IT Industry in Moldova Demonstrates the Highest Growth Rates

The third year running, the information technology (IT) industry has demonstrated the highest growth rates in the national economy, proving its potential and development prospects. According to the institution, "the remarkable results are mainly due to the support mechanisms for the IT industry through a special state policy, especially the legislation on IT parks, on the basis of which Moldova IT Park, the first and only virtual IT park in our country, operates," moldpres.md reports. Despite the pandemic situation, Moldova IT Park has shown remarkable results in 2020. So, at the end of last year, Moldova IT Park had 658 residents, of which 513 companies with local capital and 145 companies with foreign capital. This figure increased by 25% compared to 2019 and by 95% compared to 2018. The highest growth rate in the last 3 years was recorded for companies with local capital (513 residents in 2020 compared to 242 residents in 2018), but companies with foreign capital also increased their presence in the park by more than 50% during this period (145 versus 96, respectively). Resident companies are owned by investors from the Republic of Moldova and 34 other countries. The top five countries, from which foreign capital comes from, are the United States (25 companies), Romania (18 companies), Italy (13 companies), Great Britain (11 companies) and Germany (11 companies). Almost 50% of the resident companies were created in the last three years after the launch of Moldova IT Park, whose tax and operating model has stimulated the inception of new companies. The sales income achieved by the residents of Moldova IT Park in 2020 amounted to 4.99 billion lei, which is 37% higher than in 2019 and 2.6 times higher than in 2018. According to the State Tax Service, in 2020 the contribution of Moldova IT Park residents to the national public budget amounted to 539.4 million lei, of which 387.15 million lei belong to the single tax, and 152.3 million lei - to other taxes and fees. Accordingly, the amount of taxes and fees paid by residents of the Park increased by 34% (+136.2 million lei) in 2020 compared to 2019 and by 59% (+199.2 million lei) compared to 2018. Currently, Moldova IT Park unites 800 companies, being the main engine for the development of the IT industry and increasing its competitiveness at the regional level.