Taxation in Darmen - Revision history

>Darmen: /* Local taxes */

2020-11-20T01:58:26Z

Local taxes

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>Darmen: /* Local taxes */

2020-11-20T01:58:26Z

Local taxes

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	Furthermore, each municipality receives LGF funding in equal proportion to their budget deficit as a percentage of the Total Municipal Budget Deficit (TMBD). The amount of LGF funding available to the municipalities is limited however, the total is set by the central government budget for LGF funding, plus any unused funds from the previous year. If one municipality were to lower their property tax and therefore increase its budget deficit, the amount of LGF funding it would receive would increase. However, the LGF funds received by all other municipalities would correspondingly decrease.		Furthermore, each municipality receives LGF funding in equal proportion to their budget deficit as a percentage of the Total Municipal Budget Deficit (TMBD). The amount of LGF funding available to the municipalities is limited however, the total is set by the central government budget for LGF funding, plus any unused funds from the previous year. If one municipality were to lower their property tax and therefore increase its budget deficit, the amount of LGF funding it would receive would increase. However, the LGF funds received by all other municipalities would correspondingly decrease.

	To prevent [[w:Race to the bottom\|race to the bottom]] tactics or retaliation by one municipal council against another, the principle of ''Municipal Solidarity'' is enshrined in national legislation regulating municipal governance. The principle of municipal solidarity requires considerable cooperation between municipal councils in determining their budgets and property tax rates. The rate at which property is taxed by municipal councils is determined by the relevant municipal council within the framework of the Municipal Solidarity system. The average property tax rate in 2041 was 4.32%.		To prevent [[w:Race to the bottom\|race to the bottom]] tactics or retaliation by one municipal council against another, the principle of ''Municipal Solidarity'' is enshrined in national legislation regulating municipal governance. The principle of municipal solidarity requires considerable cooperation between municipal councils in determining their budgets and property tax rates.

			===Property tax===
			The rate at which property is taxed by municipal councils is determined by the relevant municipal council within the framework of the Municipal Solidarity system. The average property tax rate in 2041 was 4.32%.

	===Landfill tax===		===Landfill tax===

>Darmen at 01:57, 20 November 2020

2020-11-20T01:57:48Z

← Older revision	Revision as of 01:57, 20 November 2020
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>Darmen at 01:57, 20 November 2020

2020-11-20T01:57:48Z

← Older revision		Revision as of 01:57, 20 November 2020
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	'''Taxation in Darmen''' is imposed at the national, regional and municipal levels. Taxation at the national and regional levels is generally [[w:Progressive tax\|progressive]], while taxes at the municipal level are generally [[w:Flat tax\|flat]]. The [[National Tax Collection Agency (Darmen)\|National Tax Collection Agency]] (NTCA) is responsible for collecting taxes and depositing them into the nation's treasury.		'''Taxation in Darmen''' is imposed at the national, regional and municipal levels. Taxation at the national and regional levels is generally [[w:Progressive tax\|progressive]], while taxes at the municipal level are generally [[w:Flat tax\|flat]]. The [[National Tax Collection Agency (Darmen)\|National Tax Collection Agency]] (NTCA) is responsible for collecting taxes and depositing them into the nation's treasury.

