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