- Establish the overarching system or method of taxation relevant to a particular country or jurisdiction.
- Under each tax regime, define the specific types of taxes (e.g., VAT, GST, Sales Tax) that will be applied.
- Determine the various statuses a tax can hold, indicating its applicability or inapplicability under certain conditions.
- Identify the specific geographic or administrative areas where a tax rate or rule applies.
- Set the percentage or fixed amount to be applied for each tax within its respective jurisdiction.Tax Recovery Rules:
- Specify the conditions under which taxes can be recovered or reclaimed.
- Define scenarios or entities that are exempted from certain taxes.
Tax Reporting Codes:
- Set up codes to aid in the reporting and categorization of taxes for financial and regulatory purposes.