Maximum tax amount

If a maximum tax amount applies for a specific tax code, you can specify the amount in the Single Tax Rates (tcmcs0132m000) and the Multiple Tax Rates (tcmcs0133m000) sessions.

If the calculated tax amount exceeds the maximum tax amount, LN replaces the calculated tax amount with the maximum tax amount. For an example, refer to Maximum tax amount

Example

You can specify the maximum tax amount for a specific tax code , if applicable, in the Single Tax Rates (tcmcs0132m000) and the Multiple Tax Rates (tcmcs0133m000) sessions.

Example is based on the following tax code details:

Tax Rate: 10 percent
Maximum Tax Amount (Net): 10,000
Tax Base Amount (Net): 50,000
Rate for Excess Amount: 5 percent

The following table shows the calculated tax amounts for various order amounts:

Order amount	10,000	100,000	1000,000
Amount included in tax base amount	10,000	50,000	50,000
Tax on base amount (10 percent)	1,000	5,000	5,000
Excess amount	0	50,000	950,000
Tax on excess amount (5 percent)	0	2,500	47,500
Total tax amount	1,000	7,500	52,500
Maximum tax amount	10,000	10,000	10,000
Resulting tax amount	1,000	7,500	10,000