| # Maximum tax amount If a maximum tax amount applies for a specific tax code, you can specify the amount in the Single Tax Rates (tcmcs0132m000) and the Multiple Tax Rates (tcmcs0133m000) sessions. If the calculated tax amount exceeds the maximum tax amount, Infor ERP LN replaces the calculated tax amount with the maximum tax amount. For an example, refer to Maximum tax amount Example You can specify the maximum tax amount for a specific tax code , if applicable, in the Single Tax Rates (tcmcs0132m000) and the Multiple Tax Rates (tcmcs0133m000) sessions. Example is based on the following tax code details: Tax Rate: 10 percent Maximum Tax Amount: 10,000 Tax Base Amount: 50,000 Rate for Excess Amount: 5 percent The following table shows the calculated tax amounts for various order amounts:
Order amount | 10,000 | 100,000 | 1000,000
Amount included in tax base amount | 10,000 | 50,000 | 50,000
Tax on base amount (10 percent) | 1,000 | 5,000 | 5,000
Excess amount | 0 | 50,000 | 950,000
Tax on excess amount (5 percent) | 0 | 2,500 | 47,500
Total tax amount | 1,000 | 7,500 | 52,500
Maximum tax amount | 10,000 | 10,000 | 10,000
Resulting tax amount | 1,000 | 7,500 | 10,000
Related topics Tax calculation |