Taxation
Taxation in Xuande-Xiphoi is controlled by the Amalgamation Taxation Administration Act, 2009. The Act was created to better facilitate the delegation of powers of the Republics & Kingdom to the Amalgamation Government and to Regional Government Authorities. The Act directs the Government of Xuande-Xiphoi to administer taxation to accumulate revenue with four broad-based taxes:
Xuande-Xiphoi levies additional taxes and fees where such taxes and fees improve social outcomes or market efficiency through better price signals, such as alcohol taxes or carbon taxes.
Xuande-Xiphoi also levies user charges for some services (such as the issuance of drivers licences) as a mechanism for signalling the
underlying resource cost of publicly provided goods and services.
All taxation is payable to the Office of Internal Revenue (OIR) utilising in-person, postal, and digital payments through the X.X. Government's Services XX app.
- personal income, assessed on a more comprehensive basis;
- business income, designed to support economic growth;
- rents on natural resources and land; and
- private consumption.
Xuande-Xiphoi levies additional taxes and fees where such taxes and fees improve social outcomes or market efficiency through better price signals, such as alcohol taxes or carbon taxes.
Xuande-Xiphoi also levies user charges for some services (such as the issuance of drivers licences) as a mechanism for signalling the
underlying resource cost of publicly provided goods and services.
All taxation is payable to the Office of Internal Revenue (OIR) utilising in-person, postal, and digital payments through the X.X. Government's Services XX app.
Personal Income Taxes
Xuande-Xiphoi utilises a progressive tax system. Tax is paid as a rate on taxable income within certain ranges. Xuande-Xiphoi has two income tax ranges; one for Xuande-Xiphoian Citizens and Nationals, and the other for Open Border Visa Holders, which is a higher rate with no tax-free entitlement.
Income Band (in XX€) |
XX Citizens & Nationals |
Open Border Visa Holders |
€ 50,000,001 and higher |
63% |
68% |
€ 5,000,001 to € 50,000,000 |
53% |
58% |
€ 1,500,001 to € 5,000,000 |
44% |
49% |
€ 900,001 to € 1,500,000 |
36% |
41% |
€ 450,001 to € 900,000 |
29% |
34% |
€ 150,001 to € 450,000 |
23% |
28% |
€ 92,501 to € 150,000 |
18% |
23% |
€ 92,500 and below |
0% |
10% |
All income tax is assessed on an individual basis.
Taxable income includes all personal income with the exception of listed exemptions, which could include:
Through a taxpayer's Amalgamation Taxation Reference Number (ATRN) Xuande-Xiphoi utilises a pay-as-you-go system for tax, and employers are obligated to withhold an appropriate amount of tax on behalf of the taxpayer.
Fringe benefits taxes are also payable in Xuande-Xiphoi.
Capital Gains Taxes are also payable in Xuande-Xiphoi for profits in capital tradin, minus personal assets which are discounted from this tax. The current rates of capital gains tax, which are uniform across Xuande-Xiphoi, are:
Capital losses cannot be credited against income tax.
Note that if an individual has held a capital asset for more than 12 months, the gain is first discounted by 50% for individual taxpayers, or by 33.3% for superannuation funds business profts.
Superannuation is designed to be the long-term replacement for the pension system since 1989, and as such there are minimal taxes on superannuation. These conditions include:
Taxable income includes all personal income with the exception of listed exemptions, which could include:
- Social Development Payments made to individuals by the Ministry of Social Development;
- Income of diplomats, where exempted by the Diplomatic & Consular Privileges and Immunities Act 2009.
- Payments and settlements as a result of Court decisions, when exempted by the judicial officer.
- Payments made to Citizens for service on the Citizen's Assembly.
- Payments made to people actively engaged in overseas operational service as a member of, or supporting, a disciplined force of Xuande-Xiphoi.
Through a taxpayer's Amalgamation Taxation Reference Number (ATRN) Xuande-Xiphoi utilises a pay-as-you-go system for tax, and employers are obligated to withhold an appropriate amount of tax on behalf of the taxpayer.
Fringe benefits taxes are also payable in Xuande-Xiphoi.
