| To set up the tax rates |  |
| After you define and approve the tax codes, you can set up the tax rates. Take the following steps: In the Tax Handling (tctax0138m000) session, specify the default tax codes for domestic tax and for various kinds of import and export transactions and freight orders for the home county of the financial company. You must also select the default tax code for transactions that are exempt from tax. If a tax code applies to a specific item, you can specify the item. If you prefer, you can optionally link default tax codes to items in the following sessions: Item - Sales (tdisa0101s000) Items - Purchase (tdipu0101m000) For details, refer to Item tax codes In the Tax Parameters (tctax0100m000) session, select the order in which ERP LN uses various methods to determine the tax code and the tax country of taxable transactions. Optionally, use the Test Tax Model (tctax8100m000) session to check whether ERP LN returns the correct tax code, tax country, and tax rates in specific situations. Define tax code exceptions as described in To define tax exceptions, in the following situations: If the derived default tax code is not correct. If you set up withholding tax. For details, refer to To set up withholding tax and social contributions. Continue with To set up a tax declaration. Related topics To set up a tax declaration To define tax exceptions |