7.1 Taxation
No direct taxation is imposed on residents and Liga companies. The government receives the majority of its income from indirect taxation. Duty is levied against most imported goods, which is typically in the range of 22% to 25%. Some items are exempted, such as baby formula, books, cameras and certain items are taxed at 5%. Duty on automobiles depends on their value. The duty can amount to 29.5% up to $20,000.00 CIF (cost, insurance and freight) and up to 42% over $30,000.00 CIF for expensive models.
The government charges flat licensing fees on financial institutions that operate on the island and there are work permit fees on foreign labour. A 13% government tax is placed on all tourist accommodations in addition to US$25.00 airport departure tax which is built into the cost of an airline ticket.
There are no taxes on profits, capital gains, income or any withholding taxes charged to foreign investors. There are no estate or death duties payable at the Liga island real estate or other assets held in at Liga.
The
Liga Revenue Service (LRS).
The Liga Revenue Service has the task to collect all state taxes but also fines and other state fees. The LRS is located in mayor cities and ports. The LRS Headquarters are in the capital and the LRS is headed by the LRS Commisioner who is appointed by the State Council. The local offices are headed by deputy-commisoners. Each office has tax-auditors who check the compliance of the taxpayers (mostly companies who withhold the taxes from their customers). There are also tax-collectors who can force unwilling taxpayers to meet their obligations.
Cities can have their own tax-systems, within the limits of the law.
Official registered Ligirian companies and firms are been registered with the
LC extension. (Ligirian Company, Ligirian Companie)
The GDP is 35,143 million US dollar (source: LRS 2014)
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