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:

1. In the Tax Handling (tctax0138m000) session, specify the default tax codes for domestic tax, for various kinds of import and export transactions and freight orders for the financial company's home country. You must also select the default tax codes for transactions that are non-taxable. If a tax code applies to a specific item, you can specify the item.

2. Optionally, you can link default tax codes to items in the following sessions:

   • Item - Sales (tdisa0101s000)
   • Item - Purchase (tdipu0101m000)

   For details, refer to Item tax codes

3. In the Tax Parameters (tctax0100m000) session, specify the order in which Infor LN uses various methods to determine the tax code and the tax country of taxable transactions.
4. Optionally, use the Test Tax Model (tctax8100m000) session to check whether Infor LN returns the correct tax code, tax country, and tax rates in specific situations.

5. In the following situations, define tax code exceptions as described in To define a tax exception:

   • If the derived default tax code is incorrect.
   • If you set up withholding tax. For details, refer to Setting up withholding tax and social contributions