Capital Gains Taxes are also payable in Xuande-Xiphoi for profits in capital tradin, minus personal assets which are discounted from this tax. The current rates of capital gains tax, which are uniform across Xuande-Xiphoi, are:
- For an individual, the same as the applicable rate of income tax in that financial year.
- For superannuation, a maximum of 15% for investment earnings and a maximum of 10% for capital gains.
- For a company, 30%.
Capital losses cannot be credited against income tax.
Note that if an individual has held a capital asset for more than 12 months, the gain is first discounted by 50% for individual taxpayers, or by 33.3% for superannuation funds business profts.
Superannuation is designed to be the long-term replacement for the pension system since 1989, and as such there are minimal taxes on superannuation. These conditions include:
- A maximum tax rate of 1% on personal super contributions, regardless of national status, to a cap of €200,000 per annum. Employer contributions taxed at the appropriate personal income tax rate, as a separate payment to the rest of income tax.
- Tax-free withdrawals for individuals once the permitted withdrawals period begins.
- No tax on investment returns passed to superannuation account holders.
Business Income Taxes
Businesses in Xuande-Xiphoi are subject to Business Income Taxation, which is a flat rate of 25% of business income. Depending on the size of a business or company, businesses are entitled to a tax write-off of depreciating assets at a variety of values.
Small businesses can access a range of concessions including payment and reporting options; the a small business must have an annual turnover less than €20 million, and net assets worth less than €24.5 million.
Business non-profits also receive a wide array of tax concessions.
Small businesses can access a range of concessions including payment and reporting options; the a small business must have an annual turnover less than €20 million, and net assets worth less than €24.5 million.
Business non-profits also receive a wide array of tax concessions.
Natural Resources & Land Taxes
Xuande-Xiphoi utilises a uniform resource rent tax which applies to the utilisation of non-renewable resources. The URRT applies to non-renewable resource (oil, gas and minerals) projects, except for lower value minerals for which it can be expected to generate no net benefits.
The rate of the URRT is 40%.
Xuande-Xiphoi has abolished stamp duties, and fees on the transfer of interests in a resource project except those related to administrative costs.
Stamp duties have been abolished in Xuande-Xiphoi. Instead, Xuande-Xiphoi charges a broad land tax, designed to be levied on as broad a base as possible.
Land tax is determined using an increasing marginal rate schedule, with the lowest rate being zero, with thresholds determined by the per-square-metre value. Land tax applies to all land in Xuande-Xiphoi, however low-value land, such as most agricultural land, will not face a land tax liability where its value per square metre is below the lowest rate threshold.
A land tax imposes an annual tax liability on the unimproved value of land.
Land tax applies per land holding, not on an entity’s total holding, in order to promote investment in land development. Similarly to income tax, land tax is assigned based on a bracketed system.
Rates are charged by Regional Government Authorities (but administered by the national government for simplicity for the taxpayer), which add an additional percentage unit to the national government's uniform land tax rates. This varies, and thereby varies the rate of land tax, in each Regional Government Area.
The rate of the URRT is 40%.
Xuande-Xiphoi has abolished stamp duties, and fees on the transfer of interests in a resource project except those related to administrative costs.
Stamp duties have been abolished in Xuande-Xiphoi. Instead, Xuande-Xiphoi charges a broad land tax, designed to be levied on as broad a base as possible.
Land tax is determined using an increasing marginal rate schedule, with the lowest rate being zero, with thresholds determined by the per-square-metre value. Land tax applies to all land in Xuande-Xiphoi, however low-value land, such as most agricultural land, will not face a land tax liability where its value per square metre is below the lowest rate threshold.
A land tax imposes an annual tax liability on the unimproved value of land.
Land tax applies per land holding, not on an entity’s total holding, in order to promote investment in land development. Similarly to income tax, land tax is assigned based on a bracketed system.
Rates are charged by Regional Government Authorities (but administered by the national government for simplicity for the taxpayer), which add an additional percentage unit to the national government's uniform land tax rates. This varies, and thereby varies the rate of land tax, in each Regional Government Area.
Private Consumption Taxes
Xuande-Xiphoi applies a Goods & Service Tax to most purchases, at a rate of 9% at the national level, and a rate between 1% and 3% determined by different Regional Government Authorities in addition, which is disbursed to those authorities.