BPM Standard Reports Guide

Tax Settlement

This section describes the fields and descriptions on the Tax Settlement report.

In most countries, tax needs to be reported to authorities in basis amounts and tax amounts. Additionally, tax amounts must be tied to vendors and customers to simplify reconciliation against customer and vendor invoices. This is important in order for finance personnel and auditors to verify the tax of a company.

The Tax Settlement report accounts for these two measures:

  • Basis Amounts - The base amount for calculating the tax. The formula for the basis amount that is subject to tax (meaning, to be used further in the calculation of the tax), is:

    Subject to Tax = Original Basis - Tax Exempt - Export

  • Tax Amounts - The tax amounts that are calculated from the basis amount that is subject to tax. The tax amount to be paid/received is calculated as:

    Net Tax = Original Tax - Non-Deductible Tax - Deferred Tax

The purpose of the Tax Settlement report is three-fold:

  • To provide the statistical data about the tax basis amounts leading to the subject to tax amount.
  • To provide the overview of individual tax amounts to be reported (and received/paid) and associate these to the different reporting authorities.
  • To break down tax amounts by customer and vendor and associate to invoice numbers.
Note: The figures in the reports are grouped by the tax settlement types such as Receivable or Payable. If a tax figure is payable, it is a debit in the database and displays as positive number.

The following Tax Settlement report tabs are available:

  • Tax Settlement Summary
  • Tax Settlement Details
  • Tax Settlement Details, by Invoice
  • Withholding Tax

Tax Settlement Summary

Column Header Title Description
Tax Settlement Type This column displays the tax settlement type of the data in the rows.
Tax Level This column displays the tax level of the data in the row. If multiple tax levels are not applicable, the column is collapsed.
Tax Type This column displays the tax type of the data in the row.
Tax Basis This column displays the original tax basis.
Tax Exempt This column displays the basis amounts that are exempted from tax.
Tax Export This column displays the basis amounts that are not taxable because they are regarding exports.
Subject to Tax This column displays the basis amount that is subject to tax. This is calculated as: Subject to Tax = Basis - Exempt - Export
Tax Settlement Details
Column Header Title Description
Tax Settlement Type This column displays the tax settlement type of the data in the rows.
Tax Code This column displays the tax code of the data in the row.
Tax Rate This column displays the tax rate (percentage) of the tax code.
Tax Basis This column displays the original tax basis.
Tax Amount This column displays the tax amount calculated from the basis amount that is subject to tax.
Non-Deductible This column displays the amount of the tax amount which is not deductible. This is stated on the related tax code.
Deferred This column displays the amount of the tax amount which is deferred. This is stated on the related tax code.
Net Tax Amount This column displays the net tax amount which is calculated as: Net Tax = Tax - Non-Deductible - Deferred
Tax Settlement Details, by Invoice
Column Header Title Description
Tax Code This column displays the tax code of the data in the row.
Tax Rate This column displays the tax rate (percentage) of the tax code.
Vendor / Customer No. This column displays the number of the vendor/customer associated the data in the row.
  • For receivable tax, the table displays vendors.
  • For payable tax, the table displays customers.
The header follows this distinction, as do the columns below.
Vendor / Customer Name This column displays the name of the vendor/customer associated with the data in the row.
Vendor / Customer Tax No. This column displays the tax no. of the vendor/customer associated with the data in the row.
Vendor / Customer Country This column displays the country of the vendor/customer associated with the data in the row.
Vendor / Customer EU Member This column displays whether the country of the vendor/customer associated with the data in the row is an EU member.
Vendor / Customer Invoice No. This column displays the vendor/customer invoice number associated the data in the row.
Tax Basis This column displays the basis amount that is subject to tax. This is calculated as: Subject to Tax = Basis - Exempt - Export
Tax Amount This column displays the resulting tax amount.
Non-Deductible This column displays the amount of the tax amount which is not deductible. This is stated on the related tax code.
Deferred This column displays the amount of the tax amount which is deferred. This is stated on the related tax code.
Net Tax Amount This column displays the net tax amount which is calculated as: Net Tax = Tax - Non-Deductible - Deferred
Withholding Tax
Column Header Title Description
Tax Code This column displays the tax code of the data in the row.
Tax Rate This column displays the tax rate (percentage) of the tax code.
Vendor / Customer No. This column displays the number of the vendor/customer associated the data in the row.
  • For receivable withholding tax, the table displays customers.
  • For payable withholding tax, the table displays vendors.
The header follows this distinction, as do the columns below.
Vendor / Customer Name This column displays the name of the vendor/customer associated with the data in the row.
Vendor / Customer Tax No. This column displays the tax no. of the vendor/customer associated with the data in the row.
Vendor / Customer Country This column displays the country of the vendor/customer associated with the data in the row.
Vendor / Customer EU Member This column displays whether the country of the vendor/customer associated with the data in the row is an EU member.
Vendor / Customer Invoice No. This column displays the vendor/customer invoice number associated the data in the row.
Tax Basis This column displays the basis amount that is subject to tax. This is calculated as: Subject to Tax = Basis - Exempt - Export
Tax Amount This column displays the resulting tax amount.
Non-Deductible This column displays the amount of the tax amount, which is not deductible. This is stated on the related tax code.
Deferred This column displays the amount of the tax amount, which is deferred. This is stated on the related tax code.
Net Tax Amount This column displays the net tax amount which is calculated as: Net Tax = Tax - Non-Deductible - Deferred