Tax Codes by Country (tcmcs0536m000)

Field Information

Country

tax country

Tax Code

tax code

Approved

If this check box is selected, LN uses the tax codes to calculate and report tax amounts for transactions that have the group tax code.

To approve a group tax code, select the tax code and on the appropriate menu, click Approve.

Caution: 

Once you have approved the group tax code, you cannot unapprove or modify the related data.

Note: 

If you have shared the Tax Code by Country (tcmcs036) table across your financial companies, but did not share the Posting Data for Single Tax Codes (tfgld071) table, to approve this tax code you must specify ledger accounts per tax code in all financial companies.

Example: Tcmcs036 is shared between financial companies 100 and 200, but tfgld071 is not shared between these companies. Financial company 100 is based in the Netherlands, while financial company 200 is based in the United States. Tcmcs036 will contain tax codes for the Netherlands and for the United States. To approve a Dutch tax code, posting data for this tax code must be specified in financial company 100, but also in financial company 200.

Group Tax

If this check box is selected, the tax code is a group tax code.

Note: This field is disabled if the Tax Code Usage field is set to Sales.

Kind of Tax

The type of tax for which the tax code is defined.

Allowed values

VAT

Regular value added tax (VAT) on sales and purchases.

Note: For tax registration setup, this kind of tax also represents sales tax.

Stamp Tax

A kind of tax on trade notes.

Withholding Income Tax

Withholding tax that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.

Withholding Social Contribution

Withholding social contributions on purchase invoices that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.

Social Contribution (Company Expense)

Social contributions (expense) that you can post as costs.

Exclude from Withholding

You can link tax codes of this kind of tax to purchase transactions that are not subject to withholding tax, but that you must report to the collection office for withholding tax and social contributions.

Tax Settlement

On the tax analysis reports, tax payments to the collection office are represented by this kind of tax code.

Not Applicable

None of the previous types apply. For example, for a group tax code the kind of tax is Not Applicable.

Note: 

• If the Tax Code Usage field is set to Purchase, the value in this field cannot be set to Stamp Tax.
• If the Tax Code Usage field is set to Sales, the value in this field cannot be set to set to:
  • Withholding Social Contribution
  • Withholding Income Tax
  • Social Contribution (Company Expense)

Tax Type

Indicates when the tax obligation arises. For details, refer to VAT Type.

Singular Tax

If this check box is selected, the tax code refers to a single tax percentage. One tax amount is calculated on the basis of one percentage and posted to one Tax ledger account in the Financials package.

You define the ledger accounts and dimensions for singular tax codes in the Posting Data for Single Tax Codes (tfgld0571m000) session in Financials .

If this check box is cleared, the tax code refers to a multiple tax percentage. Several lines can be defined which together constitute the total tax amount. Each tax line can be posted to a separate tax ledger account in the Financials package.

You define the ledger accounts and dimensions for multiple tax codes in the Posting Data for Multiple Tax Codes (tfgld0570m000) session in Financials .

Tax Base Value Formula Code

The code of the formula used to calculate the tax base value.

For example, SCL.

Rounding Method

Select the rounding method that is applied to the decimals that exceed the number of decimals specified for the numeric format.

Allowed values

Down

Decimal values are rounded down to the preceding integer value.

Normal

Decimal values ending on five and lower are rounded down, other values are rounded up.

Up

Decimal values are rounded up to the next higher integer value.

Use Rounding Factor of Tax Code

Indicates whether the rounding factor is used to calculate the withholding tax amounts. The rounding of the withholding tax amount is based on the Rounding Method of the tax code.

Note: 

• By default, this check box is cleared.
• This field is enabled only if:
  • The Kind of Tax field is set to:
    • Withholding Income Tax
    • Withholding Social Contribution
    • Social Contribution (Company Expense)
  • The Country is India.
  • The value of the Tax Type field is other than On Payments.
• You can modify this value only if the Approved check box is cleared for the Tax Code.

Rounding Factor

The rounding factor based on which the withholding tax amount is updated.

