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.