Taxation
Taxation is very low in Meekinos but it does exist. It is to pay for essential services, such as fire protection services, healthcare services, education, and other government services. A very small portion of it goes to social assistance, which is incredibly difficult for anyone to qualify for. Those who qualify are often severely disabled and unable to work to support themselves. The money they receive is a small token amount in order to relieve the burden on the family if the income of the family is insufficient to allow the family to have adequate living conditions. To benefit from any of the essential services, a person must be a citizen of Meekinos. Foreign nationals visiting are to pay for their essential services. Fire protection is the only exemption.
Police services exist but like public transpiration, they are both privatized and run by private corporations, which are subject to basic government regulations.
A small portion of taxes collected in Meekinos are designed to aid in commerce. Corporations seeking to do research and operation expansion can apply for an economic grant to aid in offsetting the cost of doing the research. The grants are also there to aid companies in the creation of new jobs. These grants are given only to Meekinosian corporations. However, regulators have been known to given the grants if the foreign corporation pays a "processing fee".
Personal Income Tax *
Income tax, although low, does exist in Meekinos. Income tax is calculated on a sliding scale, starting at 3% of total income up to 9%. Very few people pay more than 8% due to numerous loopholes found in the Meekinosian National Taxation Code. The vast majority of citizens pay about 4-6% income tax. Until a few years ago, taxation was pegged at 10%-15% but subsequent governments brought it down. The accompanying legislation, the taxation code, entrenched the maximum taxation at 10%, however, a subsequent amendment reduced it to 9%, and made it illegal for the government to introduce new personal taxes.
Taxation is not applied to lottery winnings, inheritance or money. It is also not applied to retirement savings, pensions or social assistance.
Corporate Tax *
There are two different set of taxation rates for corporations carrying on business in Meekinos. Those which are domestic corporations, or Meekinosian in origin pay a flat corporate tax rate of 3%. Non-incorporated businesses pay 2% per annum. Foreign owned corporations which have at least 40% Meekinosian ownership pay a flat taxation rate of 4.5% while those who have less pay 6% per annum. The auditors responsible for collecting these taxes have been known to turn a blind eye to foreign corporations who pay 3% if they receive their "filing fee".
Sales Tax
The national government does not levy a sales tax on goods and services. The jurisdiction for this tax falls to each individual prefecture to determine its rate of sales taxation. All of the prefectures have set their sales tax at 2.5% to honour an accord, the Good and Services Taxation Accord that was originally negotiated by a group of merchants. The tax collected is then divided per capita between the prefecture government and each municipal government.
* Due to the lax nature of the Meekinosia National Taxation Code, it is quite common for citizens to bribe auditors and regulators in order to turn a blind eye to back taxes which are owed. While a good portion use honest methods to reduce their annual taxes, many resort to bribery and extortion in order to engage in tax evasion. Auditors have been known to accept "processing fees" under the table at taxation time. These fees go toward tweaking the information in the system to clear a citizen's account of outstanding taxes.
