Taxation

From The Kodiak Republic Wiki

Taxes

Section 1 - Individual Income Tax[1]

1.1 - A progressive tax is enacted on all earnings by citizens of the Republic set at the median annual tax rate of 37%, and sets Income Tax Brackets as follows:
1.1.1 The first ₣15,000 of Income shall be tax free
1.1.2 ₣15,000 - ₣30,000 shall be taxed at 20%
1.1.3 ₣30,000 - ₣60,000 shall be taxed at 37%
1.1.4 ₣60,000 - ₣120,000 shall be taxed at 56%
1.1.5 ₣120,000 and over shall be taxed at 72%

Section 2 - Corporation Tax[2]

2.1 Corporations shall be taxed at 15% of total reported gross profitable revenue.
2.2 Small Businesses shall be taxed at 10% of their annual taxable income.
2.3 Employee-Owned Businesses shall be taxed at 10% of their annual taxable income.

Section 3 - Capital Gains Tax[2]

3.1 Any net physical or financial capital income of an individual, organisation, or enterprise shall be taxed at 25% of total reported capital gains after deductions.
3.2 There is a one-to-one deduction of capital losses to present capital gains if such capital losses were accrued within the previous three financial years.

Section 4 - Land Value Tax[2]

4.1 The value of privately owned and managed land shall be taxed at 40%.

Section 5 - Under-utilised Residential Property Tax[3]

5.1 The value of residential property left vacant for more more than six months in a calendar year shall be taxed at 25%.

Section 6 - Point of Sales Tax[3]

6.1 All goods and services shall be taxed at 7% of the gross untaxed sale price.

Section 7 - Petroleum Sales Tax[3]

7.1 All petroleum, gasoline, butane, diesel, and other oil based fuels shall be taxed at 15% of the gross sale price.

Section 8 - Tobacco and Alcohol Sales Tax

8.1 All cigarettes, cigars, snuff, chew, loose tobacco, and other tobacco products to be taken internally shall be taxed at 30% of the gross sale price.[4]
8.2 All beer, wine, spirits, and all other ethanol-containing products to be taken internally shall be taxed at 35% of the gross sale price.[4]

Section 9 - Recreational Drugs Tax[3]

9.1 All legal Schedule B and Schedule D recreational drugs shall be taxed at 45% of the gross sale price..
9.2 This tax does not apply for any substance acquired on the advice and prescription of a practising and certified medical professional.

Section 10 - Luxury Goods Tax[3]

10.1 Haute couture/designer/custom fitted clothing, accessories such as jewellery and high-end watches, high-end automobiles (Sports cars, SUVs, EVs, Super Cars, Race Cars), private yachts, and wine costing more than 150 florins per 375mL bottle shall be taxed at 9% of the gross sale price.

Section 11 - Vehicle Registration Fee[3]

11.1 Any vehicle registered for use on any public road shall incur a fee of ₣50 per quarter.

Credits

Section 1 - Small Enterprise Creation Investment Credit[1]

1.1 0.50 florin-per-florin deduction from earned income for investments into any Kodiaker-majority-owned SME[5] established within the last 10 years.
1.2 Capped at 37,500 florins per quarter.

Section 2 - Health Insurance Credit[1]

2.1 0.125 florin-per-florin deduction from earned income for payments or premiums toward any insurance plan contracted to at least 11 months or longer.
2.2 Capped at 6,250 florins per quarter.

Section 3 - Education Fee Credit[1]

3.1 0.25 florin-per-florin deduction from earned income for tuition or fees used for any Kodiaker between the ages 4 and 18 to attend a non-state educational institution.
3.2 Capped at 6,250 florins per year.

Section 4 - Foreign Investment Credit[6]

4.1 600 million florins per quarter distributed by the FIC[7] to foreign individuals or private entities who have invested at least 1,000,000 florins worth of assets or cash into the Kodiak economy.

Section 5 - Renewable Energy Systems Credit[8]

5.1 10 million florins per quarter to residents and businesses that invest in renewable energy systems, including solar panels and energy-efficient appliances.

Sources

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