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'''Taxation in Montecara''' is administered by the [[College of State (Montecara)|Secretariat of 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}}.
== Direct taxes ==
== Direct taxes ==
Montecara does not assess a personal {{wp|Income tax|income tax}} or a {{wp|Capital gains tax|capital gains tax}}.  
Montecara does not assess a personal {{wp|Income tax|income tax}} or a {{wp|Capital gains tax|capital gains tax}}.  
Line 24: Line 30:
| Registered charities
| Registered charities
|}
|}
=== Foreign worker tax ===


=== Transfer tax ===
=== Transfer tax ===
Line 47: Line 55:


=== Land value tax ===
=== Land value tax ===
Land value tax is assessed on the unimproved value of land.


=== Withholding tax ===
=== Withholding tax ===
Withholding tax is assessed on income earned in Montecara by non-resident foreign workers (entertainers, athletes, etc.).
* General rate, 18%


== Indirect taxes ==
== Indirect taxes ==


 
=== Excises ===
-----------
 
'''Taxation in Montecara''' is administered by the [[College of State (Montecara)|Secretariat of 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}}.
 
== 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]]
Excises are {{wp|per unit tax|per unit taxes}} paid on specific types of goods.  
Excises are {{wp|per unit tax|per unit taxes}} paid on specific items when they are created or imported.


{| class="wikitable"
{| class="wikitable"
!colspan="2"|Type
|+ Air and sea transportation taxes
!Rate
!2017 revenue<br>(millions Ł)
|-
|-
|colspan="2"|'''Alcohol'''
! Category
|Ł65/liter of pure ethanol
! Rate
|752
|-
|-
|colspan="2"|'''Cannabis'''
| Transportation of persons by air
|Ł15/g
| 5% of ticket price
|657
|-
|-
|colspan="2"|'''Electricity'''
| Transportation of cargo by air
|Ł22/MW·h
| Ł16/tonne
|316
|-
|-
|rowspan="8"|'''Fuel'''
| Transportation of persons by water
|
|}
 
{| class="wikitable"
|+ Alcohol excise taxes
|-
|-
|Coal and coke
! Category
|Ł15.50/{{wp|Gigajoule|Gj}}
! Rate
|29
|-
| Beer or cider
|
|-
| Spirits
|
|-
|-
|Diesel
| Wine
|Ł6.35/l
|
|4,171
|}
 
{| class="wikitable"
|+ Cannabis and tobacco excise taxes
|-
|-
|Gasoline
! Category
|Ł5.75/l
! Rate
|4,966
|-
|-
|Heavy fuel oil
| Cannabis (dried plant matter)
|Ł2.85/l
| Ł15/g
|4,796
|-
|Kerosene
|Ł3.00/l
|940
|-
|-
|LPG
| Cigarettes (pack of 20)
|Ł1.90/l
| Ł12
|154
|-
|-
|Natural gas
| Cigar ≤ 10g
|Ł2.55/m³
| Ł7
|3,389
|-
|-
|colspan="2"|'''Tobacco'''
| Cigar > 10g
|Ł12/pack of 20 cigarettes<br>Ł7/cigar ≤ 10g<br>Ł9/cigar > 10g<br>Ł0.65/g loose tobacco
| Ł9
|2,433
|-
|-
| Loose tobacco
| Ł0.65/g
|}
|}
== 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"
{| class="wikitable"
!colspan="2"|Type
|+ Environmental taxes
!Rate
!2022 revenue (millions €)
|-
|-
|rowspan="2"|'''Air transport tax'''
! Category
|Cargo
! Rate
|Ł16/tonne
|-
|
| Fishing equipment
| 12%
|-
|-
|Passengers
| Fluorinated gases
|5% of ticket price
|  
|
|-
|-
|rowspan="4"|'''Corporation tax'''
| Landfill waste
| Ł80/tonne
|-
|-
|Income earned in Montecara by entities incorporated abroad
| Ozone-depleting substances
|13.5%
|
|
|-
|-
|Income earned abroad by domestically incorporated entities
| Tires
|7.5%
|
|
|-
|-
|Domestic income earned by domestically incorporated entities
|  
|0%
|0
|-
|colspan="2"|'''Foreign insurance tax'''
|4.75% of premium
|
|
|-
|-
|colspan="2"|'''Franchise tax'''
|''Varies''
|
|
|-
|colspan="2"|'''Land value tax'''
|0% - 2.75%
|
|
|}
{| class="wikitable"
|+ Foreign insurance taxes
|-
|-
|colspan="2"|'''Mortgage tax'''
! Category
|0.9% of each payment
! Rate
|
|-
|-
|colspan="2"|'''Value-added tax'''
| Insurance
|20% standard rate, 12% reduced rate
| 4.75% of premium
|13,650
|-
|-
|colspan="2"|'''Withholding tax'''
| Reinsurance
|18%
| 1.25% of premium
|
|}
|}
== Fees ==


