User:Montecara/Sandbox 11

Direct taxes

Montecara does not assess a personal income tax or a capital gains tax.

Corporate income tax

Assessed on net profits of corporations, cooperatives, and other ventures. Resident companies are taxed on their worldwide income, except for profits derived from foreign branches and foreign immovable property, which are exempt. Nonresident companies are taxed on permanent establishment/branch income and/or immovable property located in Montecara. First Ł25,000 in profit earned domestically exempt.

Corporate income tax rates

Category	Rate	Notes
Base rate	13.5%
Concessionary rate	4.5%	Foundations, non-profit organizations, religious entities
Exempt	n.a.	Registered charities

Transfer tax

Montecara does not assess estate tax or gift tax.

Transfer tax rates

Category	Rate	Notes
Cryptocurrency	0.50%	Levied on the transfer of cryptocurrency. Cryptocurrency is considered property (not as foreign currency).
Real property	1.50%	Levied on the purchase price of real property
Securities	0.015%	Levied on the sale or transfer of securities (stocks and bonds)

Indirect taxes

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Taxation in Montecara is administered by the Secretariat of Finance.

Montecara is known as a tax haven and offshore financial hub thanks to its lack of income, capital gains, and estate taxes. The state does, however, assess a variety of other taxes and fees that contribute to its overall operating revenue.

Montecara operates a single-tier tax system; i.e., there is no dividend tax.

Excises

Tax stamp for cigarettes sold in Montecara

Excises are per unit taxes paid on specific types of goods.

Type		Rate	2017 revenue (millions Ł)
Alcohol		Ł65/liter of pure ethanol	752
Cannabis		Ł15/g	657
Electricity		Ł22/MW·h	316
Fuel
	Coal and coke	Ł15.50/Gj	29
	Diesel	Ł6.35/l	4,171
	Gasoline	Ł5.75/l	4,966
	Heavy fuel oil	Ł2.85/l	4,796
	Kerosene	Ł3.00/l	940
	LPG	Ł1.90/l	154
	Natural gas	Ł2.55/m³	3,389
Tobacco		Ł12/pack of 20 cigarettes Ł7/cigar ≤ 10g Ł9/cigar > 10g Ł0.65/g loose tobacco	2,433

Tariffs

Montecara is a free port and levies tariffs on only two line items: fresh fish at 3.5% and works of art at 6%. The overall weighted mean tariff rate is 0.0%. Receipts from tariffs totaled approximately Ł133 million (€26 million) in 2019.

Taxes

Land value tax is assessed on the unimproved value of land. Withholding tax is assessed on income earned in Montecara by non-resident foreign workers (entertainers, athletes, etc.).

Type		Rate	2022 revenue (millions €)
Air transport tax	Cargo	Ł16/tonne
	Passengers	5% of ticket price
Corporation tax
	Income earned in Montecara by entities incorporated abroad	13.5%
	Income earned abroad by domestically incorporated entities	7.5%
	Domestic income earned by domestically incorporated entities	0%	0
Foreign insurance tax		4.75% of premium
Franchise tax		Varies
Land value tax		0% - 2.75%
Mortgage tax		0.9% of each payment
Value-added tax		20% standard rate, 12% reduced rate	13,650
Withholding tax		18%

Fees

Type	Rate	2017 revenue (millions Ł)	Notes
Air and sea transit	Varies	62	Charged to aircraft and ships transiting Montecaran seas and airspace.
Cruise ship passenger fee	Ł425/passenger	81
Incorporation	Ł2,500	17	Flat fee assessed on incorporating a new business.
Landing and docking	Varies	10,445	Assessed on aircraft and ships using Montecara's port or airport.
License plate auction revenue	Varies	623
Road use vignette	Varies	10,445
Ship registration	Varies	43	Costs vary with size, class, and age of ship. Montecara has an open ship registry and is a popular flag of convenience.
Vehicle registration	Varies	8,623

Hypothecated fees and surcharges

Revenue from these sources is dedicated to specific purposes rather than being paid into the general account.

Type	Rate	Notes
Climate surcharge	Ł88.20/tonne emitted CO2‑e	Assessed on emissions of carbon dioxide, methane, nitrous oxide, and fluorinated gases not otherwise taxed. Revenue is earmarked to subsidize replacement technologies for these gases.
Electronic goods recycling fee	3%	Collected at sale and earmarked for e-waste recycling.
Fishing equipment surcharge	12%	Collected at sale and earmarked for the cleanup of waste from Montecaran waters and beaches.
Landfill waste collection fee	Ł80/tonne	Assessed on domestic, commercial, and industrial landfill waste and earmarked for processing costs.
Public broadcasting surcharge	13%	Assessed on cable television, Internet service, and cellular data bills in order to fund Telèradio Montecara.

Discontinued

Straits tolls

Thanks to its strategic location in the Aurean Straits, Montecara was for centuries able to tax the ships and goods that traversed its littoral. Vessels refusing to stop and be taxed were summarily bombarded by the extensive network of coastal artillery. This was the major source of funding between the fourteenth and nineteenth centuries. Straits tolls ended with the Gaullican annexation and were not reinstated when Montecara regained independence.

Salt tax

Salt tax (Montecaran: gabèla) was first imposed under the Latin Republic, and was levied in some form up to the late 19th century. It was for many centuries up to the early modern era the single largest source of income for the Montecaran state, though it was often bitterly resented by common people. At times it even included the compulsory purchase of a fixed quantity of salt per month by every man, woman, and child in Montecara.