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}}, {{wp|estate tax|estate}}, and value-added or sales 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.  


== General taxes ==
Montecara operates a single-tier tax system; i.e., there is no {{wp|dividend tax}}.
 
== Excises ==
[[File:Cig-tax.png|200px|thumbnail|right|Tax stamp for cigarettes sold in Montecara]]
[[File:Cig-tax.png|200px|thumbnail|right|Tax stamp for cigarettes sold in Montecara]]
Revenue from these taxes is paid into the general account in the Montecaran treasury to be used for any purpose the state designates.  
Excises are {{wp|per unit tax|per unit taxes}} paid on specific types of goods.  


{| class="wikitable"
{| class="wikitable"
!colspan="2"|Type
!colspan="2"|Type
!Rate
!Rate
!Notes
!2017 revenue<br>(millions Ł)
|-
|colspan="2"|'''Alcohol'''
|Ł65/liter of pure ethanol
|752
|-
|colspan="2"|'''Cannabis'''
|Ł15/g
|657
|-
|colspan="2"|'''Electricity'''
|Ł22/MW·h
|316
|-
|rowspan="8"|'''Fuel'''
|-
|Coal and coke
|Ł15.50/{{wp|Gigajoule|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
|-
|-
|colspan="2"|'''Tobacco'''
|Ł12/pack of 20 cigarettes<br>Ł7/cigar ≤ 10g<br>Ł9/cigar > 10g<br>Ł0.65/g loose tobacco
|2,433
|-
|-
|rowspan="6"| '''Excises'''  
|}
 
== Tariffs ==
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 ==
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"
!colspan="2"|Type
!Rate
!2022 revenue (millions €)
|-
|rowspan="2"|'''Air transport tax'''
|Cargo
|Ł16/tonne
|
|-
|-
|Alcohol
|Passengers
|Ł65/liter of pure ethanol
|5% of ticket price
|
|
|-
|-
|Cannabis
|rowspan="4"|'''Corporation tax'''
|Ł15/g
|Dried plant matter or extracts
|-
|-
|Petroleum fuel
|Income earned in Montecara by entities incorporated abroad
|Ł5.90/liter + Ł0.10/liter [[Climate Change Act 2016|EC Carbon tax]]
|13.5%
|
|
|-
|-
|Natural gas
|Income earned abroad by domestically incorporated entities
|Ł2.85/m³ + Ł0.15/m³ [[Climate Change Act 2016|EC Carbon tax]]
|7.5%
|
|
|-
|-
|Tobacco
|Domestic income earned by domestically incorporated entities
|Ł40.75/pack of 20 cigarettes<br>Ł7.50/cigar ≤ 10g<br>Ł8.25/cigar > 10g<br>Ł1.50/g loose tobacco
|0%
|0
|-
|colspan="2"|'''Foreign insurance tax'''
|4.75% of premium
|
|
|-
|-
|colspan="2"|'''Corporation tax'''
|colspan="2"|'''Franchise tax'''
|13.5% on income earned in Montecara by businesses incorporated in foreign states<br>7.5% on income earned abroad by domestically incorporated entities<br>0% on domestic income earned by domestically incorporated entities
|''Varies''
|
|
|-
|colspan="2"|'''Hospitality tax'''
|22%
|Assessed on spending at hotels, casinos, brothels, and car rental
|-
|-
|colspan="2"|'''Land value tax'''
|colspan="2"|'''Land value tax'''
|0% - 2.75%
|0% - 2.75%
|Assessed on the unimproved value of land
|
|-
|-
|colspan="2"|'''Tariffs'''
|colspan="2"|'''Mortgage tax'''
|''Varies''
|0.9% of each payment
|The [[Esquarian Community]] tariff regime, including [[Climate Change Act 2016|Carbon Tariff]], applies. See [[Comprehensive Common Market Act 2017]].
|
|-
|colspan="2"|'''Value-added tax'''
|20% standard rate, 12% reduced rate
|13,650
|-
|-
|colspan="2"|'''Withholding tax'''
|colspan="2"|'''Withholding tax'''
|18%
|18%
|Assessed on income earned in Montecara by non-resident foreign workers (entertainers, athletes, etc.)
|
|}
|}


== Non-tax general revenue ==
== Fees ==
Revenue from these non-tax sources is paid into the general account.


