Taxation in Thermodolia

Taxation in Thermodolia provides the government of Thermodolia with its main source of funding, and is imposed by the federal government and collected by the National Revenue Service for all Federal taxes under the direction of the Commissioner of National Revenue of Thermodolia. Provinces and local governments also impose taxes, these taxes are collected by the provincial equivalent to the National Revenue Service.

Federal Taxes and Fees

Income Taxes

General Income Tax

The general income tax is broken into single and married filings. The general income tax is a progressive tax.

Single Tax Rates

Single	Tax rate
0-15,000T	0%
15,001-30,000T	10%
30,001-45,000T	12.5%
45,001-60,000T	13.6%
60,001-75,000T	15%
75,001-90,000T	19%
90,001-105,000T	21%
105,001-120,000T	23.6%
120,001-150,000T	27%
150,001-200,000T	32%
200,001-250,000T	36%
250,001-300,000T	40%
>300,001T	45%

Married Tax Rates

Married	Tax rate
0-30,000T	0%
30,001-60,000T	10%
60,001-90,000T	12.5%
90,001-120,000T	13.6%
120,001-150,000T	15%
150,001-180,000T	19%
180,001-210,000T	21%
210,001-240,000T	23.6%
240,001-270,000T	27%
270,001-300,000T	32%
300,001-400,000T	36%
400,001-500,000T	40%
>500,001T	45%

Retirement Income tax

The retirement income tax is also split into single and married filings. The tax only applies to income from retirement accounts, pensions, disability payments, or lottery payments after the age of 65. Only kicks in after age 65, whenever the disability occurs, or if the pension is for a retired veteran. The retirement income tax is a progressive tax.

Single Tax Rates

Single	Tax rate
0-20,000T	0%
20,001-45,000T	1%
45,001-70,000T	2.5%
70,001-105,000T	3%
105,001-300,000T	3.5%
>300,001T	5%

Married Tax Rates

Married	Tax rate
0-40,000T	0%
40,001-85,000T	1%
85,001-130,000T	2.5%
130,001-195,000T	3%
195,001-500,000T	3.5%
>500,001T	5%

Millionaire Income Tax

The Millionaire Income Tax is a flat tax of 15% that is charged to those who earn over 5 Million Therma per year in addition to regular income taxes. The 15% is charged on the entire amount and not just the amount above 5 million.

Corporate Taxes

Corporate Earnings Tax

The Corporate Earnings Tax is a flat tax of 5% on the revenue that corporations take in. Domestic incorporated companies are taxed based on all revenue they make in the world while foreign incorporated companies are only taxed based on the revenue they make in Thermodolia.

Corporate Profits Tax

A tax on corporate profits, this tax is a progressive tax with rates ranging from 5% to 15%. Domestic incorporated companies are taxed on all profits they make in the world while foreign incorporated companies are only taxed on the profits they make in Thermodolia.

Tax Brackets	Tax Rate
0-1,000,000T	5%
1,000,001-5,000,000T	10%
>5,000,001T	15%

Corporate Expatriation Taxes

Any corporation that has profits over 5 million and/or revenues of over 15 million that moves to disincorporate in Thermodolia and move to another nation to incorporate there shall be assumed to be attempting to avoid paying taxes.

Therefore such corporations shall be charged a 45% on all revenues for that year and a 35% for all profits that year. This shall be in addition to any normal taxes they may have to pay.

Corporate Expatriation Taxes	Tax Rate
Revenue Tax	45%
Profit Tax	35%

Offshoring Taxes

Any corporation which practices offshoring shall be subject to a 20% tax on all revenues and 17% tax on all profits. In addition there shall be a 1,000T per five employees that are offshored fee. This is in addition to any other taxes due

Offshoring Taxes	Tax Rate
Revenue Tax	20%
Profit Tax	17%
Employee Tax	200T per employee

Financial Taxes

Financial Securities Transaction Tax

The Thermodolian Securities tax applies to all transactions concluded or executed in Thermodolia with a rate of 0.04% per transacation

Financial Dividends Tax

A tax on all dividends paid out by companies to those who own their stock. Paid by those who receive the dividend payments at a rate of 0.5%

FSEFTA Tax

The FSEFTA tax is a tax on all transactions concluded or executed in Thermodolia. The funds from the tax go to support the operations of the Federal Securities, Exchange, and Futures Trading Administration.

The tax is 0.005T per completed round trip transaction.

Tariffs

Import Tariffs

All import tariffs range from 5% to 40%. This is a general list, tariffs can vary depending on trade agreements, amount and types of products, nation of origin, and other factors.

Export Tariffs

All export tariffs range from 15% to 67%. This is a general list, tariffs can vary depending on trade agreements, amount and types of products, nation of origin, and other factors.

Payroll Taxes

Unemployment Tax

Taxed only to employers, the 6.2% is taxed on the first 20,000 yearly gross earnings of a worker. Once that 20,000 has been reached then the employer stops paying the tax for that employee. The tax funds the national unemployment fund which is managed by the National Work and Wage Assistance Program. The fund is used to support unemployment benefits in the provinces.

Wage Assistance Tax

The wage assistance tax is split between the employee and the employer. Each one pays a 3% tax on all pre-tax earnings earned by each employee. The 6% total tax is used to partly fund the National Work and Wage Assistance Program.

