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Taxation in Caphiria: Difference between revisions
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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. | 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. | ||
Foreign tourists cannot recover VAT on purchases made in Caphiria. | |||
====== Drug tax ====== | ====== 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. | 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. | ||
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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 ====== | |||
== 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. | |||
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 ====== | |||
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. 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. | |||
== Property taxes == | == Property taxes == | ||
== Other taxes == | == Other taxes == | ||