BREAKING NEWS
Overhaul of the Tax System?/Reform des Steuersystems?
On request of the Briekish Government and the Presidential Administration
Talks about a new tax system replacing all current taxes is underway for the next economic year
The President, his Administration, the Treasury, the Finance Minister, the Autonomous Economic Regions Authority, The Cabinet of Monetary Research, and the Foreign Minister, bring an important notice.
Section 1:
[Der Neuordnung] New Tax System Referendum/[Der Neuordnung] Neues Steuersystem
There will be a national referendum on the implementation of "Der Neuordnung", the new tax system proposed by many members of Parliament and endorsed by the President. The resolution has already passed in the Parliament. However, under guidelines issued by the Court of Justice, a nationwide referendum was deemed necessary. All details about the new tax system are given below in later sections of this article. The referendum voting process excludes [all date-based restrictions refer to the date 23/09/2023]:
- All under the age of 18
- All non-residents [excluding citizens overseas for less than 10 years]
- All individuals with proven criminal charges who are currently in legal confinement [prisons, house arrest, etc]
- All citizens overseas for more than 10 years
Section 2
Benefits of Land-Value Tax over Property Tax
(i): Property tax is the current taxation system used for taxing the ownership of property assets in Brickston. Property tax takes into account not only the value of the land which an individual owns, but also the value of construction, maintenance and renovation of the structures constructed upon it. This tax is currently collected on a yearly basis at a flat rate of 1.1%.
Property tax is a disincentive for landowners to develop the land that they own, hampering the country's development. It has led to thousands of structures being left in decay amidst the excruciatingly burdening system.
(ii): Land value tax, under this resolution, will replace property taxes entirely. Land value tax, unlike property taxes, taxes properties solely based on the land value and not on what is built on it. It is an incentive for landowners to develop their land and is seen as economically beneficial.
Section 3
Abolishing of Corporate Tax & Capital Gains Tax
Under this proposition, the corporation tax will be abolished, meaning that corporations will no longer be obliged to pay the current 1% flat corporate tax for Briekish businesses, 2% for foreign businesses and 3% for all businesses selling alcohol or tobacco. Capital gains tax will also be fully abolished.
Section 4
Proportion of taxes contributing to federal, provincial and county/regional governments
A1: General Rules
(i): The treasury and the Ministry of Finance is responsible for allocating the federal budget of the state of mainland Brickston and all Overseas Territories, excluding Norden Isle.
(ii): The Federal Government will be responsible for allocating its budget to various sectors and services of the country.
(iii): The Federal Government cannot regulate the budget allocation/handling of provincial governments, but can set benchmarks that provincial governments may be obliged to follow.
(iv): The Federal Government can only set regulations for budget allocation for key services such as education, healthcare and law enforcement in county governments.
(v): Both the Provincial Governments and the County Governments will be obliged to provide its jurisdiction with a Department dedicated to overseeing budget allocation to see if it is adequate.
(vi): The courts of jurisdictions will be accountable to review the budget allocation process and the appropriateness of monetary handling by all individuals/bodies involved.
A2: Proportions for different taxes
(i): Income Taxes
The following tax proportions apply to all provinces on the Briekish Mainland only. See external sources for other information.
Federal Government: 47%
Provincial Governments: 30% [All goes to the province the individual belongs to]
County Governments: 21% [19% goes to the county the individual belongs to]
Municipal Governments: 1%
Special Economic Zones: 0.6%
Other: 0.4%
(ii): National Insurance Contributions
The following tax proportions apply to all of Brickston and its overseas territories.
National Healthcare Service: 46%
Disaster Management Insurance: 17%
National State Pension: 14%
Debt Clearance Interest: 7%
Disability Benefit: 6%
Maternity Allowance: 5%
Bereavement Benefit: 2%
Other: 3%
(iii): Land Value Tax
The following tax proportions apply to only the Briekish mainland.
Federal Government: 60%
Provincial Governments: 10% [All of this goes to the province the individual belongs to]
County Governments: 25% [All of this goes to the county the individual belongs to]
Municipal Governments: 5% [All of this goes to the municipal counties of the province an individual belongs to]
(iv): Value-added Tax
The following tax proportions apply to only the Briekish mainland.
Federal Government: 27%
Provincial Government: 33% [All of this goes to the province the individual belongs to]
County Government: 40% [All of this goes to the county the individual belongs to]
(v): Municipal Council Tax
The taxes are only levied in municipal regions with more than 100,000 inhabitants.
Municipal Council/Borough the taxpayer inhabits: 95%
Municipal Region the Council belongs to: 5%
(vi): Inheritance Tax
The referendum will re-introduce inheritance tax on all of the Briekish Mainland.
Federal Government: 99.99%
Other: 0.01%
Section 5: Tax Brackets
(i): Income Tax
Income Tax has no brackets, and is a tax imposed at a flat rate of 6%. Deductions will continue to exist [non-taxable income].
Deductions:
| Type |
Specifications |
Maximum Amount held in Deductions (at exchange rate €1=D¥1.88) |
| Type A |
Single Taxpayer |
D¥3,600 |
| Type B |
Couple Taxpayer |
D¥3,900 |
| Type C |
Veteran Taxpayer |
D¥4,500 |
Income Tax:
| Type |
Specifications |
Percentage |
| Type A |
Single Taxpayer |
6% |
| Type B |
Couple Taxpayer |
6% |
| Type C |
Veteran Taxpayer |
0% |
(ii): National Insurance Contributions
| Type |
Specifications |
Maximum Amount held in Deductions (at exchange rate €1=D¥1.88) |
| Type A |
Single Taxpayer |
1% |
| Type B |
Couple Taxpayer |
1% |
| Type C |
Veteran Taxpayer |
0% |
(iii): Land Value Tax
| Type |
Specifications |
Percentage of Land value/Value (at exchange rate €1=D¥1.88) |
| Type A |
Land used for Agriculture/Pastures |
7%+D¥1,200 |
| Type B |
Shop/Commercial Area |
8%+D¥4,500 |
| Type C |
Council Housing/Elderly Housing |
6% |
| Type D |
Land owned by a veteran |
7% |
| Type H |
Heritage Estates |
12% |
| Type G |
General [All other] |
16% |
(iv): Value-added Tax
| Type |
Specifications |
Percentage Tax |
| Standard Rate |
Most Goods and Services |
8% |
| Reduced Rate |
Essential Goods and Services [Food, clothing, etc] |
2% |
(v): Inheritance Tax
Inheritance Tax, under this resolution, will be progressive taxation.
(i): System for Briekish Mainland excluding Himmeruckend, Norden Isle & Neue Amsterdamme
| Tax Bracket |
Range |
Percentage Tax |
| Bracket A |
0D¥-15,000D¥ |
1% |
| Bracket B |
15,001D¥-100,000D¥ |
3% |
| Bracket C |
100,001D¥-500,000D¥ |
7% |
| Bracket D |
>500,000D¥ |
11% |
(ii): System for Himmeruckend & Neue Amsterdamme
| Tax Bracket |
Range |
Percentage Tax |
| Bracket A |
0D¥-15,000D¥ |
1% |
| Bracket B |
15,001D¥-100,000D¥ |
3% |
| Bracket C |
100,001D¥-500,000D¥ |
5% |
| Bracket D |
>500,000D¥ |
7% |
(iii): System for Norden Isle
| Tax Bracket |
Range |
Percentage Tax |
| Bracket A |
0D¥-50,000D¥ |
0% |
| Bracket B |
50,001-200,000D¥ |
1% |
| Bracket C |
200,001-700,000D¥ |
2% |
| Bracket D |
>700,000D¥ |
3% |
