The Kingdom of Mount Vema announced today that it is now policy not to charge income tax to people who will live and work in Mount Vema except for ISN contributions and VAT. The policy also applies to businesses when they operate within the jurisdiction of His Mount Vema Majesty’s realm.
The decision was made yesterday, followed by the official statement from the Royal Mount Vema Department of Finance, to clarify on any misconception, that the Kingdom of Mount Vema will be an offshore tax haven. His Mount Vema Majesty’s government runs the territory in accordance with internationally recognised principles of good governance. The statement said.
The Kingdom will not be a tax-free territory, because all residents will pay tax in the form of VAT on all goods and services plus ISN contributions. Furthermore, corporations will face a tax on profits – unless they can demonstrate that three-quarters of company turnover is generated within the confines of His Mount Vema Majesty’s realm.
In addition, the statement reads that, unlike those jurisdictions labelled offshore tax havens, Mount Vema will not offer "offshore financial services", nor will the territory permit or facilitate the registration of offshore corporations looking to operate in such a way as to avoid paying tax in other jurisdictions.
The Kingdom of Mount Vema, according to the statement, manages to balance its books without any plans for heavy tax burdens on people who will be living and working in the island. The absence of income tax will not entail an absence of social conscience, and so the state revenue, will be able to fund an excellent health service, an efficient education system, a good public transport network and comprehensive social services.