Taxation in Caphiria: Difference between revisions

Caphiria has a General Consumption Tax (GCT) of 10%, which applies to most "non-essential" goods and services; "essential" goods and services, such as groceries, electricity, etc., fall under the Necessity Consumption Tax (NCT) which is taxed at 5%. The General Consumption Tax is a broad-based system with few exemptions and is applied to the final price of the product or service being purchased, and goods and services are advertised as GCT inclusive.

Caphiria has a General Transaction Tax, 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 but 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, and 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 General Real Estate tax is a progressive tax applied on an annual assessment of all property value owned by an individual. Provinces collect the revenue from the GRE tax. The base tax rate is 0.64%; 1.72% for Lower Plebeians; 1.98% for Upper Plebeians; 2.25% for Equites; and 2.584% for Patricians. Suppose the tax is not paid within a specified period (including additional interest, penalties, and costs). In that case, a tax sale is held, which may result in either 1) the actual sale of a property or 2) a lien sold to a third party, who (after another specified period) may take action to claim the property, or force a later sale to redeem the lien.

The Personal Property Tax applies to tangibles such as furniture, clothing, jewelry, art, vehicles, etc., and is collected by both Provinces and municipalities. The tax rate is a flat 0.29% and uses an assessment ratio of 0.75.

The Land Value Tax is a progressive tax on all domestic and commercial properties unless exempted. Land values are periodically assessed by land registrars and kept substantially below market prices. Unlike corporate property tax, the land value tax is paid by individual taxpayers. While the central government sets the minimum and maximum tax rates for urban and rural properties, the exact rate is determined by the local municipality. For urban properties, the rate is between 0.4% and 1.10%, and for rural properties, the range is between 0.3% and 0.90%. Currently, the average rate is 2.612%. Land containing a residential dwelling occupied by the land's owner is exempt if the land size does not exceed 0.25 ha in urban areas and 2.0 ha in other regions. The local municipality can grant further exemptions to pensioners and disabled or repressed people.  

The Real Estate Transfer Tax, collected by municipalities, is a small 2.41% tax applied when a property title changes hands. Some municipalities exempt certain "first-time buyers" from this tax altogether.  

Caphiria's Estate Tax applies to the transfer of inheritances received through a will, with transfers to direct relatives being exempt. The estate tax is a class-based progressive tax with the base rate being 12%; 16.05 for Lower Plebeians; 18.35% for Upper Plebeians; 19.4% for Equites; and 20% for Patricians. Many prominent individuals get around the estate tax by taking advantage of [[Estate (Caphiria)|Estates]], which are effectively legal loopholes to avoid this tax.

There are two additional minor property taxes - the stamp tax and the general transfer tax. The stamp tax is a 1% tax applied on single property purchases or documents such as checks, receipts, military commissions, marriage licenses, and land transactions, and the general transfer tax is a 0.05% tax on the transfer of property (or title/deed) such as bonds, shares, or other non-tangibles.