W3C - Enterprise Tax

We had many discussions about Enterprise Tax in the past and it came up again in recent days.

We have decided to make a change to the tax and have just implemented the new system.

Enterprises, as documented in the Somcountry documents, can have a maximum of 750 corporations.
There are ways to circumvent the max number and there are several such enterprises in the game.

as of now, we have eliminated the enterprise tax for all enterprises that have up to 750 corporations. These are nearly all of them.

The tax remains in place for enterprises that have more than 750 corporations.
There are two tax levels, as before.
The first tax level is for enterprises that have 750 to 1200 corporations and a second tax level for enterprises that have more than 1200 corporations.

We advise players to comply with the game rules and limit enterprises to a maximum of 750 corporations.

Most enterprise in Simcountry will not pay any taxes at all, starting today.

Enterprises can be very profitable, especially when they build many raw materials corporations and even more profitable now, with the elimination of the enterprise tax.

We have also made it possible for players to have multiple enterprises with up to 750 corporations each and all of them will have no enterprise taxes.

Hi Andy,

does it mean that building more than 750 is against game rules?, I don't want to do anything illegal only play the game at the level I can play.

can you also please share how the enterprise tax will be caculated in your mentioned levels. i would appreciate at least this minimum level of tranparency.

thanks

I will provide more info.
I need to go into the code this week.

The limit for the number of corporations is 750. This is unchanged for a long time.

However, players found ways to increase the numbers beyond 750.
This is against the rules but as long as we did not block it, and playing simcountry allows you to get to higher numbers, we are not planning to enforce the closing of many corporations.

The 750 limit was intended to prevent several players from dominating the enterprises space and to prevent extreme income in such enterprises.

so the tax has always made some difference and very large enterprises paid a bit more.

Now, after this change, enterprises with up to 750 corporations will not pay any tax. For everyone who blamed the tax as significantly reducing the income of corporations, they can relax. It will not happen any more.

For larger enterprises, there is a lower tax level between 750 and 1200 corporations and a higher level above 1200.

we had these two tax levels before but the limits were 400 and 1000 corporations.

I am ok to pay taxes, even extreme, still they should be fair, reducing my profit but not causing losses because of them.

I shared image on another conversation which I hope makes sense. I hope you was able to see it. CEO Profit and tax

Maybe this is better explanation of how I think CEO profit is calculated. Tax should be taken from real profit and nothing else.

nvm.

It's bullshit. I just paid £265B enterprise tax for the month.

Andy, how come non of your enterprises have ever made a profit?

Oops, Ethelred.

The tax change was not corrected yet. It will be probably tomorrow.
I am sorry for the premature message.

Your enterprises do not have more than 750 corporations and tax payments will be eliminated when we do implement that change.

The Bilderberg Group on LU has 1789 corporations Andy.

It hardly dominates the economy.

It took real years to build it through the stock market.

It is my one interest left in SC.

So I should close 1,039 corporations?

The tax update will take place on Tuesday morning (tomorrow) or on Wednesday morning.

Here are the exact rules related to it:

1. If the enterprise does not make a profit, there will be no tax at all.
This is unchanged. It was dependent on profit all the time.
2. If the enterprise has less than 750 corporations, there
will be no enterprise tax. This is a change from the previous situation.
It will eliminate the enterprise tax from nearly all enterprises.
3. If the number of corporations is >750 and smaller than 1200, there will
be a tax of 5% of the total profit.
4. If the enterprise has >1200 corporations, there will be a tax of 9% i
of the total profit.

We will look into the numbers resulting from this change and might need to make an update sooner or later but for now, we think that this change will make it all more transparent.

There was also confusion about this tax causing losses and independent of the enterprise profit but this is untrue.

We will make this part of the next upgrade but will watch the results closely to make sure it does what we promise.

Hi Andy,

I follow the logic, but I am concerned that currently you don't know what is the real profit of CEO as the one showed in enterprise finance table is not correct and the correct one was promised but still not implemented.

can you clarify how profit is calculated for this 9% tax. thanks.

Maybe my math is very wrong, but I see total profit before taxes 1888, so after minimum 30% taxes paid to countries profit would be 1321, so then this 9% tax would be around 119B, but I am paying 701B. which is 701/1321=53%

I cannot explain this, please help

Andy,

I have a question I would like clarified. Is the tax based on a SINGLE enterprise or the combination of both on a single world?

The reason I ask, is I see several issues on this "tax".

First - Just like Lord Mndz I also see a 30% tax rate on total profit
Second - I have a CEO being taxed despite being WELL below the 750 rule you stated, to me this states your taxing based on the account or planet wide corporation numbers, which is a HUGE issue and would need to be addressed.
Third - There is no way for player to "track" these costs. All other costs have graphs we can use to track changes, but this has no way for players to be able to track monthly rates to see the real infomation

The upgrade took place a short time ago.

We will look at the results after the first month run was completed.
It is done at about 11 am EST.

The tax is computed for each enterprise separately.

we will add graphs. we have several that should be added.
will do so ASAP.

KB was upgraded earlier and I looked into several enterprises with less than 750 corporations.
there was no enterprise tax.

We are also implementing a third layer in the tax and will update the 3 layers once it is done.

long waited but good to see this finally materializing. thanks

Andy,

As a player who you are targeting with your tax, I have a suggestion. You want me and others to reduce our enterprises to 750 corps. I have no problem doing that in the sake of "fair gameplay", however, you need to fix or remove the closure tax for corporations.

"If you want to close this corporation in Melichor, you have to pay 50% of the Market Value as damage with a minimum of 50 Billion SC$. Given the current Market Value of the corporation, you have to pay 104.39B SC$."

At the ABSOULTE minimum, if I close hundreds of corporations I would get hit with a 12.5trillion tax bill for closing, not to mention that since they have higher market values, I would be forced to pay even more.

Some players you are targeting would see 50-100T in ADDITIONAL costs.

I kindly ask that either you make it easier to buy/sell corporations or if a enterprises hit the 750 limit, closure is free for corps until the limit is hit

Hi SS,

I think Andy means that w3c are ok with us exceeding 750 as we got that by gaming means but we will have to pay more taxes.

this is ok with me, as ceo is more than cash to me at least to the level I can stay afloat.

Mndz is right.

we are not pushing anyone to close many corporations.
It is costly for the enterprise and not good for the market/game in general.
The very large enterprises are making very large profits and the tax is not changing that.

Not building new corporations will be a step forward.

We will introduce a third layer at some point, updating the tax levels and adding a third percentage or a progressive one.

We have no intention of killing these enterprises or destroying your assets in any other way.

Players worked hard and invested in creating empires and associated enterprises. we are happy with it.
Changes are aimed at making it possible, and creating some space, for others to do the same.

Andy,

This is a little off topic, but why do you note housewives as a select group to retrain and return to the working world? Seems a little old-school in thinking. Another questions this raises is why does this select group only go to CEO corps and not into the market in general? Similarly handicapped people in countries can only go to work for CEO corps. That seems discriminatory to think that certain types of citizens can only participate in the economy if there are ceo corps and those two are singled out.

TM