Stamp Tax Calculation
Stamp tax calculation is based on the rules that you specify on the Stamp Tax Rule page in the Stamp Tax component (APD_STAMP_TAX_COM), and the Stamp Tax table associated with those rules on the Stamp Tax page. Here is an example with sample Stamp Tax table values:
| Draft Amount From | Draft Amount To | Stamp Tax Amount |
|---|---|---|
|
1 |
99,999 |
0 |
|
100,000 |
1,000,000 |
200 |
|
1,000,001 |
2,000,000 |
400 |
|
2,000,001 |
3,000,000 |
600 |
|
3,000,001 |
5,000,000 |
1,000 |
|
5,000,001 |
10,000,000 |
2,000 |
|
10,000,001 |
20,000,000 |
4,000 |
Suppose that these are the stamp tax rules for the Stamp Tax table:
| Draft Amount From | Draft Amount To | Draft Split? | Draft Split Amount |
|---|---|---|---|
|
1 |
2,999,999 |
|
|
|
3,000,000 |
4,099,999 |
Yes |
3,000,000 |
|
4,100,000 |
4,999,999 |
|
|
|
5,000,000 |
9,099,999 |
Yes |
5,000,000 |
Here are two stamp tax scenarios:
Scenario A
The scheduled payment is for 8,400,000 JPY with a maximum number of drafts set to 4. When draft optimization runs for the scheduled payment, the following drafts are created:
| Number of Drafts | Draft Amount | Stamp Tax Amount |
|---|---|---|
|
1 |
5,000,000 |
1,000 |
|
2 |
3,000,000 |
600 |
|
3 |
400,000 |
200 |
|
Total |
8,400,000 |
1,800 |
Draft optimization performs the following actions:
-
Reviews the total value of the scheduled payment, and then finds the stamp tax rule that applies to the total amount.
The total amount falls between the 5,000,000 to 9,099,999 range; drafts in this range are split at 5,000,000, giving us one 5,000,000 draft.
-
Checks the Stamp Tax table in the PeopleSoft system and determines that drafts for 5,000,000 are subject to stamp tax minimization in the amount of 1,000.
This leaves a sum of 3,400,000.
-
Evaluates the stamp tax rules and finds that this amount falls within the 3,000,000 to 4,999,999 range.
Drafts in this range are split at 3,000,000, giving us another draft of 3,000,000.
-
Checks the Stamp Tax table and determines that this amount is subject to stamp tax minimization in the amount of 600.
This leaves a sum of 400,000.
-
Checks the Stamp Tax table and determines that this amount is subject to stamp tax minimization in the amount of 200.
Scenario B
The scheduled payment is for 8,400,000 JPY with a maximum number of drafts set to 2. When draft optimization is performed for the scheduled payment, the following drafts are created:
| Number of Draft | Draft Amount | Stamp Tax Amount |
|---|---|---|
|
1 |
5,000,000 |
1,000 |
|
2 |
3,400,000 |
600 |
|
Total |
8,400,000 |
1,600 |
Draft optimization performs the following actions:
-
Reviews the total value of the scheduled payment, then finds the stamp tax rule that applies to the total amount.
The total amount falls between the 5,000,000 to 9,099,999 range.
Drafts in this range are split at 5,000,000, so the system creates one 5,000,000 draft.
-
Checks the Stamp Tax table and determines that drafts for 5,000,000 are subject to stamp tax minimization in the amount of 1,000.
This leaves a sum of 3,400,000.
-
Evaluates the stamp tax rules and finds that this amount falls within the 3,000,000 to 4,999,999 range.
Drafts in this range are split at 3,000,000, so the system creates another draft of 3,000,000.
-
Checks the Stamp Tax table and determines that this amount is subject to stamp tax minimization in the amount of 600.
Because you specified that the maximum number of drafts for this supplier is two, the payment is not split any further.
Your supplier pays the stamp tax to the appropriate taxing authority. You can view stamp tax detail on the Draft Payment Inquiry - Draft Detail page, or on the Draft Create Detail - Stamp Tax Summary report (APY2054), Drafts Create Detail report (APY2053), and Drafts Create Summary report (APY2056).
Note:
Review drafts after they are split on the Draft Staging Approval page. After a draft has been split, the system assigns the split drafts with the same draft master number. You cannot delete a single split payment created as a result of draft optimization. You must delete the entire payment by draft master number. Therefore, in the preceding example with two drafts created after draft optimization, you could not delete only the second draft. You would need to delete the entire draft payment.
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