Overview of Taxation in Próspera ZEDE

Simply put, there are 4 taxes in Próspera:

TaxEffective Rate
Personal Income Tax5% of Gross Income
Business Income Tax1% of Gross Income
Retail Value Added Tax (VAT)2.5%
Land Value Tax1%

The taxes above are the only taxes levied on individuals or businesses operating in Próspera. That means the Próspera Governance Platform does not charge any of the following taxes:

  • Capital gains tax
  • Medicare taxes
  • Wealth tax
  • Excise taxes
  • Import duties
  • Estate taxes
  • Gift taxes
  • Payroll taxes
  • Gasoline taxes (VAT applies)
  • Social security taxes
  • Alcohol taxes (VAT applies)
  • Export duties

This tax structure makes the Próspera Governance Platform one of the most tax-friendly environments in the world for working and doing business.

A Bit More Detail

Let’s breakdown how each of these numbers is derived and what they mean.

Personal Income Tax

Income tax in Próspera is technically 10%, but only 50% of your personal income is deemed taxable, hence an effective 5% personal income tax.

Due on April 30th of every year.

Business Income Tax

Income tax in Próspera is technically 10%, but only 10% of your business income is deemed taxable, hence an effective 1% business income tax.

Due on April 30th of every year.

Retail Value Added Tax (VAT)

The Retail Value Added Tax (VAT) is set at 5% with only 50% of the final retail sales price being deemed value added. This results in an effective 2.5% VAT.

Retail VAT only applies to final retail sales of goods and services.

  • Goods” is defined as all things which are movable at the time of sale.

Due quarterly, must file within 15 days of the end of each quarter.

Land Value Tax

There is a 1% Land Value Tax on the fair market value of real estate, which does not consider improvements.

Due on January 1st of every year, but currently suspended.

Paying Taxes

Taxes can be filed and paid online at https://eprospera.com. Taxes can be paid via credit/debit card, bank transfer, or any qualifying cryptocurrency.

Withholding Taxes

15. Persons chargeable on behalf of a non-resident
(1) A non-resident person shall be chargeable to tax either directly or in the name of his agent in respect of all his presumed income arising in or derived from the PZ from any trade, profession or business carried on in the PZ whether such agent has the receipt of the revenue from which the presumed income was calculated or not, and the tax so charged whether directly or in the name of the agent shall be recoverable by all means provided in this Statute out of the assets of the non-resident person or from the agent.
(2) Where there are more agents than one, they may be charged to tax jointly or severally in respect of the presumed income of the non-resident person and shall be jointly and severally liable for the tax thereon.
(3) Every person chargeable to tax as agent, or from whom tax is recoverable in respect of the presumed income of another person, shall retain out of any assets coming into his possession or control on behalf of such other person or in his capacity as agent so much thereof as shall be sufficient to produce the amount of such tax, and he shall be and is hereby indemnified against any person whomsoever in respect of his retention of such assets.
16. Persons chargeable in respect of certain presumed income of a non-resident
(1) This section applies in respect of a non-resident person who is chargeable to tax in respect of—
(a) sums deemed to be revenue arising in or derived from the PZ from a trade, profession or business carried on in the PZ; or
(b) sums received in respect of, or which in any way derive directly or indirectly from, the performance in the PZ by a non-resident entertainer or sportsman (whether or not he is the non-resident person who is so chargeable) of an activity in his character as entertainer or sportsman on or in connection with a commercial occasion or event, including—
(i) any appearance of the entertainer or sportsman by way of or in connection with the promotion of any such occasion or event; and
(ii) any participation by the entertainer or sportsman in or for sound recording, films, videos, radio, television or other similar transmissions (whether live or recorded).
(2) Where this section applies, the non-resident person is chargeable to tax in respect of the sums described in subsection (1) in the name of any person in the PZ who paid or credited those sums to that or any other non-resident person.
(3) Where a person in the PZ from whom tax is recoverable by virtue of this section pays or credits to a non-resident person (whether or not he is the non-resident person who is chargeable to tax) sums described in subsection (1) he shall, at the time he makes the payment or credit, deduct from those sums so much thereof as is sufficient to produce the amount of such tax, and he is hereby indemnified against any person in respect of his deduction of such sum.

How do I know that taxes won’t go up?

The Próspera Charter expressly delineates a competitive tax policy for Próspera. The Charter expressly states that only the following taxes in the following amounts are allowed in Próspera, and that no taxes beyond these may be created unless the Charter itself is amended.

The Charter also stipulates that by the “latter of January 1, 2030 or the date the population of natural person physical Residents of Próspera exceeds fifty thousand (50,000)”, tax revenues may not exceed 7.5% of the total GDP of the jurisdiction.

Further, once the jurisdiction reaches such date or population level, debt cannot exceed the greater of 20% of the 5-year trailing average of the total GDP of Próspera or 105% of the nominal debt outstanding immediately before the threshold(s) is reached.

This is a key improvement upon the American system, as unlimited debt can potentially lead to untenable fiscal situations which threaten the economic health, stability, and shared prosperity of the jurisdiction.