Taxation of Occupied Regions - Explained

Day 2,220, 20:55 Published in USA Poland by Wild Owl

This article intends to explain the recently implemented feature of the taxation of occupied regions, its effects and its consequences on eRepublik.

On day 2187, eRepublik introduced the taxation of occupied regions. In addition to the familiar production bonuses, countries would now gain additional tax income from the regions they have conquered. Initially, this was declared by many as a way for TWO to increase and keep up their supremacy on the New World - taxation of occupied regions basically meant occupation of countries that had so far managed to stay free because their bonuses were not needed by the superpowers around them, as well as extra money for occupiers to finance their military adventures.


The taxes included in the calculations are:
- Import tax
- VAT (Value Added Tax)
- Work tax


The formula

PCI = Partial Country Income
TCI = Total Country Income
TC = Tax Collected
BI = Base Income (20% for the country collecting the tax)
OR = The number of original regions of the country
CR = The number of original regions currently under control


PCI = TC * ( CR/OR*80% + BI )

Even if a country is completely occupied, it will still get 20% of its income (known as the base income). This is a stark contrast to the past when occupied countries got the entirety of their tax income, which after attaining Congress could be used in fighting off occupiers.

While the occupational tax may seem harsh, it was quickly balanced out by Determination and the Freedom Fighter Medals introduced by eRepublik. This tax, along with the determination factor, was a major reason in the re-signing of the Non Aggression Pact between USA and SPoland that guaranteed our freedom. It is interesting to note that while occupation of foreign economically unnecessary regions may bring a small boost to a country’s coffers, it can often turn into a damage drain and is essentially not worth it with the damage spent to hold regions, particularly if one takes determination into account.

The effect of this tax, on an individual level, for a player is almost negligible. However, this can mean more money for occupiers that nations may use as COs for their players or to fund their military. Occupied nations on the other hand, now find themselves with less money than before to use. It could be argued that this feature promotes a more static and fixed version of eRepublik with largely fixed boundaries for many countries, and near-perma occupation for many of the weaker nations.



I hope you find this article useful and informative. I intend to write a few more like this one and if you have any suggestions feel free to let me know via the comments and it shall be covered.

Sincerely,
Wild Owl