Capital amnesty campaign resulted in legalization of 2.24 billion lei, Economy and Trade Minister

The capital amnesty campaign, which lasted more than one and a half years and ended on December 31, resulted in the legalization of different forms of capital worth 2.24 billion lei. Of the total amount, 77 million lei represented funds legalized by natural persons, and the remaining 2.163 billion lei were assets in the form of equipment, real property and securities legalized by both natural and juridical persons, Info-Prim Neo reports. The information was revealed by Economy and Trade Minister Igor Dodon at a briefing on Tuesday. Budget proceeds from legalization fees (5 percent of the value of the legalized capital) constituted 112 million lei. Capital legalization is one the three measures meant to liberalize the Moldovan economy, along with fiscal amnesty (which was conducted through 2007) and the zero corporate tax rate, which came into effect on January 1, 2008. As a result of the fiscal amnesty campaign, overdue tax liabilities of over 4 billion lei were canceled. Speaking about the results of the zero rate tax on corporate income, Dodon said the measure gave a boost to the entrepreneurial activity and helped reduce shadow economy. The Minister also added that in 2008, the year when the zero corporate tax rate was introduced, VAT paid by economic entities increased significantly. The exact amount will be known after March 31, when tax returns are due, explained Dodon. In December 2008, Galina Spac, department head at the Main Tax Inspectorate, said the state got some 9 million lei in fees for processing legalization deals, much below the 294 million lei target planned by the 2008 State Budget.