Taxes setup page
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> Process setup (Data Processing section) > Taxes > 
> Taxes setup
Operational database > Navigation panel > Processes & Workflows > Process > select process > > Process setup (Data Processing section) > Taxes > > Taxes setup
Purpose of the page¶
This page allows you to override the output accounts that the system will use for taxes.
Attributes tab
| Field | Description |
|---|---|
| Fiscal policy | Fiscal policy from among those configured in the system |
| Set | Tax from among those configured in the system |
Deferred and prepaid taxes tab
| Field | Description |
|---|---|
| Deferred Taxes P&L | |
| Annual impact account - debit | - P&L account on which the system registers the annual impact as a debit or credit amount |
| Annual impact account - credit | |
| % variance account - debit | - P&L account on which the impact of the adjustment to the tax fund/credits for prepaid taxes, resulting from the change in the rate compared with the previous year, is registered as a debit or credit amount. |
| % variance account - credit | |
| Debits for deferred taxes | |
| Normal account | - Balance sheet account on which the payable for deferred tax is registered |
| Variation annual impact - debit | Variation account of the Deferred taxes fund account, in debit or credit, on which the tax adjustment due to the impact of the year’s taxes is registered. This typically coincides with a variation account of the Deferred taxes fund. To keep track of both the impact of the year and the impact of the fund adjustment due to the FX rate, ad-hoc variation accounts identifying those variations must be created. |
| Variation annual impact - credit | |
| Variation % variance - debit | Variation account of the Deferred taxes fund account, in debit or credit, on which the tax adjustment due to the change in rate compared with the previous year is registered. |
| Variation % variance - credit | |
| Credits for prepaid taxes | |
| Normal account | Normal balance sheet account on which the amount receivable for tax is registered. This account may coincide with the Deferred taxes fund if no distinction needs to be made between receivables and payables. |
| Variation annual impact - debit | Variation account of the Credits for Prepaid taxes account, in debit or credit, on which the tax adjustment due to the impact of the year’s taxes is registered. This typically coincides with a variation account of the Credits for Prepaid taxes account. To keep track of both the impact of the year and the impact of the fund adjustment due to the FX rate, ad-hoc variation accounts identifying those variations must be created. |
| Variation annual impact - credit | |
| Variation % variance - debit | Variation account, in debit or credit, of the Credits for prepaid taxes account on which the tax adjustment due to the change in rate compared with the previous year is registered. |
| Variation % variance - credit |
Direct Taxes tab
| Field | Description |
|---|---|
| Direct taxes | |
| Taxes | P&L account on which the taxes are booked |
| Accrual - credit variation | Variation balance sheet account on which the accruals for the tax that has already accrued but has not yet been recognised are booked |
| Tax loss | - P&L account from which to read the negative result for the year. This may correspond to the P&L account used to book the net result for the year. |
| Tax loss spreading: No. of years | Specifies the number of years for which the tax loss for a specific tax period can be deducted from the taxable income in subsequent years. If set to zero, there is no spreading. |
| Direct taxes monthly splitting rule | Monthly splitting rule to be applied to the taxes for the year. |
| Accounting | |
| Accrual - debit variation | Variation BS account of monthly accruals write off for the booking of tax at year end |
| Tax fund | Balance sheet account from which to read the tax debit/credit |
| Tax fund: variation account | Variation account of the Tax fund normal account used for booking the year’s taxes at the end of the debit/credit year |
| Tax credits | |
| Tax credit account (P&L) | P&L contra-entry on which to define the tax credit |
| Tax credit account (BS variation) | BS variation account on which to define the tax credit |
Direct taxes - Payments tab
| Field | Description |
|---|---|
| Holidays | Allows you to shift the tax payments that fall on a holiday to a work day based on what is specified in the selected holiday. |
| Bank - credit variation | Banking account for the down payments and tax balances |
| Down payment | |
| Credits due to down payments | Balance sheet account for credit with the tax authorities for tax down payments |
| Statistical account: prev. year tax | Reference tax account of the previous year used for the calculation of down payments of the first year of planning. In subsequent years, the system uses the tax account. |
| Credits due to down payment variation | Variation account of the Credits due to down payments account defined during the down payment of taxes |
| Bank - debit variation | Write off variation of the banking account for down payments if the balance of the tax fund is in credit |
| Tax fund: down payment write off | Credit variation of the tax fund account for the down payment write off if the balance of the tax fund is in credit |
| Down payment % | Percentage down payment to be paid |
| Day | Day on which to pay the tax down payment |
| Period | Period in which to pay the tax down payment |
| Balance payment and down payment write off | |
| Down payment write off method | Write off method for the down payment made during the year. - Fiscal year end: the amount payable to the tax authority is written off with the balance of the credit due to down payments on 31/12. - Balance payment: the amount payable to the tax authority is written off with the balance of the credit due to down payments made upon the settlement of the tax liability. |
| Credit write off variation for down payments | Write off variation of the credits due to down payments account that the system uses at year end or upon payment of the tax balance, in order to make a sort of account transfer and move the balance of the down payment account to the tax fund |
| Tax balance payment fund | Debit variation of the tax fund account entered upon the tax balance payment |
| Day | Day on which to pay the tax balance |
| Period | Period in which to pay the tax balance |