At present one of the primary tasks of the Government is to attract investments and create a favorable business climate for all investors both foreign and local ones.
In this connection, all necessary measures are being taken to stimulate the business activity and improve the investment climate focusing on geographical position of the country, skilled labor resources, fertile soils and participation of the country in free trade zones of the CIS countries and the countries of South Eastern Europe.
The investment attractiveness of Moldova is also due to the fact that since June 2001 the country is a member of WTO and of the Stability Pact. The Republic of Moldova signed the Partnership and Cooperation Agreement with European Union (EU). The country has access on the markets through the General System of Preferences (GSP+) with EU, Switzerland, Japan and others. Therefore, the EU has given the free access, without payment of the customs duties, on their own home markets of 7200 groups of goods.
Recently adopted legislative acts (the Law on investments in entrepreneurship activity, the Law on microfinance organizations, the Law on electronic document and digital signature, the Law on electronic trade, the Law on Leasing) and the new drafts of the laws in the field of economy have one single purpose — to ensure a more balanced and more predictable economic policy of the state and simplify the establishment and the operation of the enterprises, as well as stimulate new investments.
Attractive for the investment projects in the sphere of industry are the free economic zones, providing a range of tax and customs privileges and state warranties to their residents. At present, the volume of the investments, attracted in free economic zones has toped 76 mln. USD.
In addition, attractive to invest is "Giurgiulesti" International Free Port, that is now being built.
The domestic tax legislation in force provides for a series of investment-related facilities concerning:
- income tax
- value added tax (VAT)
- customs duties
The review of tax incentives and other tax encouragements for 2006 and 2007 is presented in the following tables:
- 1. Tax incentives in 2006
- 2. Additional tax incentives in 2007
- 3. Tax incentives granted to free economic zones (FEZ)
- 4. Additional tax encouragements in 2007