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Taxation in Caphiria: Difference between revisions
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== Corporate taxes == | == Corporate taxes == | ||
Corporate entities registered and/or based in Caphiria are subject to a Corporate Income Tax. Corporations that are exempt from corporate tax are charitable foundations, church institutions and sports clubs. | |||
Since 1981, Caphiria uses a proportional corporate tax; 20% applies to total annual revenue of up to $1 million, 12.3% applies to all revenue up to $1 billion, and a 10% tax for all revenue exceeding $1 billion. | |||
Prior to 1980, Caphiria used a flat corporate tax rate of 20%, but sweeping economic referendums were passed by Imperator Bogdanko in 1980 which got rid of the flat tax in favor for the proportional system used today. As part of the 2002 Economic Crisis, Imperator Arenris reached a compromise with the Senate that would grant corporate entities that were both already registered, and paying the 20% tax prior to 1980, permission pay a flat tax of 21.3%. This rate is called the ''hereditas tributum,'' or Legacy Corporate Tax, and is one of the most coveted things within the Caphirian business world. | |||
Capital gains and dividends derived from qualifying subsidiaries are not taxed, as is income attributable to a foreign business enterprise. Practically all business expenses are fully deductible due to the vague language in Caphiria's tax code; "Deductible expenses must be economically justified and properly evidenced with documents". Taxpayers resolve disputes through court litigation; the [[Court of Appeals (Caphiria)|Court of Appeals]] has handled so many accounting cases that its resolutions and rulings form a separate layer of tax law that augments the tax code. | |||
== Goods & Services taxes == | == Goods & Services taxes == | ||
== Wealth/Financial taxes == | == Wealth/Financial taxes == | ||