| # Tax Codes by Country (tcmcs0136s000) use.session.to maintain the tax-code details of a specific country. If the tax code in the current country represents a multiple tax, you must clear the Singular Tax check box. You can define the ledger accounts for the various types of tax amounts in the following sessions in the General Ledger module in Financials: Posting Data for Multiple Tax Codes (tfgld0570m000) Posting Data for Single Tax Codes (tfgld0571m000) Before Infor ERP LN can link a tax code to transactions, you must select the Approved check box. If you have set up and tested a tax code, you can approve the tax code. Infor ERP LN performs a consistency check on the tax code details. After you approve the tax code, you can no longer change the following fields: Kind of Tax Tax Type Singular Tax Expensed Purchase Tax Group Tax Tax Category Include In VAT Book Related topics To set up tax codes by country To set up withholding tax To set up an aggregate tax code To set up and process service tax on transportation Country The tax country. Tax Code The tax code. State/Province The code for the state or province where the tax code is applicable. State/Province The description or name of the code. Approved If this check box is selected, the tax code has been approved and evaluated and can be linked to transactions. If you have tested the tax code, you can select this check box. Note If this check box is selected, you can no longer change some of the tax code details. Description A description of the tax code. The description helps you to recognize the tax code on orders and invoices. Tax Code for No Tax If this check box is selected, the tax code is the tax code used for non-taxable transactions. Note For taxable transactions with a zero tax rate, you must set up regular tax codes with zero rates. Related topics To use tax codes Aggregate Tax If this check box is selected, the tax code is an aggregate tax code. Group Tax If this check box is selected, the tax code is a group tax code. Related topics To set up withholding tax Kind of Tax The kind of tax for which the tax code is defined. For details, refer to Kinds of tax. You can only select Stamp Tax if you selected the Trade Note to be implemented check box in the CMG Parameters (tfcmg0100s000) session. If you select Stamp Tax, Infor ERP LN sets a number of fields of this session to a default value that you cannot change. Note The Indirect Tax field is populated based on the value specified in this field. Related topics To set up withholding tax Indirect Tax The type of indirect tax. This field can have the following values Service Tax Local Sales Tax Central Sales Tax Basic Excise Duty Additional Excise Duty Special Excise Duty CESS Natural Calamity Contingency Duty Basic Custom Duty Countervailing Duty Additional Duty of Customs Others AED for Textile and Textile Articles Educational CESS on CVD Educational CESS on Customs Educational CESS on Service Educational CESS on Excise Not Applicable Entry Tax Secondary and Higher ECess on CVD Secondary and Higher ECess on Excise Secondary and Higher ECess on Service Secondary and Higher ECess on Custom Service Tax On Transportation E Cess on Transportation Service SHE Cess on Transportation Service VAT Note The field is enabled only when the Kind of Tax field is set to VAT or Social Contribution (Company Expense). When the Kind of Tax field is set to Social Contribution (Company Expense), the field can have only the following values: Service Tax On Transportation E Cess on Transportation Service SHE Cess on Transportation Service Not Applicable Tax Type Indicates when the tax obligation arises. For details, refer to VAT Type. Note The field is disabled and the value is set to On Payments when the Indirect Tax field is set to Service Tax or Educational CESS on Service or Secondary and Higher ECess on Service. Singular Tax Select this check box if the tax code refers to a single tax percentage. As a result, one tax amount is calculated on the basis of one percentage and posted to one tax ledger account in the Financials package. You can define the ledger accounts and dimensions for singular tax codes in the Posting Data for Tax Codes (tfgld0171s000) session. Clear this check box if the tax code refers to a multiple tax-percentage. You can define several lines that together constitute the total tax amount. Infor ERP LN can post each tax line posted to a separate tax ledger-account in the Financials package. You can define the ledger accounts and dimensions for multiple tax codes in the Multiple Tax Code Lines (tcmcs0135s000) details session. Amounts Entered in Financials The way in which you enter amounts with this tax code into the Financials package. Related topics Amounts Entered in Financials Tax Authority The tax authority to whom the tax represented by this tax code and in this country, must be reported. Rounding Method Indicates how tax amounts are rounded. In some countries the tax amounts must always be rounded up. For details, refer to Rounding Method. Expensed Purchase Tax To apply expense purchase tax to transactions that use this tax code, select this check box. If this check box is selected, the tax amounts on the purchase invoice are considered as costs. To post the tax amounts for purchase transactions with this tax code to the Purchase Tax specified in the Posting Data for Tax Codes (tfgld0171s000) session, clear this check box. Related topics Expensed tax Tax Calculation Date Infor ERP LN applies the tax rates that are valid on this date to calculate the tax amounts. To calculate the tax on sales orders and purchase orders in Order Management, Infor ERP LN always uses the tax rates of the order date. If you create the invoices in Central Invoicing, Infor ERP LN can use the tax rates of the Order Date or the Invoice Date. Original Tax Rate for Return Order If this check box is selected, and you generate a return order for rejected goods in Order Management, Infor ERP LN copies the tax details for a sales return order from the original sales order or sales schedule. Related topics Consumption tax Customer approval Text If this check box is selected, a text is present. Infor ERP LN prints the text on invoices and purchase order acknowledgements with this tax code. For example, for special tax rates and tax exemptions, you can use this text for references to the applicable tax law chapter. Tax Article The section of the law related to the tax code. For some kinds of tax included in the VAT book, you must print the section of the law related to the taxation on the tax report or the tax declaration. You can define the tax article as reason codes in the Reasons (tcmcs0105m000) session. If you select the Include In VAT Book check box, you can enter a value in this field. Include In VAT Book If this check box is selected, Infor ERP LN includes transactions with this tax code in VAT book reports. Tax Category The tax category. If the Kind of Tax is withholding income tax or social contributions, you can select a tax category. Note In one country, all the tax codes of a tax category must have the same, or none, tax base value formula. Tax Base Value Formula The tax base value formula. If this field is empty, Infor ERP LN bases the tax calculations on the net purchase order amount or the net purchase invoice amount. If the Kind of Tax is withholding income tax or social contributions, you can select a formula. Note In one country, tax codes of the same kind of tax and the same tax category, or an empty Tax Category field, must have the same tax base value formula. Related topics To define tax base value formulas Pay Tax The moment at which you must pay the withholding tax and social contributions to the tax authorities. If the tax is payable at invoice payment, you must enter the collection office to which you pay the withholding tax and social contributions and the tax settlement tax code. Infor ERP LN does not include tax codes for which you select At Invoice Payment when you generate a tax declaration. When you pay a purchase invoice with such a tax code, Infor ERP LN automatically pays the tax to the collection office. Collection Office The collection office to which you pay the withholding tax and social contributions. |