Understanding Tax Areas for RG 1361

The country-specific tax area setup includes fields to meet the requirements of RG 1361. The Tax Rate Maintenance - ARG program (P764008A) includes fields in which you specify the tax codes types and tax percentages for different fiscal areas. You enter this information so that the tax information can be used in the subledgers according to RG 1361.

The tax code type fields are activated for tax rates 2, 3, and 4 if you specify a percentage for those tax rates on the Tax Rate/Area Revisions form. Tax rate 1 is reserved for VAT tax and tax rate 5 is reserved for VAT perception.

These hard-coded values exist in the ARG-Item ATSx-allowed values (76/A7) UDC table and identify tax code types:

Code	Description
1	VAT (value-added tax)
2	Gross Income Perception
3	City Council Tax Perception
4	Internal Taxes
5	VAT Perception
6	Others
7	Other Perceptions of National Taxes

This example displays a tax area with all five tax rates used:

Tax Rate	Percentage	Tax Code Type
1	21	1 (VAT)
2	4	3 (City Council Tax Perception)
3	2	4 (Internal Taxes)
4	10	2 (Gross Income Perception)
5	5	5 (VAT Perception)