{| class="wikitable"
{| class="wikitable"
!Type
|+ Fuel and energy taxes
!Rate
|-
!2017 revenue<br>(millions Ł)
! Category
!Notes
! Rate
|-
| Diesel
| Ł6.35/l
|-
|-
|'''Air and sea transit'''
| Kerosene for use in aviation
|''Varies''
|  
|62
|Charged to aircraft and ships transiting Montecaran seas and airspace.
|-
|-
|'''Cruise ship passenger fee'''
| Kerosene for other uses
|Ł425/passenger
| Ł3.00/l
|81
|-
|
| Gasoline
| Ł5.75/l
|-
| Aviation gasoline
|  
|-
|-
|'''Incorporation'''
| Liquefied petroleum gas (LPG)
|Ł2,500
| Ł1.90/l
|17
|Flat fee assessed on incorporating a new business.  
|-
|-
|'''Landing and docking'''
| Compressed natural gas (CNG)
|''Varies''
|  
|10,445
|Assessed on aircraft and ships using Montecara's port or [[Montecara–Enrico Dulio International Airport|airport]].
|-
|-
|'''License plate auction revenue'''
| Liquefied hydrogen
|''Varies''
|  
|623
|-
| Liquid fuel derived from biomass
|
|
|-
|-
|'''Road use vignette'''
| Liquefied natural gas (LNG)
|''Varies''
|10,445
|
|
|-
|-
|'''Ship registration'''
| Natural gas
|''Varies''
| Ł2.55/m³
|43
|-
|Costs vary with size, class, and age of ship. Montecara has an open ship registry and is a popular {{wp|flag of convenience}}.
| Heavy fuel oil
| Ł2.85/l
|-
| Coal and coke
| Ł15.50/{{wp|Gigajoule|Gj}}
|-
|-
|'''Vehicle registration'''
| Electricity
|''Varies''
| Ł22/MW·h
|8,623
|
|}
|}


== Hypothecated fees and surcharges ==
Revenue from these sources is dedicated to specific purposes rather than being paid into the general account.
{| class="wikitable"
{| class="wikitable"
!Type
|+ Motor vehicle taxes
!Rate
!Notes
|-
|-
|'''Climate surcharge'''
! Category
|Ł88.20/{{wp|tonne}} emitted {{wp|Carbon dioxide equivalent|CO<sub>2</sub>‑e}}
! Rate
|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'''
| Aircraft
|3%
|
|Collected at sale and earmarked for {{wp|e-waste}} recycling.
|-
|-
|'''Fishing equipment surcharge'''
| Passenger cars
|12%
|
|Collected at sale and earmarked for the cleanup of waste from Montecaran waters and beaches.
|-
|-
|'''Landfill waste collection fee'''
| Ships
|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]].
|}
|}
=== Franchise tax ===
=== Mortgage tax ===
* 0.9% of each payment
=== 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.
=== Value-added tax ===
==== Surtaxes ====
* E-waste recycling surtax, 3%
* Public broadcasting surtax, 13%; Assessed on cable television, Internet service, and cellular data bills in order to fund [[Telèradio Montecara]].


== Discontinued ==
== Discontinued ==

Revision as of 17:21, 15 June 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.

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 0% Registered charities

Foreign worker tax

Transfer tax

Transfer tax is charged when certain types of property are sold, traded, or given away. Montecara charges a transfer tax on three categories of property: real property, meaning land and buildings; securities, which are mostly stocks and bonds; and cryptocurrency.

Montecara does not assess estate tax or gift tax.

Transfer tax rates
Category Rate
Cryptocurrency 0.50%
Real property 1.125%
Securities 0.015%

Land value tax

Land value tax is assessed on the unimproved value of land.

Withholding tax

Withholding tax is assessed on income earned in Montecara by non-resident foreign workers (entertainers, athletes, etc.).

  • General rate, 18%

Indirect taxes

Excises

Tax stamp for cigarettes sold in Montecara

Excises are per unit taxes paid on specific items when they are created or imported.

Air and sea transportation taxes
Category Rate
Transportation of persons by air 5% of ticket price
Transportation of cargo by air Ł16/tonne
Transportation of persons by water
Alcohol excise taxes
Category Rate
Beer or cider
Spirits
Wine
Cannabis and tobacco excise taxes
Category Rate
Cannabis (dried plant matter) Ł15/g
Cigarettes (pack of 20) Ł12
Cigar ≤ 10g Ł7
Cigar > 10g Ł9
Loose tobacco Ł0.65/g
Environmental taxes
Category Rate
Fishing equipment 12%
Fluorinated gases
Landfill waste Ł80/tonne
Ozone-depleting substances
Tires
Foreign insurance taxes
Category Rate
Insurance 4.75% of premium
Reinsurance 1.25% of premium
Fuel and energy taxes
Category Rate
Diesel Ł6.35/l
Kerosene for use in aviation
Kerosene for other uses Ł3.00/l
Gasoline Ł5.75/l
Aviation gasoline
Liquefied petroleum gas (LPG) Ł1.90/l
Compressed natural gas (CNG)
Liquefied hydrogen
Liquid fuel derived from biomass
Liquefied natural gas (LNG)
Natural gas Ł2.55/m³
Heavy fuel oil Ł2.85/l
Coal and coke Ł15.50/Gj
Electricity Ł22/MW·h
Motor vehicle taxes
Category Rate
Aircraft
Passenger cars
Ships

Franchise tax

Mortgage tax

  • 0.9% of each payment

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.

Value-added tax

Surtaxes

  • E-waste recycling surtax, 3%
  • Public broadcasting surtax, 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.

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