ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of December 23, 2024 No. 875

About approval of the Scheme of regional government assistance for the investments realized in the Republic of Moldova

Based on article 49-3 of the Tax Code No. 1163/1997 (repeated publication: The official monitor of the Republic of Moldova, 2007, special release), with subsequent changes, and Item j) parts (1) article 5 of the Law on government assistance No. 139/2012 (The official monitor of the Republic of Moldova, 2012, No. 166-169a, the Art. 565), with subsequent changes, the Government DECIDES:

1. Approve the Scheme of regional government assistance for the investments realized in the Republic of Moldova it (is applied).

2. This resolution becomes effective since January 1, 2025.

Approved by the Order of the Government of the Republic of Moldova of December 23, 2024 No. 875

The scheme of regional government assistance for investments

I. General provisions

1. This Scheme of regional government assistance for investments (further – the Scheme) establishes the procedure, methods and conditions of provision of government assistance in the form of partial exemption of tax on the income and grant to the companies of processing industry realizing investments in the Republic of Moldova (in the territories controlled by the constitutional authorities) according to the priority sectors listed in appendix No. 1.

The government assistance provided by this Scheme is classified according to the Regulations about assessment of government assistance for regional development approved by the Resolution of Competition council No. 2 of October 15, 2020 as the help in the zone "with" which is unconditional and is applied to the beneficiaries, the corresponding conditions of the acceptability registered in all administrative and territorial units.

2. For the purposes of this Scheme the following concepts are used:

2.1. the supplier of regional government assistance for investments (further – the supplier) – the Ministry of Economic Development and digitalizations;

2.2. the beneficiary of regional government assistance (further – the beneficiary) – any company corresponding to the conditions established in Item 17;

2.3. the act of provision of regional government assistance – the legal document concluded based on the agreement between the beneficiary of regional government assistance and its supplier, establishing legal relations between them, including the rights and obligations of the Parties;

2.4. intensity of the help – the discounted cost of regional government assistance expressed percentage of the discounted cost of the acceptable costs established according to the regulations approved by Competition council;

2.5. equivalent of gross subsidy – the discounted cost of regional government assistance expressed percentage of the discounted cost of acceptable costs expected date of assistance based on the base rate applied for the corresponding date;

2.6. the company – any business entity having own name (name), being legal entity or physical person, founded by the entrepreneur according to the procedure, established by the legislation;

2.7. economic activity – any activities including provision of goods, services and works in the market;

2.8. initial investment:

2.8.1. the investment into tangible and intangible assets connected with one or several of the following types of activity:

2.8.1.1. organization of the new company;

2.8.1.2. expansion of opportunities of the existing company;

2.8.1.3. diversification of production of economic unit towards products or services which were not made by this unit earlier; or

2.8.1.4. fundamental change of general production process of product (products) or general procedure for provision of service (services) connected with investments into economic unit; or

2.8.2. acquisition of the assets belonging to the company which was closed or would be closed if it was not acquired. Simple share purchase of the company is not initial investment. Besides, the acquisitions performed only for the purpose of replacement of the existing assets without introduction of new elements or assistance of diversification of production or to expansion of enterprise capacities are not initial investments;

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