Setting Up Tax Rates

Tax Reporting requires you to input the appropriate national income tax rates and regional income tax and apportionment rates at the legal entity level.

The Tax Rates form contains the national and regional tax, and apportionment rates needed by the system to compute the national and regional provision for a specific entity.

The following rate types are available for each jurisdiction:

Table 16-1 Tax Rate Types

Tax Rate Type	Description
Prior Year Current Tax Rate	The national statutory tax rate for the prior year. This rate is used for informational purposes.
Current Year Current Tax Rate	The national statutory tax rate for the current period. This rate is used in the following calculations: Current provision Current year activity in the deferred tax rollforward Foreign rate differential in the consolidated Effective Tax Rate report Current year tax rate change component in the deferred tax rollforward
Opening Deferred Tax Rate – Non Current	The beginning-of-year deferred tax rate to be used for temporary differences classified as current. This rate is used in the following calculations: Beginning of year deferred tax asset and liability Beginning of year rate change component in the deferred tax rollforward
Closing Deferred Tax Rate – Non Current	The end-of-year deferred tax rate to be used for temporary differences classified as noncurrent; used in the calculation of the ending deferred tax asset/liability and the beginning-of-year and current-year rate change components in the deferred tax rollforward.
Opening Regional Tax Apportionment	The prior-year apportionment percentage to be used by the system in the calculation of the opening tax balances in the deferred provision.
Current Year Regional Tax Apportionment	The current-year apportionment percentage to be used by the system in the calculation of apportioned income in the current provision and tax based on current-year activity in the deferred provision.
Closing Regional Tax Apportionment	The end-of-year apportionment percentage to be used by the system in the calculation of closing tax balances in the deferred provision.
Active Region Flag	Identifies a Region (such as a US State) for which an income tax provision must be calculated. Tip: In order for data to flow correctly between National and Regional Jurisdictions, you must set the Active Region Flag for each active Jurisdiction in the National Tax Rates to Active.