Government changes policy on corporate tax, income tax and pension rules

Businesses and residents will now be charged 10% corporate tax and 5% individual income tax in Mount Vema according to a new policy introduced by the government this week.  The policy also includes a new rule on pension which is now taxed at 5% with immediate effect.

The decision was made last week by the Government, to clarify on any misconception, that the Kingdom of Mount Vema will be an offshore tax haven. His Mount Vema Majesty’s government wanted to reasure government bond investors and partners that it runs the territory in accordance with internationally recognised principles of good governance.
 
The Kingdom of Mount Vema will have much lower taxes in comparison to other countries, but it will not be a tax-free territory, in addition to income, 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 their turnover is generated outside of the confines of His Mount Vema Majesty’s realm.
 
According to the new pension rule, the Mount Vema State Pension will be based on ISN contribution record. From April 2, 2019 you will need 10 years of ISN contributions to be eligible for the Mount Vema State Pension.

Mount Vema Retirement and Pension

Within the Mount Vema society, a person may retire at whatever age they please. However, based on the old-age pension rules of the Kingdom of Mount Vema 65 is the retirement age. The point where a person stops employment completely.

What You Will Get

The full Mount Vema State Pension is currently 120.15 golles per week. The actual amount you get depends on the record of your ISN contributions. The amount according to the new pension rule can be higher if you have over a certain amount of Additional State Pension or if you defer (delay) taking your State Pension.
 
If you have other income like a personal pension or a workplace pension, you can still get a State Pension, which is paid every 4 weeks into an account of your choice. You’re paid in arrears for the last 4 weeks.

You will not get your new State Pension automatically, as you have to claim it. You should get a letter no later than 2 months before you reach State Pension age, telling you what to do. If you do not get an invitation letter, you can still make a claim, online, over the phone (note: you must register your telephone number online before you call) or in Person (at the nearest consular office of the Kingdom of Mount Vema) if you are based outside Mount Vema.

You’ll get a proportion of the new State Pension if you have between 10 and 35 qualifying years. For example if you have 20 qualifying years on your ISN, you will need to divide 120.15 by 35 and then multiply by 20.

The State Pension will increase each year by earnings – the average percentage growth in wages (within the economy of Mount Vema) or by prices – the percentage growth in prices in Mount Vema as measured or to be measured by the Consumer Prices Index (CPI) 2.00%

If you cannot work, you may get ISN credits - for example because of illness or disability, or if you’re a carer or you’re unemployed. For example, you can get ISN credits if you claim other types of state benefits and allowances. You might also be able to pay voluntary ISN contributions if you want to increase your State Pension amount or if you have never paid into the system. You might also be able to inherit an extra payment on top of your State Pension if you’re widowed, but you will not be able to inherit anything if you remarry or form a civil partnership.

What is the ISN (Internal Security Number)

The Mount Vema ISN (Internal Security Number), is a unique number issued to everyone working within the jurisdiction of the Kingdom of Mount Vema, paid out of the financial system of His Mount Vema Majesty's realm.
 
Temporary numbers T-ISNs, and permanent ISNs are issued to enable people to keep the same one all their lives.  The system makes sure that what people pay, when paid out of the Mount Vema financial system is properly recorded against their name, by HMVM Revenue Services. 
 
Every Internal Security number is different, and was made shorter this year. Now made up of letters and fewer numbers like this:  T-ISN or ISN10-000-000-MV. The Internal Security number will never change even if the person leaves the Mount Vema employment system, goes abroad, marry, register as a civil partner, change name, etc, except when the number is issued temporarily (T-ISN) for people who employment with Mount Vema corporations will not require them to relocate to the Kingdom of Mount Vema in the future. 

Who uses the Internal Security Number?
​
A person will have to give his or her Internal Security Number to: HMVM Revenue Services (His Mount Vema Majesty’s Revenue Services), the employer, the Mount Vema Department in charge of pensions, the legal aid services, the state benefits services for Mount Citizens overseas, and other international services including health insurance, education and professional training. Internal Security contributions are deducted from wages by employers.

When to apply for an Internal Security number - ISN.

If you have been offered employment in Mount Vema, you must apply for a Mount Vema ISN (Internal Security Number), by filling out the relevant form and submit. Just like a Mount Vema bank account which you cannot work until you have one, you cannot work until your ISN number have been issued.