Tax Code overview

Calculations on different taxes require you to create a code for each type of Tax, to register all the features of the tax, and to associate a Calculation Basis Formula. Tax Engine is capable to calculate different types of taxes.

This table shows the types of taxes supported by Tax Engine:

• ICMS

• ICMS Substitution

• IPI

• IPI Substitution

• PIS

• Cofins

• ISS

• INSS

• Accounting Entity Income Tax

• Individual Income Tax

• PIS Retained

• Cofins Retained

• CSLL Retained

• ISS Retained

• INSS Retained

• Import

• INSS Retained Individual

• PIS Substitution

• Cofins Substitution

• PIS Credit

• Cofins Credit

• Basic Excise Duty

• Education Cess

• Sec. & higher Education Cess

• VAT

• Central Sales Tax

• Service Tax

• Local Body Tax

• Basic Customs Duty

• Countervailing Duty

Application of tax may be different based on operation and transaction types. For example, a certain tax type may only be applicable on the following transactions:

• Operations related to movement of goods

• Transportation of products or services between states or municipalities

• Provision of communication services (Mobile phones / Internet services)

These types of transactions involve different formula and percentage calculations. Depending on how the organization operates, it is recommended to create various tax code records for a single tax type and associate all relevant features and formula calculations, based on fiscal transaction or how tax will be applied.