{| class="wikitable"
{| class="wikitable"
!colspan="2"|Type
!Type
!Rate
!Rate
!2017 revenue<br>(millions Ł)
!Notes
!Notes
|-
|-
|rowspan="7"|'''Fees'''
|'''Air and sea transit'''
|-
|Environmental remediation
|''Varies''
|''Varies''
|Assessed on removing trees and vegetation, construction and demolition, and land grading
|62
|Charged to aircraft and ships transiting Montecaran seas and airspace.
|-
|-
|Incorporation
|'''Cruise ship passenger fee'''
|Ł500
|Ł425/passenger
|Flat fee assessed on incorporating a new business. Montecara has no {{wp|franchise tax}}.
|81
|
|-
|-
|Landing and docking
|'''Incorporation'''
|''Varies''
|Ł2,500
|Assessed on aircraft and ships using Montecara's port or [[Montecara–Enrico Dulio International Airport|airport]].  
|17
|Flat fee assessed on incorporating a new business.  
|-
|-
|Passenger vehicle registration
|'''Landing and docking'''
|''Varies''
|''Varies''
|Varies by emissions rating and weight class.
|10,445
|-
|Assessed on aircraft and ships using Montecara's port or [[Montecara–Enrico Dulio International Airport|airport]].
|Road use vignette
|Ł4800 per year<br>Ł450 per 30 days
|For passenger cars; trucks pay higher rate. Required to operate a foreign vehicle in Montecara.
|-
|-
|Ship registration
|'''License plate auction revenue'''
|''Varies''
|''Varies''
|Costs vary with size, class, and age of ship. Montecara has an open ship registry and is a popular {{wp|flag of convenience}}.
|623
|
|-
|-
|colspan="2"|'''Fines'''
|'''Road use vignette'''
|''Varies''
|''Varies''
|10,445
|
|
|-
|-
|colspan="2"|'''License plate auction revenue'''
|'''Ship registration'''
|''Varies''
|''Varies''
|A {{wp|license plate}} auction is held every six months.
|43
|Costs vary with size, class, and age of ship. Montecara has an open ship registry and is a popular {{wp|flag of convenience}}.
|-
|-
|colspan="2"|'''Loans'''
|'''Vehicle registration'''  
|{{n/a}}
|Includes all Montecaran government debt
|-
|colspan="2"|'''Rents and royalties'''
|''Varies''
|''Varies''
|Collected on state intellectual property, rent of state property, and collection of natural resources.
|8,623
|
|}
|}


== Hypothecated revenue ==
== Hypothecated fees and surcharges ==
Revenue from these sources is dedicated to specific purposes rather than being paid into the general account.
Revenue from these sources is dedicated to specific purposes rather than being paid into the general account.
{| class="wikitable"
{| class="wikitable"
!Type
!Type
Line 115: Line 177:
!Notes
!Notes
|-
|-
|'''Climate change tax'''
|'''Climate surcharge'''
|Ł88.20/{{wp|tonne}} emitted {{wp|Carbon dioxide equivalent|CO<sub>2</sub>‑e}}
|Ł88.20/{{wp|tonne}} emitted {{wp|Carbon dioxide equivalent|CO<sub>2</sub>‑e}}
|Assessed on emissions of {{wp|carbon dioxide}}, {{wp|methane}}, {{wp|nitrous oxide}}, and {{wp|fluorinated gases}}. Revenue is earmarked to subsidize replacement technologies for these gases. Applied on top of [[Esquarian Community]] carbon tax as required by [[Climate Change Act 2016]].
|Assessed on emissions of {{wp|carbon dioxide}}, {{wp|methane}}, {{wp|nitrous oxide}}, and {{wp|fluorinated gases}} not otherwise taxed. Revenue is earmarked to subsidize replacement technologies for these gases.
|-
|-
|'''Electronic goods recycling fee'''
|'''Electronic goods recycling fee'''
Line 123: Line 185:
|Collected at sale and earmarked for {{wp|e-waste}} recycling.
|Collected at sale and earmarked for {{wp|e-waste}} recycling.
|-
|-
|'''Gifts and endowments'''
|'''Fishing equipment surcharge'''
|{{n/a}}
|12%
|Gifts and endowments are generally dedicated to specific purposes, such as the maintenance of public spaces or education and research.
|Collected at sale and earmarked for the cleanup of waste from Montecaran waters and beaches.
|-
|-
|'''Landfill waste collection fee'''
|'''Landfill waste collection fee'''
Line 131: Line 193:
|Assessed on domestic, commercial, and industrial landfill waste and earmarked for processing costs.
|Assessed on domestic, commercial, and industrial landfill waste and earmarked for processing costs.
|-
|-
|'''License fees'''
|'''Public broadcasting surcharge'''
|''Varies''
|13%
|Collected on licenses related to health and safety, small business operations, professional certification, etc. and used to fund regulation and inspection.
|Assessed on cable television, Internet service, and cellular data bills to fund [[Teleràdio Montecarà]].
|-
|'''Public broadcasting license'''
|7%
|Assessed on cable television, Internet service, and cellular data bills in order to fund [[Telèradio Montecara]].
|}
|}


== 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.
== See also ==
* [[Tax rates in Esquarium]]


{{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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