the minimum amount of the single tax, determined monthly for each employee, is 30% of the average monthly salary for the economy, projected for the tax period of the respective tax. In 2024, this amount is 13700 lei.
Single tax is calculated and declared monthly in the following order:
Amount 1 = All sales revenue * 7%.
Amount 2 = Number of employees during the tax period hired under labour contracts * Average monthly wage by economy * 30%
Let's assume that all your sales income is 100,000 lei and you have 2 employees.
Then, Amount 1 = 100000 * 7% =7000 and Amount 2 = 1*13700*30% = 4110 per employee.
The amount of the single tax payable is chosen between Amount 1 and Amount 2, the maximum amount between them. Accordingly, the single tax will amount to 7000 lei.
The single tax is paid monthly by the 25th day of the month following the reporting month.
VAT - 20% on the amount of sales and rendering of services within Moldova. 0% on income derived from rendering services outside Moldova. It is declared monthly and paid monthly until the 25th day of the month following the reporting month.
Local taxes are included in the unified tax.
From 2026, the single tax will not include local levies, property tax and road tax - the IT park employee will pay them separately.
Registration procedure
- To register for the IT Park, you need to apply at IT Park website.
- You will receive a response within 10 business days about the park administration's decision.
- If your application is accepted, you will have to sign a contract within 30 calendar days. The whole procedure is carried out online through the office.
Who's good for it?
Ideal for IT companies and start-ups that want to minimise their tax burden. If your business is closely related to the IT world and you plan to develop intensively, registration as a resident will offer significant tax advantages and support.
Working with an IT company
Those who do not want to register as a sole proprietorship or set up an LLC may want to work with an IT company. This can range from full-time employment to freelance or contract services.
For this you will have to study vacancies in Moldovan companies. There are a lot of opportunities nowadays. And the IT sector in Moldova offers a wealth of opportunities job selection.
Who's good for it?
For those who are looking for stability and are not ready to deal with the paperwork associated with running a business. The optimal choice if you are looking for a reliable income, social guarantees and see your future in professional development as an ordinary employee.
To summarise, choosing a particular form of formalising your income depends on your goals, project scope and financial capacity.
IE is suitable for those who are just starting out or prefer to work alone. SRL registration is advisable if you plan to expand your staff and attract investment. Residency in an IT park will ensure low taxes, but will require fulfilment of certain selection criteria.
Whatever your choice, we advise you to carefully evaluate the pros and cons before making a decision that will determine your professional future in the IT industry.
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