1579-1580 Nyland Federal Assembly

[Hadash]

Tax Reform Act of 1580 (TRA80)
Assembly Bill 1580.018
Drafted by: New Centrist List Submitted by: Matthias Fromsen, New Centrist List Submit Date: Marth 1580 Hearing Date: 21 Zechyr, 1580 Revision Date: Summary: This bill ammends the Tax Reform Act of 1569 (TRA69) and reforms the tax structure of Nyland. The goal is to create a more fair and balanced taxation system, which allows both increasing social spending and a balanced budget. Section 1: Individual Income Tax Rates Reform I. All individual income falling between the range $0-24,499 will have an income tax of 0% II. All individual income falling between the range $24,500-39,999 will have an income tax of 11% III. All individual income falling between the range $40,000-79,999 will have an income tax of 26% IV. All individual income falling between the range $80,000 and above will have an income of 48% This change will be effective immediately (next fiscal year). Section 2: Corporate Income Tax Rates Reform Corporate Income Tax Rates will be as such: I. All corporate income will have an income tax rate of 18% II. All business entities with income at or below 50,000 and which created before Alvan, 1580 will have a corporate income tax rate of 15% until Vintyr 28, 1582. From that date, their corporate tax rate, as the rest of business entities, will be fixed at 18%. This change will be effective immediately (next fiscal year), with the exemption mentioned above. Section 3: Value-Added Tax Reform The following tax rates will be applied: I. Standard Rate: 22% II. Reduced Rate: 8% III. Zero Rate: 0% The Standard VAT rate of 22% is applied to all supplies of good or services, unless a specific measures provides for the reduced, zero rate, or simple exemption. Examples of good and services taxable at the reduced rate (8%) I. Foodstuffs II. Textbooks for primary and secondary school. III. Cultural goods declared of general interest by the Department of Culture IV Passenger transport V. Hotel accomodation Examples of good  and services taxable at the Zero Rate (0%) I. Exports of Goods II. Intra-Community supplies of goods III. Supplies to ships and aircraft used for international transportation Examples of exempt supplies of goods and services The term “exempt supplies” refers to supplies of goods and services that are not liable to tax and that do not give rise to a right of input tax deduction I: Supply of immovable property II: Medical services III: Finance IV: Insurance V: Betting and gaming VI: Education The change will be effective immediately (next fiscal year)