CFP Data processing - Direct taxes calculation

Through this data process, the system calculates the P&L taxes according to what is defined in the fiscal policy. The calculation is carried out for the entities with which a fiscal policy in the list was associated and for which “Participates in the notional calculation” or “Participates in the entity calculation” was activated during the definition of the execution plan.

The system calculates the notional taxes first, and then the entity taxes, by performing the following operations:

• it generates the list of deductible accounts. The accounts sensitive to the tax are:
• the P&L accounts not present in the “Tax rules (account/taxes relationships)” for the comprehensive gross amount;
• the P&L accounts present in the “Tax rules (account/taxes relationships)” for the percentage indicated as the “% subject to current year” or for the maximum amount out of the overall amount of the account and a percentage (“Threshold %”) of the account amount indicated as the “Threshold account”;
• the P&L accounts of previous years present in the “Tax rules (account/taxes relationships)” that are subject to deferred taxes and should therefore be booked during the current year (these are the accounts which have the “% subject to year n+1”, “% subject to year n+2”, “% subject to year n+3”, “% subject to year n+4”, “% subject to year n+5” and “% subject to year n+6” fields defined);
• any tax losses from previous years brought forward as deductions
• creates the tax credit from the previous scenarios:
• calculates the tax credit originating from the scenario prior to the scenario in question, whether it has been created automatically by means of data processing or entered manually by the user
• the tax credit from the previous years is entered in the accounts together with deferred or advanced taxes for the year
• taxes calculation:
• calculation of the statutory result before taxes
• calculates the tax result making fiscal increases or decreases to the statutory results before taxes. In the event of tax profit, it also deducts tax losses of previous years
• tax calculation: it applies the tax rate to the tax result and adds any manual entries to the tax; for forecasts, the actual amount is removed
• deferred or prepaid taxes calculation:
• calculation of tax not subject to: tax obtained from a tax profit calculated by carrying forward the tax variations from the statutory result on the basis of the deductibility percentages applied to following years
• deferred taxes calculation: difference between the tax for the year and the tax not subject to, if positive
• advanced taxes calculation: difference between the tax for the year and the tax not subject to, if negative
• creates the events for the period on the P&L tax account based on a weight or statutory profit. The following events are created:
• event “$GPL” - Accrual, with the following characteristics:
• account equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• currency amount equal to the monthly value of the tax (sign +) calculated via the monthly splitting of the annual tax value, according to the “tax monthly splitting type” specified in the tax rules (tax definition)
• origin equal to “CFP_TAXES_PL” - CFP – Taxes
• event “$GPL” - Accrual, with the following characteristics:
• account equal to the “Tax accrual account: credit variation” specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• currency amount equal to the monthly value of the tax (sign -) calculated via the monthly splitting of the annual tax value, according to the “tax monthly splitting type” specified in the tax rules (tax definition)
• origin equal to “CFP_TAXES_PL” - CFP – Taxes
• creates the tax accounting events. The following events are created:
• event “$GBL” - Accounting, with the following characteristics:
• account equal to the “Tax Fund: Variation account” specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• currency amount equal to the annual value of the tax (sign -)
• origin equal to “CFP_TAXES_ACC” - CFP – Taxes
• event “$GBL” - Accounting, with the following characteristics:
• account equal to the “Tax accrual account: debit variation” specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• currency amount equal to the annual value of the tax reversed in sign (sign +)
• origin equal to “CFP_TAXES_ACC” - CFP – Taxes
• creates the deferred or advanced tax accounting events. The following events are created:
• event “$GBL” - Accounting, with the following characteristics
• account equal to the “Deferred taxes: debit - annual impact” or “P&L taxes credit” account specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• currency amount equal to the value of deferred/advanced tax 1 (the amount includes the tax credit from previous years)
• origin equal to “CFP_TAXES_DEFERRED” - CFP - Deferred taxes
• event “$GBL” - Accounting, with the following characteristics
• account equal to the “Deferred taxes fund: debit - annual impact” or “Credits for Prepaid taxes - annual impact” account specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
• currency amount equal to the value of deferred/advanced tax * -1 (the amount includes the tax credit from previous years)
• origin equal to “CFP_TAXES_DEFERRED” - CFP - Deferred taxes
• if the “Down payment write off method” is “Year End”, it creates the events for the closing of the down payments account. The following events are created:
• event “$GBL” - Accounting, with the following characteristics
• account equal to the “Down payment: end-of-year write off variation account” specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• event date equal to the year end date
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “Down payment: end-of-year write off variation account” specified in the tax rules (tax definition)
• currency amount equal to the value of the down payments account at the end of the year, reversed in sign
• origin equal to CFP_TAXES_DOWN_PAYMENT_DEBT - CFP - Taxes - Debit Down payment
• event “$GBL” - Accounting, with the following characteristics
• account equal to the “Tax Fund: Variation account” specified in the tax rules (tax definition)
• custom dimensions equal to the elements of the default custom dimensions specified for the entity
• event date equal to the year-end date
• currency equal to the entity currency
• reference account for cash flow calculation equal to the “Down payment: end-of-year write off variation account” specified in the tax rules (tax definition)
• currency amount equal to the value of the down payments account at the end of the year
• origin equal to CFP_TAXES_DOWN_PAYMENT_DEBT - CFP - Taxes - Debit Down payment