Taxes

From Farm Simulator Network Wiki
Jump to navigation Jump to search

What are they?

Taxes in FSN are currently related to your in-game land holdings, and your total NAV (Net Asset Value). In future versions, there will be taxation on your income as well, depending on what industry you are in. Taxes come every 7 days on Sundays.

How much will I Pay?

Currently taxes are computed based on your land's base value as well as a modifier based on the size (NAV) of your business. Below we have given the basic parameters of how taxation works.


Taxes for your Home Map or Sponsored Map

Basic Tax Bill = (.5% of your total land value on home or sponsored map) * (Tier Modifier)

Tier Modifiers:

  • Tier 1 (Under .5m NAV) - 1.0x Modifier to base land value.
  • Tier 2 (.5m - 1m NAV) - 1.25x Modifier to base land value.
  • Tier 3 (1m - 1.5m NAV) - 1.5x Modifier to base land value.
  • Tier 4 (1.5m - 2.5m NAV) - 1.75x Modifier to base land value.
  • Tier 5 (2.5m - 3.5m NAV) - 2.4x Modifier to base land value.
  • Tier 6 (3.5m - 5.0m NAV) - 2.8x Modifier to base land value.
  • Tier 7 (5.0m - 7.5m NAV) - 3.5x Modifier to base land value.
  • Tier 8 (7.5m - 10.0m NAV) - 4.8x Modifier to base land value.
  • Tier 9 (10.0m - 15.0m NAV) - 7.5x Modifier to base land value.
  • Tier 10 (Greater than 15.0m NAV) - 10.0x Modifier to base land value.

Do you own land on more than just your home map or sponsored map?

If you own land that is not on your home map or sponsored map, you owe a Supplemental Tax in addition to your Basic Tax. Land that is not on your home map or sponsored map is taxed at a rate twice as high.

Total Tax Bill = Basic Tax Bill + Supplemental Tax

Supplemental Tax = (1% of land value) * (Tier Modifier)

Taxes on your Meta Business activities

For your Meta Business activities (such as warehouse holdings, factories, or import/export business transactions), these will be handled as fees rather than a tax on income or value. This is to limit potential exploits and ensure that business activities on maps as well as in Meta are balanced.

Tax Offsets

A portion of charitiable donations (20%-50%) will count as a tax offset. Further specifics on Tax Offsets from charitable donations have not been decided yet and are subject to change.

Examples

Below are a couple simple practical examples to explain the difference between the smallest possible payment on a piece of land, and the largest possible payment on that same piece of land.


Example 1, Smallest Amount

Farmer 1 has 50 acres of land. It is their home server, and their NAV is under 500k. The base value of the land is 250k. The formula would be as follows:

Basic Tax Bill = (.5% of your total land value on home or sponsored map) * (Tier Modifier)

Basic Tax Bill: (0.005 x $250,000) * 1.0 = $1,250.00

Total Tax Farmer 1: $1,250.00


Example 2, Largest Amount

Farmer 2 has 50 acres of land on their home map, and 30 acres on another map as well. Their NAV is over 15m. The base value of the land on their home map is 250k, and the base value of the land on their non-home map is 200k. The formula would be as follows:

Total Tax Bill = Basic Tax Bill + Supplemental Tax

Basic Tax Bill = (.5% of your total land value on home or sponsored map) * (Tier Modifier)

Basic Tax Bill: (0.005 x $250,000) * 10.0 = $12,500.00

Supplemental Tax = (1% of land value) * (Tier Modifier)

Supplemental Tax = (0.01 x $200,000) * 10.0 = $20,000.00

Total Tax Bill = $12,500.00 + $20,000.00 = $32,500.00

Disparity Between Tiers

As you can see there is a large difference between what a minimum amount tier a home player would pay, versus what a large farm would pay. The concept here is simple. As you get larger and larger, FSN encourages you to make smarter business choices, such as consolidating more land on your home map instead of going on to 10 different maps. It's not that you can't go there, it's just that after a certain point, it may not be the most prudent thing to do.

This system works to encourage our players to ensure that if they are growing on a very large scale economically that they are also doing so with sound business practice to maintain that growth. Furthermore, it assists local farmers with encroachment on a large scale from large outside operations and also gives more opportunities to small farms, so even farms new to the FSN community have a fair play opportunity against much more veteran players.


Tax Ammendments

Taxes are reviewed generally on a bi-yearly basis by the FSN Development Team, and if changes are deemed necessary, they will be made at that time. The development team reserves the right to make any changes deemed necessary to the Tax code, especially while we are in such early phases. If you have questions, concerns, or suggestions regarding this system, please do not hesitate to send in a support ticket.

Common Questions

What is my total NAV, and how is it calculated?

Your total NAV is the total sum of ALL your values in your FSN company. You can find your total NAV at any time under Finances - Accounting.

Your total NAV is the sum of all of the following values:

- WEB Cash
- IG Cash
- Savings
- Vehicle NAV
- Land NAV
- Animal NAV
- META Cash
- Bonds
- Stocks


Note that your total NAV is updated every time any of the above changes, which means it will always be fluctuating. It is your total NAV at the time the taxes are finally calculated and shows up under Liabilities that is used in that year's tax calculation.

What other taxes are there?

Other taxes coming in the near future include Income, Sales, Health/Retirement taxation, which will equate to somewhere in the neighborhood of 15-25% in total amongst all categories combined. However these taxes are still in development, so stay tuned to site update notes about them!


What if I don't pay my taxes?

Your credit score will begin to be dinged, and over enough time, the government of FSN may repossess your assets or freeze your accounts in order to make you rectify your tax deficit.

This doesn't seem fair / Why do we need to pay taxes in a video game?

Nothing about FSN was designed with "easy" in mind. It is designed to be an environment that is fun, realistic, and challenging. This simulated tax system is one of our gameplay mechanisms designed to assist with the overall spirit of FSN gameplay balance and growth of players. Even at the highest tax scale, you could make profit on the land, just not nearly as much as you could as a smaller farm, or by doing something smarter like consolidating on a home map.

I don't think my taxes are right

If you feel your taxes are incorrect, send a screenshot of your tax bill, and a screenshot of your accounting overview. If you already paid your tax liability, add the payment ID found in your ledger. We will process your report as soon as we are able, but in general, the entirety of the taxation system is automated and isn't prone to many errors.