	==National taxes==		==National taxes==
	All Darmeni citizens and businesses operating in Darmen pay national taxes, except those who reside in Esportivan Darmen and come under a separate regional taxation regime. With a few exceptions (noted below), the current tax rates were set by the Revenue Act of 2045 and took effect on January 1, 2046.		All Darmeni citizens and businesses operating in Darmen pay national taxes, except those who reside in Esportivan Darmen and come under a separate regional taxation regime. With a few exceptions (noted below), the current tax rates were set by the Revenue Act of 2045 and took effect on January 1, 2046.
	===Income tax===		===Income tax===
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	===Payroll tax===		===Payroll tax===
	Darmen's main payroll tax is the Universal Social Contribution (USC), which helps to cover the costs of the National Pension scheme and Darmen's [[w:Universal health care\|universal healthcare]] system. The rate of the USC is 1.40% of total income from wages, with half (0.70%) being paid by the employee and the remaining half by the employer. If a taxpayer is [[w:Self-employment\|self-employed]], they are responsible for the full 1.40%. The USC was implemented by the Revenue Act of 2038 and began on December 13, 2038.		Darmen's main [[w:Payroll tax\|payroll tax]] is the Universal Social Contribution (USC), which helps to cover the costs of the National Pension scheme and Darmen's [[w:Universal health care\|universal healthcare]] system. The rate of the USC is 1.40% of total income from wages, with half (0.70%) being paid by the employee and the remaining half by the employer. If a taxpayer is [[w:Self-employment\|self-employed]], they are responsible for the full 1.40%. The USC was implemented by the Revenue Act of 2038 and began on December 13, 2038.

	Additionally, the NTCA operates a [[w:Pay-as-you-earn tax\|Pay-as-You-Earn]] (PAYE) program that allows employees to have a certain percentage of their wages withheld to cover their income tax and lessen the amount due at the end of the tax year. The program is voluntary and the amount of wages to be withheld is decided on by each individual taxpayer.		Additionally, the NTCA operates a [[w:Pay-as-you-earn tax\|Pay-as-You-Earn]] (PAYE) program that allows employees to have a certain percentage of their wages withheld to cover their income tax and lessen the amount due at the end of the tax year. The program is voluntary and the amount of wages to be withheld is decided on by each individual taxpayer.

	===Corporate tax===		===Corporate tax===
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	====Street food vendor tax====		====Street food vendor tax====
	[[w:Street food\|Street food]] vendors are not charged corporate tax, rather they are charged a separate Street Food Vendor Tax (SFVT). The flat rate of 3.00% on all income, was set by the Economic Activities Act of 2038 and took effect on January 11, 2038.		[[w:Street food\|Street food]] vendors are not charged corporate tax, rather they are charged a separate Street Food Vendor Tax (SFVT). The flat rate of 3.00% on all income, was set by the Economic Activities Act of 2038 and took effect on January 11, 2038.

	====Petroleum profits tax====		====Petroleum profits tax====
	In addition to the standard corporate income tax, a Petroleum Profits Tax (PPT) is levied on Darmeni companies involved in the [[w:Petroleum industry\|petroleum industry]]. The rate of PPT is 40.00% of all profits up to $999,999 and 55.00% of all profits greater than $1,000,000.		In addition to the standard corporate income tax, a Petroleum Profits Tax (PPT) is levied on Darmeni companies involved in the [[w:Petroleum industry\|petroleum industry]]. The rate of PPT is 40.00% of all profits up to $999,999 and 55.00% of all profits greater than $1,000,000.

	====Tobacco profits tax====		====Tobacco profits tax====
	In addition to the standard corporate income tax, a Tobacco Profits Tax (TPT) is levied on Darmeni companies involved in the [[w:Tobacco industry\|tobacco industry]]. The rate of TPT is 11.00% of all profits greater than $500,000.		In addition to the standard corporate income tax, a Tobacco Profits Tax (TPT) is levied on Darmeni companies involved in the [[w:Tobacco industry\|tobacco industry]]. The rate of TPT is 11.00% of all profits greater than $500,000.

