1. Implementing Tax
  2. Foundation Tax Configuration

Foundation Tax Configuration

Use Oracle Fusion Tax to set up and maintain your transaction and withholding tax requirements in all geographic locations where you do business. Foundation tax configuration refers to a set of tax setup components that you use to satisfy your tax requirements.

At transaction time, the tax configuration determines the following taxes and tax amounts:

  • Taxes that apply to each transaction

  • Transaction tax amount

  • Withholding tax amount

Foundation tax configuration components consist of:

  • Tax regimes

  • Taxes

  • Tax jurisdictions

  • Tax statuses

  • Tax rates

Foundation Tax Configuration

Complete the setup tasks to create a basic tax configuration for each of your tax regimes. A foundation tax configuration contains the data applicable to the taxes belonging to a tax regime. The following table describes the levels of specifying setup options for foundation tax components with Canada Goods and Services Tax (GST) and Harmonized Sales Tax (HST) as an example.

Component

Tasks you can perform:

Tasks you cannot perform:

Canada GST and HST Example

Tax Regime

  • Share tax content among legal entities and business units.

  • Enable partner integration.

  • Associate fiscal classifications.

  • Define tax reporting types and codes.

  • Define features to influence setup task list.

  • Define configuration owner tax options.

  • Define application tax options.

  • Define party tax profiles.

CA GST and HST

Tax

  • Enable controls to influence tax behavior.

  • Specify defaults that are commonly applicable.

  • Define applicability tax rules.

  • Define customer exemptions.

  • Specify party registrations.

  • Share tax content.

  • Define integration with partners.

  • CA GST

  • CA HST

Tax Jurisdictions

  • Define location-based tax rates.

  • Define customer exemptions and rate exceptions.

Specify tax rule defaults.

  • CA Alberta GST

  • CA BC HST

Tax Status

  • Define common rules for tax rates.

  • Drive reporting needs.

  • Allow manual override to tax rates.

  • Specify tax rule defaults.

  • Define customer exemptions.

  • Specify party registrations.

  • GST Standard

  • HST Standard

  • HST Reduced

Tax Rates

  • Define tax rates by effective periods.

  • Specify tax account variations.

  • Define tax rate exceptions.

  • Define tax recovery rates.

  • Define customer exemptions.

  • Define applicability tax rules.

  • Define taxable calculation formulas.

  • Share tax content.

  • CA GST Standard

  • CA GST Reduced

  • CA GST Exempt

  • CA HST Standard