Multi GAAP Tax Rates for Accurate, Compliant Tax Calculations

Tax calculation in Tax Reporting is now enhanced to apply different tax rates by income type and by GAAP (for example, US GAAP vs. IFRS) within the same accounting period. Instead of using a single “regular income” tax rate for all income, the solution now supports scenarios where regular income, short term capital gains (STCG), and long term capital gains (LTCG) require distinct statutory rates—and where late jurisdictional tax rate changes require concurrent rates in-period across accounting bases.

This new capability:

  • Supports multiple concurrent tax rates in the same period across Multi-GAAP (for example, US GAAP, IFRS)
  • Addresses both different income heads taxed at different rates and late tax rate changes requiring different rates across GAAPs within a reporting period

New Forms 
The following new forms are available (Library: Tax Administration):

  • Tax Rates by Multi-GAAP
  • Deferred Tax Override Rates by Multi-GAAP

Note: 

  • Multi-GAAP tax rates are applicable only for Tax Provision National and supports National only entities.

  • Consolidated ETR rate is not supported by Multi-GAAP.

Business Benefit: This enhancement improves tax accuracy and compliance and reduces reliance on workaround entity hierarchies by using the Multi-GAAP dimension for tax rates (more transparency and less maintenance).

Steps to enable and configure

  • New applications: Select the feature during Feature Selection (Create Application: Features, click Enable) 
  • Existing applications: Go to Application: Configuration. On the Configure screen, click Enable Features.
  • Prerequisite: Application must be Hybrid Dense Sparse Optimization enabled. See also: Converting the Application Model to Hybrid-Optimized (DSO)

Key resources