Taxation in Montecara: Difference between revisions

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'''Taxation in Montecara''' is administered by the [[Colegio|Secretariat for Finance]]. [[Montecara]] is known as a {{wp|tax haven}} and {{wp|offshore financial hub}} thanks to its lack of income, {{wp|capital gains tax|capital gains}}, and {{wp|estate tax|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 {{wp|dividend tax}}. There are no extant {{wp|tax treaty|double taxation avoidance agreements}}.  
'''Taxation in Montecara''' is administered by the [[College of State (Montecara)|Secretariat of Finance]].  


Note that this article does not cover profits earned by {{wp|state-owned enterprises}} in Montecara such as [[Poste de Montecara]] and [[Aeracara]] or dividends earned on [[Montepietà]], the {{wp|sovereign wealth fund}}.
[[Montecara]] is known as a {{wp|tax haven}} and {{wp|offshore financial hub}} thanks to its lack of income, {{wp|capital gains tax|capital gains}}, and {{wp|estate tax|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 {{wp|dividend tax}}.


== Excises ==
== Excises ==
Line 14: Line 16:
|colspan="2"|'''Alcohol'''
|colspan="2"|'''Alcohol'''
|Ł65/liter of pure ethanol
|Ł65/liter of pure ethanol
|751.5
|752
|-
|-
|colspan="2"|'''Cannabis'''
|colspan="2"|'''Cannabis'''
|Ł15/g  
|Ł15/g  
|656.9
|657
|-
|-
|colspan="2"|'''Electricity'''
|colspan="2"|'''Electricity'''
|Ł22/MW·h
|Ł22/MW·h
|315.7
|316
|-
|-
|rowspan="8"|'''Fuel'''
|rowspan="8"|'''Fuel'''
Line 28: Line 30:
|Coal and coke
|Coal and coke
|Ł15.50/{{wp|Gigajoule|Gj}}
|Ł15.50/{{wp|Gigajoule|Gj}}
|29.0
|29
|-
|-
|Diesel
|Diesel
|Ł6.35/l
|Ł6.35/l
|4,171.1
|4,171
|-
|-
|Gasoline
|Gasoline
|Ł5.75/l
|Ł5.75/l
|4,965.5
|4,966
|-
|-
|Heavy fuel oil
|Heavy fuel oil
|Ł2.85/l
|Ł2.85/l
|4,796.3
|4,796
|-  
|-  
|Kerosene
|Kerosene
|Ł3.00/l
|Ł3.00/l
|940.0
|940
|-
|-
|LPG
|LPG
|Ł1.90/l
|Ł1.90/l
|154.4
|154
|-
|-
|Natural gas
|Natural gas
|Ł2.55/m³
|Ł2.55/m³
|3,389.0
|3,389
|-
|-
|colspan="2"|'''Tobacco'''
|colspan="2"|'''Tobacco'''
|Ł12/pack of 20 cigarettes<br>Ł7/cigar ≤ 10g<br>Ł9/cigar > 10g<br>Ł0.65/g loose tobacco
|Ł12/pack of 20 cigarettes<br>Ł7/cigar ≤ 10g<br>Ł9/cigar > 10g<br>Ł0.65/g loose tobacco
|2,433.0
|2,433
|-
|-
|}
|}


== Tariffs ==
== Tariffs ==
The Montecaran tariff system is complex, with rates varying by national origin and type of good, but are generally low by international standards (with some notable exceptions). For instance, the general tariff rate with the [[Euclean Community]] is 4%, and other tariffs range from 0% (for many types of goods and utilities) to 45% (for private cars, trucks, and vans). Montecara collected Ł3.215 million in tariff revenue in 2017.
Montecara is a {{wp|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 ==
== Taxes ==
Hospitality tax is assessed on spending at hotels, casinos, brothels, and car rental agencies. 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.).
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.).


{| class="wikitable"
{| class="wikitable"
!colspan="2"|Type
!colspan="2"|Type
!Rate
!Rate
!2017 revenue (millions Ł)
!2022 revenue (millions €)
|-
|-
|rowspan="2"|'''Air transport tax'''
|rowspan="2"|'''Air transport tax'''
|Cargo
|Cargo
|Ł16/tonne
|Ł16/tonne
|13.2
|
|-
|-
|Passengers
|Passengers
|5% of ticket price
|5% of ticket price
|508.2
|
|-
|-
|rowspan="4"|'''Corporation tax'''
|rowspan="4"|'''Corporation tax'''
Line 84: Line 86:
|Income earned in Montecara by entities incorporated abroad
|Income earned in Montecara by entities incorporated abroad
|13.5%
|13.5%
|735.0
|
|-
|-
|Income earned abroad by domestically incorporated entities
|Income earned abroad by domestically incorporated entities
|7.5%
|7.5%
|48,205.0
|
|-
|-
|Domestic income earned by domestically incorporated entities  
|Domestic income earned by domestically incorporated entities  
Line 96: Line 98:
|colspan="2"|'''Foreign insurance tax'''
|colspan="2"|'''Foreign insurance tax'''
|4.75% of premium
|4.75% of premium
|85.1
|
|-
|-
|colspan="2"|'''Franchise tax'''
|colspan="2"|'''Franchise tax'''
|''Varies''
|''Varies''
|3,961.5
|
|-
|colspan="2"|'''Hospitality tax'''
|22%
|2,397.6
|-
|-
|colspan="2"|'''Land value tax'''
|colspan="2"|'''Land value tax'''
|0% - 2.75%
|0% - 2.75%
|17,059.2
|
|-
|-
|colspan="2"|'''Mortgage tax'''
|colspan="2"|'''Mortgage tax'''
|0.9% of each payment
|0.9% of each payment
|271.4
|
|-
|-
|colspan="2"|'''Value-added tax'''
|colspan="2"|'''Value-added tax'''
|0% - 6%
|20% standard rate, 12% reduced rate
|32,222.7
|13,650
|-
|-
|colspan="2"|'''Withholding tax'''
|colspan="2"|'''Withholding tax'''
|18%
|18%
|401.6
|
|}
|}


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|Ł2,500
|Ł2,500
|17
|17
|Flat fee assessed on incorporating a new business. Montecara has no {{wp|franchise tax}}.
|Flat fee assessed on incorporating a new business.  
|-
|-
|'''Landing and docking'''
|'''Landing and docking'''
Line 197: Line 195:
|'''Public broadcasting surcharge'''
|'''Public broadcasting surcharge'''
|13%
|13%
|Assessed on cable television, Internet service, and cellular data bills in order to fund [[Telèradio Montecara]].
|Assessed on cable television, Internet service, and cellular data bills to fund [[Teleràdio Montecarà]].
|}
|}


== Discontinued ==
== 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 ===
Salt tax ([[Montecaran language|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.
Salt tax ([[Montecaran language|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.
=== Stamp tax ===
First levied in 1708, stamp tax was imposed on official documents, newspapers, {{wp|cheque|cheques}}, and other printed matter. It was finally repealed in its entirety in 1953.


{{Template:Montecara topics}}
{{Template:Montecara topics}}

Latest revision as of 17:31, 9 August 2023

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 to fund Teleràdio Montecarà.

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.

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