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:
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ICMS
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ICMS Substitution
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IPI
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IPI Substitution
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PIS
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Cofins
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ISS
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INSS
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Accounting Entity Income Tax
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Individual Income Tax
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PIS Retained
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Cofins Retained
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CSLL Retained
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ISS Retained
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INSS Retained
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Import
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INSS Retained Individual
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PIS Substitution
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Cofins Substitution
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PIS Credit
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Cofins Credit
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Basic Excise Duty
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Education Cess
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Sec. & higher Education Cess
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VAT
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Central Sales Tax
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Service Tax
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Local Body Tax
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Basic Customs Duty
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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:
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Operations related to movement of goods
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Transportation of products or services between states or municipalities
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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.