<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000439" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Example of maximum tax amount</Title>
		<Keyword><Level1>Tax</Level1>
			<Level2>maximum amount</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>If a maximum tax amount applies for a specific tax code, you can specify the maximum amount in the <GUIRef href="/baanerp/tc/mcs/tcmcs0132m000" role="session">Single Tax Rates (tcmcs0132m000)</GUIRef> and the <GUIRef href="/baanerp/tc/mcs/tcmcs0133m000" role="session">Multiple Tax Rates (tcmcs0133m000)</GUIRef> sessions.</Paragraph>
		<List><ListIntro>Example based on the following tax code details:</ListIntro>
			<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs0132m000#tcmcs032.pvat" role="formfield">Tax Rate</GUIRef>: 10 percent</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs0132m000#tcmcs032.amxt" role="formfield">Maximum Tax Amount</GUIRef>: 10,000</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs0132m000#tcmcs032.atxb" role="formfield">Tax Base Amount</GUIRef>: 50,000</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/mcs/tcmcs0132m000#tcmcs032.pext" role="formfield">Rate for Excess Amount</GUIRef>: 5 percent</ListItem>
		</List>
		<Paragraph>The following table shows the calculated tax amounts for various order amounts.</Paragraph>
		<TABLE border="1"><THEAD><TR><TD>Order amount</TD>
					<TD align="right">10,000</TD>
					<TD align="right">100,000</TD>
					<TD align="right">1000,000</TD>
				</TR>
			</THEAD>
			<TBODY><TR><TD>Amount included in tax base amount</TD>
					<TD align="right">10,000</TD>
					<TD align="right">50,000</TD>
					<TD align="right">50,000</TD>
				</TR>
				<TR><TD>Tax on base amount (10 percent)</TD>
					<TD align="right">1,000</TD>
					<TD align="right">5,000</TD>
					<TD align="right">5,000</TD>
				</TR>
				<TR><TD>Excess amount</TD>
					<TD align="right">0</TD>
					<TD align="right">50,000</TD>
					<TD align="right">950,000</TD>
				</TR>
				<TR><TD>Tax on excess amount (5 percent)</TD>
					<TD align="right">0</TD>
					<TD align="right">2,500</TD>
					<TD align="right">47,500</TD>
				</TR>
				<TR><TD>Total tax amount</TD>
					<TD align="right">1,000</TD>
					<TD align="right">7,500</TD>
					<TD align="right">52,500</TD>
				</TR>
				<TR><TD>Maximum tax amount</TD>
					<TD align="right">10,000</TD>
					<TD align="right">10,000</TD>
					<TD align="right">10,000</TD>
				</TR>
				<TR><TD>Resulting tax amount</TD>
					<TD align="right">1,000</TD>
					<TD align="right">7,500</TD>
					<TD align="right">10,000</TD>
				</TR>
			</TBODY>
		</TABLE>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000139" role="manual">Tax calculation</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
