Taxation in Caphiria: Difference between revisions

GCT -registered organisations and individuals pay GCT only on the difference between GCT-liable sales and GCT-liable supplies (i.e., they pay GCT on the difference between what they sell and what they buy: income less expenditure). This is accomplished by reconciling GCT received (through sales) and GCT paid (through purchases) at regular periods (typically every two months, with some qualifying companies opting for one-month or six-month periods), then either paying the difference to the Ministry of the Treasury if the GCT collected on sales is higher or receiving a refund from the Ministry if the GCT paid on purchases is higher.

====== Drug tax ======

Recreational drug use is both legal and extremely popular in Caphiria, despite being discouraged among the patrician order who generally view recreational drug use with disdain. The Narcotics Excise Tax is set at 35% and applied as a sales tax at a licensed ''apothecarius,'' or drug pharmacy. Half of the annual tax revenue collected from the narcotics tax is used to fund drug treatment facilities and provide assistance to treat and combat drug addiction.

Gambling in Caphiria is highly regulated; Caphiria levies excise taxes on both legal and illegal gambling transactions, as well as taxes on the turnover, on player loss and net profit; different gambling services are also taxed in different ways. As gambling operators need to obtain a license to offer their services, certain fees must also be paid.

Gamblers' winnings are not taxed. There are 3 main reasons for that:

* Gambling is not considered a profession, it's treated as a hobby or recreational activity.

* The Caphirian government views gains from gambling activities not as income, but as a result of good luck. Even if someone wins big, they also lose a lot in other gambling sessions.

* The government taxes gambling operators instead

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As a base, there is a 10% gambling excise tax applied on all gambling transactions. In addition, there is a 33% turnover tax on bookmakers, lottery subscriptions, and draw card machines. There are also various license fees for casinos, poker machines, lotteries, races, sports betting, and minor gambling (bingo, raffles).  

====== Fuel tax ======

In an effort to support renewable resources for transportation, Caphiria, like most countries, has excise taxes and other taxes on gasoline, diesel, and other liquid and gas motor fuels (collectively called fuel taxes), and also taxes electricity at various administrative levels. This fuel tax is applied to most road motor vehicles with exceptions for local bus services, some farm and construction vehicles and aviation, which pay reduced or no fuel tax. Most common forms of fuel are subject to a 12.614% VAT rate in addition to the excise tax. Other fuel (like avia gasoline, jet fuel, heavy oils, and autogas) prices has no excise tax.

|$0.3304 per kg

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====== Prostitution tax ======

{{main|Prostitution in Caphiria}}

Brothels must pay operational fees as well as a 20% revenue tax for each prostitute under its employment. Half of the tax revenue collected from brothels goes directly to the College of Prostitution.

== Wealth/Financial taxes ==