Working with 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 11-10 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:
|
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:
|
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. |