Taxes for issuing construction authorizations and certificates decreased 4-5-fold

Taxes for issuing authorization and certificates in constructions were decreased 4-5-fold, and according to the amendments operated by the Cabinet of Ministers on Thursday, October 12, to the decision of April 18, 1997 “About the approval of the Regulation on urbanism certificate and authorizing/canceling construction”. The Minister of Economy and Commerce, Igor Dodon told reporters that this draft was promoted by the Ministry of Economy and Commerce as a result of the analysis performed regarding the situation in construction. According to him, these amendments are a significant step towards promoting a favorable investment climate in the construction field and for regulating taxes for issuing construction authorizations. Because the fee for these authorizations was settled from 0.1 up to 1% of construction’s value, so that in the case of an investment of USD 50 mln, the tax of USD 500 thousand for a simple authorization was an exaggerated sum for investors, Dodon said, justifying the necessity of the amendments. According to him, because of these sums, the majority of entrepreneurs had to diminish invoices when putting into operation different constructions in order to pay less to the budget. Also because of this reason, the local budgets which collect these taxes will not be affected at the incomes chapter, the minister considers. The draft includes tax exemptions for the investments of the objectives constructed from public money and for the individual one-storied houses, as well as for the objects built through the National Dwellings Service, because the Service was created for the construction of dwellings at a lower price for the socially-vulnerable categories of persons. In this way, a tax of MDL 1500 will be collected for issuing the construction authorities of 2-3-storied individual houses, including household annexes erected in urban and local localities. Authorities for the construction of social-cultural objectives will cost MDL 1000; MDL 3000 – for the 5-storied apartment blocks, MDL 6500 – for blocks exceeding 5 stories, MDL 4000 – for the construction with an authorized value up to MDL 1 mln, MDL 600 – for the construction from MDL 1 mln up to MDL 5 mln, MDL 10 thousand – for the construction of MDL 5 mln up to MDL 10 mln, MDL 20 thousand – for the constructions with a value of over MDL 10 mln.