Tax Content Subscription Options

You can select which of the following tax content subscription options to use to optimize your tax setup:

Subscribe to the content provided by a tax partner or use the content created directly in Oracle Fusion Tax.
The type of tax configuration options to use.
When to manage and apply tax configuration using business units versus legal entities.
When to use create from an existing tax option.

Using a Tax Partner Content Subscription Versus Oracle Fusion Tax Content

Use the tax content of an external tax partner for the following instances:

When you need the tax content for a significant number of tax jurisdictions.
When you want a tax partner to automatically update the content for statutory changes on a recurring basis.
When you need to automate the upload of content to minimize user intervention.

You can use the content provided by a tax partner in the following scenarios:

Content Scenario 1: Partner Tax Content + Oracle Fusion Tax Calculation

Content Scenario 2: Partner Tax Content + Partner Tax Calculation

Note: Not all tax partners support both scenarios. Even if an individual tax partner supports a specific scenario, the level of depth and geographic scope of partner tax content provided varies between individual tax partners. You must follow up with an individual tax partner to understand the level of coverage and capabilities of all transaction tax offerings provided, including the tax content.

Using Tax Configuration Options

Create and maintain your tax content in Oracle Fusion Tax in the following cases:

If you decide not to use an external tax partner to provide the content.
If you can create the required content for the geographic operations of your business.

In both cases, when you subscribe or assign a business unit or legal entity to a tax regime, you must select the level of tax configuration options that apply in this context. Sharing the tax content prevents the need for duplicate maintenance with its inefficiencies and potential inconsistencies.

The following table lists scenarios and options:

Scenario	Option
You have a single central corporate tax center responsible for maintenance of tax setup for all legal entities and business units.	Use the common configuration with party override option. This allows a single tax setup to be created and maintained by the corporate tax center.
You need strict control over who can maintain the tax content.	Use the common configuration option. By not allowing party override, you restrict the access to the global configuration owner to an authorized user who can maintain all of the tax content.
You have regional centers responsible for tax content.	Use the parent first party configuration with party override option. This permits a regional setup with an actual or logical parent legal entity to be created and maintained by each regional center.

Even if there is no obvious need to share tax configuration, for example, there is only a single first party legal entity operating in each tax regime, significant business events such as takeovers or mergers may mean that there could be a future need to share content. In this case, the original first party legal entity can act as the configuration owner and then any subsequent first party can subscribe to the first party's content using the parent first party configuration with party override. Alternatively, set up the original tax content using global configuration owner to prepare for any future business event that requires tax content to be shared.

Changing from Business Unit to Using Tax Configuration at the First Party Legal Entity

If you standardize your tax setup across all business units for a given legal entity, consider configuring and using tax setup at the legal entity level. Set the Use subscription of the legal entity option on the business unit party tax profile. Oracle Fusion Tax records the date this occurs and compares it to the transaction date to identify if the legal entity subscription should be used in preference to the subscription to the business unit subscription.

Note: If the Use subscription of the legal entity option is used on the business unit party tax profile, it is an irrevocable election. Ensure that this type of configuration approach meets your business needs on a permanent basis. If you are not sure, you can subscribe or assign the business unit to a tax regime and select not to set the Use subscription of the legal entity option on the business unit party tax profile. The business unit subscription approach is more common, but you must evaluate your requirements.

Using Create from an Existing Tax Option

Create a tax from an existing tax when you need to share tax jurisdictions and tax registrations. Maintain the tax jurisdictions and tax registrations once for taxes with the same name within the same tax regime owned by different configuration owners.