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Taxation in Caphiria: Difference between revisions
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Taxpayers with slaves who are under an active contract are subject to property taxes. | 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. | ||
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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 == | ||
Most property taxes are collected by Provinces or local municipalities.The three most common types of property tax in Caphiria are the general real estate tax (GRE), the Personal Property (PP) Tax, and the Land Value Tax. | |||
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. If the tax is not paid within a specified period of time (including additional interest, penalties, and costs), 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 of time) 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 rate 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 size of the land does not exceed 0.25 ha in urban areas and 2.0 ha in other areas. 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 exempts 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 licences, 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. | |||
== Other taxes == | == Other taxes == | ||
[[Category:Caphiria]] | [[Category:Caphiria]] | ||