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Taxation in Caphiria: Difference between revisions
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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. | 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. | ||
====== Slave tax ====== | ====== Slave tax ====== | ||
Like prostitution, Caphiria has a legal and regulated slave trade. Historically, slaves were considered property under Caphiria law and had no legal personhood, but modern slavery in Caphiria is more of a hybrid of indentured servitude and chattel slavery. For its slavery tax, Caphiria has a double taxation system; a high uniform sales tax is applied as well as an annual per capita tax that is based on a complicated formula that has been darkly called the "formula for the soul's worth". This formula includes factors such as market price, the slave's age, the duration of the contract, as well as extracting their theoretical maximal productive capability. | |||
The slave sales tax is 33.3% on each purchased slave, as well as a $1,000 annual registration fee. | |||
Taxpayers with slaves who are under an active contract are subject to property taxes. | |||
== Wealth/Financial taxes == | == Wealth/Financial taxes == | ||
Caphiria has a General Transaction Tax , which is a small uniform tax of 0.399% on most economic transactions. This GT tax supports AELEA, Caphiria's national real-time gross settlement funds transfer system. This tax is not paid by consumers and is paid by merchants, financial institutions, and payment processors. | Caphiria has a General Transaction Tax , which is a small uniform tax of 0.399% on most economic transactions. This GT tax supports AELEA, Caphiria's national real-time gross settlement funds transfer system. This tax is not paid by consumers and is paid by merchants, financial institutions, and payment processors. | ||
The Securities Transaction Tax is a tax payable in Caphiria on the value of securities, such as shares, bonds, debentures, debenture stock, derivatives (but excluding commodities and currency) transacted through a recognized stock exchange. As of 2025, it is 0.025% for delivery based equity trading. STT does not apply to off-market transactions or on commodity or currency transactions. STT can be paid by the seller or the purchaser depending on the transaction. | The Securities Transaction Tax is a tax payable in Caphiria on the value of securities, such as shares, bonds, debentures, debenture stock, derivatives (but excluding commodities and currency) transacted through a recognized stock exchange. As of 2025, it is 0.025% for delivery based equity trading. STT does not apply to off-market transactions or on commodity or currency transactions. STT can be paid by the seller or the purchaser depending on the transaction. | ||
====== Wealth tax ====== | ====== Wealth tax ====== | ||
While Caphiria does not have a capital gains tax, | While Caphiria does not have a capital gains tax, it does have a class-based progressive wealth tax on net assets, such as real estate, yachts, artwork, vessels, ships, and other assets greater than $99,999. Shares in Caphirian firms, accounts receivable from Caphirian debtors, some portfolio assets, and financial lease agreements are all exempt from the tax. | ||
Individuals who are resident in Caphiria are taxed on their worldwide assets and individuals who are resident outside the Imperium are taxed on their assets in Caphiria. | Individuals who are resident in Caphiria are taxed on their worldwide assets and individuals who are resident outside the Imperium are taxed on their assets in Caphiria. According to the tax code, the value of a primary residence is valued to 25% of the market value, secondary residences to 90% of the market value, while other assets are determined by purchase price or current market value. Individuals resident in Caphiria are entitled to a deduction of 33.3% against the value of their main home for wealth tax purposes. | ||
The base rate for the wealth tax is 0.5%, which scales to 2% for Upper-Plebeians, 3% for Equites, and 5% for Patricians. | The base rate for the wealth tax is 0.5%, which scales to 2% for Upper-Plebeians, 3% for Equites, and 5% for Patricians. | ||
== Property taxes == | == Property taxes == | ||
== Other taxes == | == Other taxes == | ||