? Set up tax zones types and tax zones, if you intend to use the User Defined Geography determining factor class.
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Part 2: Setting Up Tax Rules
Chapter 8 - Page 21
Regime Determination Set Setup
Regime Determination Set Setup
Before you can set up determining factor sets for regime determination, you may need to complete one or more of these tasks. Prerequisites
? Set up tax regimes.
? Optionally set up tax zone types and tax zones, if you want regime determination to take place at the tax zone level for a location type.
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Part 2: Setting Up Tax Rules
Chapter 8 - Page 22
Agenda
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Part 2: Setting Up Tax Rules
Chapter 8 - Page 23
Tax Formulas Tax Formulas
Responsibility: E-Business Tax Manager
(N) Tax Managers > Advanced Setup Options > Tax Formulas > (B) Create
Use the Create Tax Formula page to set up tax formulas for use in the tax rules Determine Taxable Basis and Calculate Tax Amounts. Determine Taxable Basis
The Determine Taxable Basis tax rule derives the amount or quantity on the transaction line that E-Business Tax uses to apply the tax rate. The standard taxable basis formulas are: ? Taxable Basis = Line Amount. ? Taxable Basis = Quantity.
If the tax requires the calculation of a taxable basis other than the line amount or line quantity (for example, assessable value or prior tax), then create a taxable basis tax formula and either associate it with a Determine Taxable Basis tax rule for the applicable tax regime and tax or set it as the default taxable basis for a tax. Calculate Tax Amounts
The Calculate Tax Amounts tax rule determines the formula that E-Business Tax uses to calculate the tax amount on the transaction line. The standard tax calculation formula is Tax Amount = (Taxable Basis) * (Tax Rate). If the tax amount is to be altered by adding or
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Part 2: Setting Up Tax Rules
Chapter 8 - Page 24
subtracting the tax amount of another tax , then create a tax calculation tax formula and either associate it with a Calculate Tax Amounts tax rule for the applicable tax regime and tax or set it as the default tax calculation formula for a tax.
Copyright ? Oracle, 2009. All rights reserved.
Part 2: Setting Up Tax Rules
Chapter 8 - Page 25