	===Capital gains tax===		===Capital gains tax===
	The current rates for Capital gains tax in Darmen are set by the Revenue Act of 2040 and took effect on February 6, 2040. Any income earned from the sale of a home that qualifies as a primary residence is exempted from taxation, up to a limit of $250,000.		The current rates for Capital gains tax in Darmen are set by the Revenue Act of 2040 and took effect on February 6, 2040. Any income earned from the sale of a home that qualifies as a primary residence is exempted from taxation, up to a limit of $250,000.
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	===Import tax===		===Import tax===
	[[w:Tariff\|Tariffs]] are imposed on all imports into Darmen. Products imported from the nation of [[Eshan]] to the Port of Rogerton receive a 50.00% discount on tariff charges for the period of 2043-2073 as part of the Echani ''Path to Prosperity'' program.		[[w:Tariff\|Tariffs]] are imposed on all imports into Darmen. Products imported from the nation of [[Eshan]] to the Port of Rogerton receive a 50.00% discount on tariff charges for the period of 2043-2073 as part of the Echani ''Path to Prosperity'' program.
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	===Value-added tax===		===Value-added tax===
	Darmeni tax legislation has provided for a fairly broad definition of essential goods and services as it pertains to [[w:Value-added tax\|value-added tax]] (VAT). In many instances, goods and services which would be subject to VAT in other countries are not in Darmen. Residential housing is exempted from VAT up to a value of $2,000,000. Restricted products refers to those goods which require a license to purchase, such as firearms and ammunition.		Darmeni tax legislation has provided for a fairly broad definition of essential goods and services as it pertains to [[w:Value-added tax\|value-added tax]] (VAT). In many instances, goods and services which would be subject to VAT in other countries are not in Darmen. Residential housing is exempted from VAT up to a value of $2,000,000. Restricted products refers to those goods which require a license to purchase, such as firearms and ammunition.
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	===Tobacco tax===		===Tobacco tax===
	An [[w:Excise tax\|excise tax]] is charged on all tobacco products sold in Darmen. The tobacco tax is in addition to the value-added-tax.		An [[w:Excise tax\|excise tax]] is charged on all tobacco products sold in Darmen. The tobacco tax is in addition to the value-added-tax.
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	===Motor vehicle sales tax===		===Motor vehicle sales tax===
	Luxury motor vehicles are defined as any motor vehicles in [[w:Car classification\|segments]] [[w:E-segment\|E]], [[w:F-segment\|F]] and [[w:S-segment\|S]] which have a total value greater than $50,000. The luxury rate is charged in addition to the general rate on luxury motor vehicles.		Luxury motor vehicles are defined as any motor vehicles in [[w:Car classification\|segments]] [[w:E-segment\|E]], [[w:F-segment\|F]] and [[w:S-segment\|S]] which have a total value greater than $50,000. The luxury rate is charged in addition to the general rate on luxury motor vehicles.
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	===Fuel tax===		===Fuel tax===
	A fuel tax of $1.89 per gallon is charged on all purchases of [[w:Gasoline\|petrol]] except when the government declares a "fuel tax holiday". Fuel tax holidays are generally declared a day or two prior to certain [[Public holidays in Darmen\|public holidays in Darmen]] (like Easter, Thanksgiving and Christmas when rates of travel are particularly high) and last until the day after the respective holiday.		A fuel tax of $1.89 per gallon is charged on all purchases of [[w:Gasoline\|petrol]] except when the government declares a "fuel tax holiday". Fuel tax holidays are generally declared a day or two prior to certain [[Public holidays in Darmen\|public holidays in Darmen]] (like Easter, Thanksgiving and Christmas when rates of travel are particularly high) and last until the day after the respective holiday.

			==Local taxes==
			Although municipal council's main source of income is property taxes, funding from central government, in the form of grants from the Local Government Fund (LGF) is a highly influential income source. Municipalities which make a profit in any given year are not eligible for LGF funding, therefore municipalities normally set their property tax rates low enough that they will run a small deficit in the year's budget. The LGF funds normally cover this deficit so that municipalities will end each year with a balanced budget.

			Furthermore, each municipality receives LGF funding in equal proportion to their budget deficit as a percentage of the Total Municipal Budget Deficit (TMBD). The amount of LGF funding available to the municipalities is limited however, the total is set by the central government budget for LGF funding, plus any unused funds from the previous year. If one municipality were to lower their property tax and therefore increase its budget deficit, the amount of LGF funding it would receive would increase. However, the LGF funds received by all other municipalities would correspondingly decrease.