Note: 

• By default, this field is set to 0.00.
• This field is enabled and mandatory only if the Use Rounding Factor of Tax Code check box is selected.
• This value must be less than 1.0.
• You can modify this value only if the Approved check box is cleared for the Tax Code.
• This value must be equal for all the withholding taxes defined in a Group Tax.

Amounts Entered in Financials

The way in which you enter amounts with this tax code in Financials.

Allowed values

Gross

The gross amount is entered.

The gross includes the tax amount. LN calculates the tax amount and the net amount.

Tax rate	16
Entered gross amount	232
Calculated tax amount	232 * 16/116 = 32
Calculated net amount	232 - 32 = 200

Net

The net amount is entered.

The net amount does not include the tax amount. LN calculates the tax amount and the gross amount.

Tax rate	16
Entered net amount	200
Calculated tax amount	200 * 16/100 = 32
Calculated gross amount	200 + 32 = 232

Note: If the level of tax calculation is Invoice Header, amounts entered are always gross amounts, even if - in the Tax Code by Country (tcmcs0136s000) session - Amounts Entered in Financials is set to Net.

Gross over Hundred

The gross amount is entered.

The gross amount does not include the tax amount. LN calculates the tax amount and the net amount. The tax amount is calculated as a percentage of the gross amount.

In some countries this method is used for travel and accommodation costs.

Tax rate	16
Entered gross amount	232
Calculated tax amount	232 * 16/100 = 37.12
Calculated net amount	232 - 37.12 = 194.88

Aggregate Tax

Indicates that the tax code is an aggregate tax code.

Note: Select the tax code line and on the appropriate menu, click Aggregated Tax to access the Aggregated Tax (tctax0140m000) session.

Tax Scenario

Indicate if separate tax invoices or tax only invoices must be created.

Allowed values

Tax Only Invoice - Claimed

Select this option for transactions involving goods that are free of charge, and for which only the tax amount can be claimed. The customer invoice will then only reflect the tax amount.

Tax Only Invoice - Not Claimed

Select this option for transactions involving goods that are free of charge, and for which the tax amount cannot be claimed. Depending on the Free of Charge setting in the Invoicing Parameters (cisli0100m000) session, there will be no invoice at all, or a zero value invoice.

Tax on Separate Invoice

Select this option to create separate invoices for net and tax amounts.

An order line with the Tax on Separate Invoice option allows you to specify tax invoice data. In the Billable Lines (cisli8110m000) session, on the appropriate menu, select the Tax Invoice Data command to start the Billable Line Satellites (cisli8112m000) session. In this session, you can specify the tax currency and the currency rates to convert the tax base amount in order currency to the tax base amount in tax currency.

When invoicing the billable line, this will result in two invoices - a net invoice and a tax only invoice. The tax invoice will be created based on the data specified in Tax Invoice Data.

Not Applicable

Note: This field is disabled if the Tax Code Usage field is set to Purchase.

Tax Code Usage

The type of transaction for which the tax code is used.

Allowed values

Sales

Not Applicable

Purchase

All

Defer Declaration of All Tax Transactions

If this check box is selected, declaration of all tax transactions with this tax code is deferred.

If this check box is selected, you can manually declare these deferred tax transactions. This is used in case of exports, where evidence of export is required before declaration of the tax transactions.

Note: 

• By default, this check box is cleared.
• This field is available even if the Tax Code is approved.

Defer Declaration of Sales Tax Transactions

If this check box is selected, declaration of sales tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the Tax Code Usage field is set to Sales or All.
• This field is available even if the Tax Code is approved.

Defer Declaration of Purchase Tax Transactions

If this check box is selected, declaration of purchase tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the Tax Code Usage field is set to Purchase or All.
• This field is available even if the Tax Code is approved.

Defer Declaration of Input Shifted Tax Transactions

If this check box is selected, declaration of Input Shifted tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the VAT Type field is set to Shifted.
• This field is available even if the Tax Code is approved.

Defer Declaration of Output Shifted Tax Transactions

If this check box is selected, declaration of Output Shifted tax transactions with this tax code is deferred.

Note: 

• This check box is enabled only if:
  • the Defer Declaration of All Tax Transactions check box is cleared.
  • the VAT Type field is set to Shifted.
• This field is available even if the Tax Code is approved.