Tax Effective Rates

General Ledger > Tax > Setup > Tax Effective Rates

Tax Effective Rates

You use this program to maintain historical tax rates for tax codes used in a basic tax system or a tax system based on geographic areas.

The program enables you to store an unlimited number of historical rates of tax previously applied to your tax codes (some countries require you to keep up to 7 years tax rate history).

Each time you change the current tax rate using the Tax Codes Setup program, an entry is added to the table of effective tax rates automatically. This builds up a history of the tax rates previously used.

Within SYSPRO, tax routines common to all programs that calculate tax use the current rate, the effective date and the previous rate defined against the tax codes. However, if the date applied to the tax calculation is prior to the effective date against the tax code, then the system checks if a previous effective rate was defined using the Tax Effective Rates program. If a relevant rate is found, then it is applied.

Tax Effective Rates Maintenance

Field	Description
Tax code	The tax code for which you want to enter an historical tax rate. Multiple historical rates can be defined against each tax code.
Rate effective	The date up to which the historical tax rate applies.
Previous rate	The tax percentage applicable to the tax code from the effective date entered in the previous field.

Example

The following indicates how the current, previous and historical tax rates need to be defined.

Assume that for Tax Code A you currently have:

Current rate	Rate effective from	Previous rate	Defined in
10.00	01/01/2008	8.00	Tax Codes Setup

This means that:

the tax rate for taxable transactions from 1st January 2008 to date will be 10%
the tax rate for taxable transactions before 1st January 2008 will be 8%

You are told that the rate for Tax Code A will change to 9% from 01/01/2009.

On 01/01/2009 you change the rates for Tax Code A as follows:

Current rate	Rate effective from	Previous rate	Defined in
9.00	01/01/2009	10.00	Tax Codes Setup

This means that:

the tax rate for taxable transactions from 1st January 2009 to date will be 9%
the tax rate for taxable transactions before 1st January 2009 will be 10%

However, the previous rate of 10% only applied from 01/01/2008 to 31/12/2008. Before that, the rate was 8%.

You therefore use the Tax Effective Rates program to enter the following:

Tax code	Rate effective up to	Previous rate	Defined in
A	01/01/2008	8.00	Tax Effective Rates

This means that:

for transactions up to (i.e. before) 01/01/2008, you want to use a tax rate of 8%.
for transactions from 01/01/2008 to 31/12/2008, you want to use a tax rate of 10%.
for transactions from (and including) 01/01/2009 onwards, you want to use a tax rate of 9%.

Notes and warnings

Program access

Access to this program can be restricted per operator group (see Security Access).
Additional security can also be implemented in the following areas:
- Functions/Activities can be restricted:
  - per operator (see Security Activities).
  - per operator role (see Role Activities and Fields Maintenance).
  - using Electronic Signatures (see Electronic Signatures).
- Fields can be restricted:
  - per operator (see Security Fields and Access).
  - per operator role (see Role Activities and Fields Maintenance and Role Access Control Maintenance).

Maintenance considerations

Any changes made to tax effective rates are only implemented once you exit SYSPRO.
The Rate effective date must be prior to the Rate effective from date defined for the current tax rate (Browse on Tax Codes).