Constitutions of 1975 and of 1989/Constitution of 1989/Tax Law

by Roy of Sealand

Tax Law

§ 1.⁠The Principality of Sealand imposes taxes under this law.

§ 2.⁠Taxes are non-recurring and are imposed by the Principality of Sealand. Fees for the maintenance of the administration are not taxes.

§ 3.⁠This Tax Law is valid in the Sovereign territory of the Principality of Sealand.

§ 4.⁠In certain special cases by special regulation of the Sovereign it may be ordered that no taxes shall be imposed, for example, if only small amounts of tax would result or, if assessment of taxes and imposition of taxes would be inequitable or an undue hardship under the circumstances of individual case but the decision shall always be that of the Sovereign or his duly authorized representative.

§ 5.⁠The information contained in all tax returns made by taxpayers will not be disclosed to anybody other than the State of Sealand and its representatives.

§ 6.⁠For the assessment, imposition, and review of all taxes the State of Sealand or an office or person designated by it will have jurisdiction.

§ 7.⁠Terms for the presentation of tax returns or payments may be prolonged by the State of Sealand or its representative.

§ 8.⁠Any decision relating to the tax assessed or waived will be communicated to the taxpayer by the State. A tax receipt will be given for all tax payments. All decisions made against the taxpayer may be revoked by the State in favor of the taxpayer.

§ 9.⁠A taxpayer is a person who has to pay taxes under the Tax Law of the State.

§ 10.⁠There may be granted a respite in payment of taxes by the State but if it thinks it necessary to make the taxpayer enter into a conditional bail bond either with or without a surety it shall have the power to do so.

§ 11.⁠Tax become statute barred after two years. The barring begins the 31st of December of each year. A demand for such taxes prevents the bar from operating and this shall be so whether the demand is actually received by the taxpayer or not as the posting of a demand by the State or its authorized representative shall be considered sufficient demand in this connection.

§ 12.⁠Regarding the statutory obligation to keep books and make out balance sheets and profit and loss accounts, the regulations of other laws are valid also for the fiscal law.

§ 13.⁠Tax returns of companies have to be presented in a term of eight months after the end of a calendar year. Natural persons have to present tax returns during the same time virtue of this requirement.

§ 14.⁠Declarations of value in the tax returns have to be made in the National currency (Sealand Dollar).

§ 15.⁠The State of Sealand or an office or person designated by it, shall assist the taxpayer in establishing correct tax returns.

§ 16.⁠The taxpayer has to permit the fiscal authorities to inspect all books and records and to be informed of all relevant matters relating to profits and in situ. Hereunder falls also the audit of books.

§ 17.⁠The fiscal authority of the State is entitled to enforce the adherence to the regulations and in the event of default by the taxpayer the State may make a penal assessment on the taxpayer which he will then pay.

§ 18.⁠The taxpayer is entitled to protest against a tax assessment before the competent court of the Principality of Sealand. This relief sought has to be made within a term of three months after posting of the assessment.

§ 19.⁠The failure to comply with the tax law and the nonpayment of taxes entitles the State of Sealand to seize and sell the assets of the taxpayer, but only to the amount of the debited taxes and the expenses of recovering the same.

§ 20.⁠

Natural persons are liable to an income-tax on all incomes earned in Sealand. Artificial persons like corporate entities and companies also are subject to incometax. Income is profit out of industrial activity, profit out of capital assets, and profit out of leasing activities.

§ 21.⁠Income-tax will normally be at the rate of thirty percent of the income.

§ 22.⁠Profit is the increase of assets during one year subject to addition and subtraction of investments and withdrawals and such allowances as may from time to time be permitted by the State. Expenses which do not operate for the maintenance, obtaining and securing of profit have to be disregarded in assessing profits.

§ 22.1.⁠Depreciation for wearing out of assets of a wasting nature is permitted in a reasonable form.

§ 23.⁠

Natural persons are entitled to a special income-tax exemption. They are not liable to tax on incomes up to an amount of Sealand Dollar 5,000.

Sealand Dollar 5.000 ⁠	Sealand Dollar 5.000
Sealand Dollar 6.000	Sealand Dollar 4.000
Sealand Dollar 7.000	Sealand Dollar 3.000
Sealand Dollar 8.000	Sealand Dollar 2.000
Sealand Dollar 9.000	Sealand Dollar 1.000

With more than Sealand Dollar 9,001 they are liable to full income-tax on any excess over this figure.

§ 24.⁠Capital profits for example from the sale of shares, business interests, firms, etc. are not normally liable to taxes.

§ 25.⁠Assets situated in the Principality of Sealand are liable to property tax and death duty. There are not imposed any property taxes or death duties at the moment. Nevertheless the State is entitled to impose those taxes, subject to announcement two years in advance.

§ 26.⁠The State is entitled to make administrative regulations subject to ratification by the Sovereign.

§ 27.⁠This law comes into force the day this document is signed by the Sovereign.

17th May 1976, ROY OF SEALAND