2.3.4 Build a Transaction Tax Scheme

When building a transaction tax class, you associate it with a tax ‘rule’. A rule identifies the logic required to compute the tax. The logic built into a tax rule defaults to the tax class with which you associate the rule. For a tax rule you can define the following:

• The tax currency
• The minimum tax amount
• The maximum tax amount
• The floor amount
• The floor charge
• The ceiling amount
• If you would like to apply a rate or a flat amount
• The basis amount, etc

You can group any number of transaction tax classes into a tax scheme. When defining a security deal product, you can associate it with a transaction tax scheme that you have built. Transaction taxes for all deals associated with the deal product will be calculated, by default, according to the components built into the scheme.