ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of December 23, 2024 No. 882

About approval of the Scheme of regional government assistance to the companies of free economic zones

Based on part (2) article 49 of the Tax Code of the Republic of Moldova No. 1163/1997 (repeated publication: The official monitor of the Republic of Moldova, special release of February 8, 2007), with subsequent changes, and parts (2) article 14 of the Law No. 440/2001 on free enterprise zones (The official monitor of the Republic of Moldova, 2001, Art. No. 108-109, 834), with subsequent changes, DECIDES: the Government

1. Approve the Scheme of regional government assistance to the companies of free economic zones it (is applied).

2. This resolution becomes effective from the date of publication in the Official monitor of the Republic of Moldova.

Approved by the Order of the Government of the Republic of Moldova of December 23, 2024 No. 882

Scheme of regional government assistance to the companies of free economic zones

Chapter I. General provisions, determinations and scope

1. The scheme of regional government assistance to the companies of free economic zones (further - the Scheme) establishes procedure for provision of the tax benefits determined according to part provisions (2) article 49 of the Tax Code No. 1163/1993 (further - the Tax code).

2. For the purposes of this Scheme the following basic concepts mean:

2.1. the free economic zone which - is economically isolated, strictly delimited on perimeter part of customs area of the Republic of Moldova on which types of business activity according to the law are resolved domestic and foreign investors on favorable terms;

2.2. the beneficiary of regional government assistance (further - the beneficiary) - any company satisfying the conditions stated in Chapter III of the Scheme the having right to ask for government assistance and to receive it according to applicable regulations;

2.3. the company - the physical person or legal entity registered as resident of the free economic zone till December 31, 2023, performing the economic activity, any activities consisting of deliveries of goods, services and works in the market, permitted in this territory and provided by the agreement signed between administration of the free economic zone and resident;

2.4. the agreement signed with administration of the free economic zone - the legal document concluded as a result of the agreement on declaration of will between resident of the free economic zone and its administration on establishment, change or cancellation of legal relationship between them, including on the rights and obligations of the Parties;

2.5. acceptable expenses - expense amount, the tangible and intangible assets suffered on acquisition connected with investments into the free economic zone on the conditions established by this Scheme. Acceptable expenses are confirmed by supporting documents (financial statements and/or audit reports);

2.6. tangible assets - fixed assets, lands, real estate investments, mineral resources, (special) engineering constructions, transfer devices, the equipment, vehicles, the parcels of land, biological tangible assets;

2.7. intangible assets - non-monetary assets which do not take the material, identifiable and controlled form of the organization (inventions, trademarks, licenses, know-how, franchizes, the software, industrial designs, websites);

2.8. intensity of the help - the help amount expressed percentage of the acceptable expenses established according to the regulations adopted by Competition council and this Scheme;

2.9. the large investment project - the investment with acceptable costs more than 50 million euros expected on the official rate of National Bank of Moldova date of provision of regional government assistance - the date of entry into force of the additional act provided in Item 25 to the agreement signed with administration of the free economic zone;

2.10. the single investment project - any initial investments aimed at the same or similar activities begun with the same beneficiary of regional government assistance (at the group level), within three years from works start date on other investment in the same region of 3rd level of the Nomenclature of territorial units for statistics of the Republic of Moldova approved by the Order of the Government No. 570/2017;

2.11. the corrected amount of government assistance - the most admissible amount of the help for the large investment project calculated by formula:

Maximum amount of the help = R x (A + 0, 50 x B + 0,34 x C),

where:

- R - the maximum intensity of the help applied in the respective region;

- A - part of acceptable expenses in the amount of 50 million euros calculated according to the official exchange rate of National Bank of Moldova;

- B - part of acceptable expenses from 50 to 100 million euros calculated according to the official exchange rate of National Bank of Moldova;

- C - part of acceptable expenses in the amount of more than 100 million euros calculated according to the official exchange rate of National Bank of Moldova;

2.12. assistance - signing of the additional act provided in Item 25 to the contract with administration of the free economic zone which legal relationship between them are established, change or stop including the rights and obligations of the Parties are established;

2.13. help payment - provision to the beneficiary of privilege on tax on the income;

2.14. date of provision of government assistance - the date of entry into force of the additional act provided in Item 25 to the contract with administration of the free economic zone;

2.15. payment date of government assistance - date of provision to the beneficiary of income tax exemption, i.e. each date when the obligation on payment of the income tax becomes immediate for the beneficiary, for lack of application of provisions of this Scheme;

2.16. gross equivalent of subsidy - the current value of the help expressed percentage of current value of the acceptable costs expected date of provision of subsidy on the basis of the base rate operating for this date;

2.17. primary agricultural production - production of the vegetable products and animal products listed in the List of agricultural and food products approved by the Order of the Government No. 328/2023, without change of nature of these products;

2.18. agricultural products - the products listed in the List of agricultural and food products approved by the Order of the Government No. 328/2023, except for of products of fishery and aquaculture;

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