Excise Taxes

Air Cargo and Passenger Taxes

Taxes applied to the airlines on the amount of passengers and cargo carried.

Junk Food Tax

All junk foods, foods which have a high sugar content and low Nutritional value, are subject to a .50T tax per ten grams of junk food. Pure sugar is not considered to be a junk food.

Carbon Tax

This is a tax solely on carbon emissions and is in addition to the Environmental Emissions Tax.

The tax will be 50T per tonne of carbon emitted. Companies which reduce at least 70% of their carbon emissions for that year can obtain a credit on the amount reduced equivalent to the carbon tax. The credit is non refundable.

Environmental Emissions Tax

Taxed as the amount of emissions a company produces. Net zero emission companies can get a tax credit of up to 2 million. Companies that are net carbon negative can get a tax credit of up to 10 million. Tax Credit is non refundable. The rate ranges from 40% to 70%

Opioid Prescriber Tax

All opioids prescriptions that are written by prescribers and filled by pharmacies will be subject to a 1.50T per pill tax. This tax can not be passed onto the consumer, if the cost has been found to have been passed on than the company and prescriber will be subject to a fee which will amount to no less than 78% of the income/earnings for that year/s.

Route Tax

Paid by Airlines, Railroads, Trucking Companies, and Buss/cab transportation: 3.50T per km. However there are certain exemptions. For companies which fuel their fleet through fully green technologies with no fossil fuels they shall be totally exempt. For companies which only power part of their fleet through green technologies they shall receive a credit which shall match the percentage of their green fleet, this credit is non refundable.

For companies that use green fuels but are still using a fossil fuel base they shall be charged only 1.50T per km.

For railroad companies they shall only be charged the route tax on sections of track that are not electrified.

Unwanted Advertising Tax

Charged at 34% to those who use bulk mail advertisements, pop up advertisements, random junk Mail, and other things.

The 34% is taxed from the revenue brought from such advertisements and the advertisements themselves.

Federal Telephone Tax

2.5% excise tax on local and long distance service calls, emergency calls are exempt as are certain toll free numbers.

Other Taxes

Non-Profit Tax

All non-profits are charged with a 1% tax on land and property owned or 1% of any income, whichever is greater.

Billionaire Net Worth Tax

All persons who have a net worth of over 2 Billion shall be subject to a 5% tax on that. This is in addtion to any other taxes.

Gift Tax

All persons who gift amounts or items that value over 3 million are subject to a 15% gift tax on the value of the gift.

Does not apply if the gift is being given to a spouse.

Lottery Taxes

All lottery winnings starting at 15,000T and above are subject to an immediate 2% flat tax upon receipt of the winnings and then will also be subject to income taxes for that year. This only applies to lump sum winnings, annuity winnings are subject to regular income taxes upon receipt of the annuity amount.

There is no charge for lottery winnings that are deposited into a annuity account until that money is withdrawn.

All lottery winnings from 1,000T to 14,999T are just subject to income taxes for that year. All winnings from 999T and below shall be exempt from federal taxes but may be subject to provincial and local taxes.

Expatriation Tax

Any person with a net worth of 3 million or an average tax burden of 150,000T who moves to a different nation permanently will be assumed to being doing so for tax avoidance.

Therefore such people will be charged with a 45% tax on the net worth in addition to all other taxes.

Retirement Fees

These are your money, and can be returned to you. However if you withdraw before the age of 65 you will be hit with a full income tax and not the retirement income tax.

Wage Security Fee

Taxed at 2% of your paycheck only for those who don’t have a Retirement Account either public or private.

Thermodolian National Retirement Corporation Fee

Taxed at 6% of your paycheck only for those who have a retirement account with the Thermodolian National Retirement Corporation.

Other Fees

Firearms

In order to be a federally registered firearm dealer you must pay 500T

National University Education Fee

If a person drops out with less than a year enrolled they shall pay nothing. If they drop out with more than a year enrolled but less than two years they shall pay back 25%, unless the major is in national need or there is a waiting list for classes as then they shall pay back 50%

If a person drops out with more than two years enrolled but less than three years than they shall pay back 50%, unless the major is in national need or there is a waiting list for classes as then they shall pay back 75%. If a person has been enrolled for longer than three years they shall pay back 100%

Air and Sea Transport Fee

Charged to all aircraft and ships which transit Thermodolian airspace and waters. Variable but no more than 50T per craft per entry

Docking and Landing Fee

Charged to all aircraft and ships which enter Thermodolian airspace and waters in order to dock or land. Variable but no more than 150T per craft per docking/landing.

Ship Registration Fee

Costs vary with size, class, and age of ship, registration lasts four years

Aircraft Registration Fee

Costs vary with size, class, and age of aircraft, registration lasts two years

Cruise Ship Passenger Fee

Charged to the passenger when the ticket is purchased.

45T for internal Thermodolian cruises (ie no foreign docking) 90T for external cruises

Financial Stability Contribution Fee

Charged to banks and other financial institutions with assets over 25 Billion. Currently at a flat rate of 15%, yearly. All revenues go to the Federal Financial Insurance Fund

Passport Fee

All persons, with the exception of government and military personnel, are subject to a 55T charge for passports. Passports shall remain registered for five years.