| # Example of maximum tax amount If a maximum tax amount applies for a specific tax code, you can specify the maximum amount in the Single Tax Rates (tcmcs0132m000) and the Multiple Tax Rates (tcmcs0133m000) sessions. Example based on the following tax code details: Tax Rate: 10 percent Maximum Tax Amount (Net): 10,000 Tax Base Amount (Net): 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 |