Tax Calculation Base Balances

Tax deductions are calculated starting from balances that contain the elements liable to taxation.

Together with balances used for tax deductions also some other balances need to be calculated to be used in the DSN reporting, specifically in rubrique 50.

Balance: Net Taxable Income

It is not used as base for calculation of tax deductions but is represented in the DSN in attribute S21.G00.50.002

Balance: Net Before PAS

It is not used as base for calculation of tax deductions but is represented in the DSN in attribute S21.G00.50.004

Balance: Amount Liable to PAS

It is used as base for calculation of PAS deduction and is represented in the DSN in attribute S21.G00.50.013

Note: Rules are delivered by which elements that are created with specific element classifications automatically feed the above balances (for example any element created with classification Regular earnings will feed the three above balances).

To see the classification feeds associated to a specific balance navigate to:

Fastpath: My Client Groups > Balance Definitions

Select the balance you want to check.
Navigate to Balance Feeds > Balance Feeds by Classification.

Note: Additional balance feeds either by classification or by element can be added at implementation level if needed.

Balance: Amount Liable to RAS

It is used as base for calculation of RAS deduction and is represented in the DSN in attribute S21.G00.81.004. It is calculated as balance 90% of the balance Amount liable to PAS.

Apprentices, Trainees, and Short-term Contracts

Apprentices, Trainees and Short-Term Contract Employees’s Amount Liable to PAS balance values are reduced by an appropriate SMIC value, held in Value Definitions.

Apprentices and Trainees values are reduced by the ‘SMIC - Yearly Blended Rate’ value definition, and for Short Term Contracts are reduced by the PAS - Rebate for Short Term Contract Value definition. Set Up Employee Profiles describes how employees with these characteristics are identified in the system.