1.4.5 Tax Application Method

1. On Tax Rule Maintenance screen, click the Additional button and specify the fields.

   A tax can be a percentage of the component that is to be taxed (such as the principal, brokerage, etc.), or a flat amount. If you opt to calculate tax as a flat amount, choose the Flat option. If, instead, you opt to calculate tax as a percentage of the transaction amount, choose the Rate option. If tax is to be calculated as a flat amount, specify the flat amount.

   For more information on fields, refer to the field description table.

   Table 1-8 Additional - Field Description

   Field	Description
   Amount Limits for a Tax Rate	If you have specified a percentage of tax for the rule, you should also specify the maximum and minimum amounts, in the local currency, within which the amount calculated using the tax rate should fall. If you have specified a flat amount for the tax rule, then you need not specify the minimum and maximum amount limits.

   Note:

   The minimum and maximum limits apply for specific rules linked to a Tax Scheme, and not for the entire scheme.
2. Click the Exit button to close the screen.