			To prevent [[w:Race to the bottom\|race to the bottom]] tactics or retaliation by one municipal council against another, the principle of ''Municipal Solidarity'' is enshrined in national legislation regulating municipal governance. The principle of municipal solidarity requires considerable cooperation between municipal councils in determining their budgets and property tax rates. The rate at which property is taxed by municipal councils is determined by the relevant municipal council within the framework of the Municipal Solidarity system. The average property tax rate in 2041 was 4.32%.

			===Landfill tax===
			A [[w:Landfill tax\|landfill tax]] of $36.00 per [[w:Tonne\|tonne]] of waste is charged on municipal residents and businesses. The rate of the landfill tax is set by [[Parliament of Darmen\|Parliament]], but the funds are designated for use by the municipal councils.

	{{Darmen topics}}		{{Darmen topics}}
	[[Category:Darmen]]		[[Category:Darmen]]

>Darmen at 03:34, 10 November 2020

2020-11-10T03:34:03Z

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>Darmen at 03:34, 10 November 2020

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-'''Taxation in Darmen''' is imposed at the national, regional and municipal levels.  Taxation at the national and regional levels is generally [[w:Progressive tax|progressive]], while taxes at the municipal level are generally [[w:Flat tax|flat]].  The [[National Tax Collection Agency (Darmen)|National Tax Collection Agency]] is responsible for collecting taxes and depositing them into the nation's treasury.
+'''Taxation in Darmen''' is imposed at the national, regional and municipal levels.  Taxation at the national and regional levels is generally [[w:Progressive tax|progressive]], while taxes at the municipal level are generally [[w:Flat tax|flat]].  The [[National Tax Collection Agency (Darmen)|National Tax Collection Agency]] (NTCA) is responsible for collecting taxes and depositing them into the nation's treasury.
 ==National taxes==
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 ===Corporate tax===
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 ===Capital gains tax===
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-===Street food vendor tax===
+===Motor vehicle sales tax===
-[[w:Street food|Street food]] vendors are not charged corporate tax, rather they are charged a separate Street Food Vendor Tax (SFVT).  The flat rate of 3.00% on all income, was set by the Economic Activities Act of 2038 and took effect on January 11, 2038.
+Luxury motor vehicles are defined as any motor vehicles in [[w:Car classification|segments]] [[w:E-segment|E]], [[w:F-segment|F]] and [[w:S-segment|S]] which have a total value greater than $50,000.  The luxury rate is charged in addition to the general rate on luxury motor vehicles.
 {{Darmen topics}}
 [[Category:Darmen]]

>Darmen: /* Capital gains tax */

2020-11-09T05:18:41Z

Capital gains tax

← Older revision	Revision as of 05:18, 9 November 2020
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>Darmen: /* Capital gains tax */

2020-11-09T05:18:41Z

Capital gains tax

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	\| 3		\| 3
	\| $5,000-$7,999		\| $5,000 – $7,999
	\| 27.50%		\| 27.50%
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>Darmen: /* Corporate tax */

2020-11-09T05:18:16Z

Corporate tax

← Older revision	Revision as of 05:18, 9 November 2020
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>Darmen: /* Corporate tax */

2020-11-09T05:18:16Z

Corporate tax

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	===Corporate tax===		===Corporate tax===
	Darmeni corporations are classified into one of three classes based on the number of years they have been in operation. Class A is for businesses in their first two years of operation; Class B for businesses in their third through fifth year of operation; and Class C for businesses ~~who~~ have been in operation for six years or more.		Darmeni corporations are classified into one of three classes based on the number of years they have been in operation. Class A is for businesses in their first two years of operation; Class B for businesses in their third through fifth year of operation; and Class C for businesses which have been in operation for six years or more.
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