Percentage Tax

Purpose

The Percentage Tax module in AccuBooks Plus allows businesses in the Philippines to configure, manage, and maintain the various percentage tax rates prescribed by the Bureau of Internal Revenue (BIR). This setup ensures that transactions subject to percentage tax (such as those for VAT-exempt individuals or specific industries like domestic carriers and franchises) are accurately calculated, recorded in the correct tax accounts, and properly mapped for tax compliance and BIR form generation.

Key Fields & System Information

When managing percentage tax codes, the system tracks several essential pieces of information:

• Code: The unique identifier or alphanumeric code assigned to the specific tax rate or section (e.g., PT 010, PT 040).
• Name & Description: The official title and legal context of the tax provision as prescribed by the BIR (e.g., "International Carriers (Sec. 118)").
• Rate: The applicable tax percentage to be levied on the gross receipts or revenue (e.g., 3.00%, 7.00%).
• Tax Account: The specific Chart of Accounts general ledger account where the automated tax entries will be posted (typically mapped to "Percentage Tax").
• Active Status: A toggle indicating whether the tax code is currently available for selection in transactional modules.

Step-by-Step Instructions

How to Create a New Percentage Tax Code

1. Navigate to the Screen: Go to Setup on the left sidebar menu, expand Configurations, select Taxes, and click on Percentage Tax.
2. Initiate Creation: Look for the top-right corner of the percentage tax table workspace and click the blue Add button.
3. Fill out Tax Details: In the creation form that appears, enter the unique Code and descriptive Name based on BIR guidelines.
4. Set the Rate & Mapping: Input the exact tax Rate percentage and select the appropriate Tax Account from your Chart of Accounts dropdown list.
5. Provide a Description: Copy or expand upon the official legal provision in the Description field for internal clarity.
6. Set Status: Ensure the Active? flag is set to "Yes" so that it becomes available for use in your sales, billing, or general journal transactions.
7. Save changes: Click the Save button to commit the new code to the master database.

How to Edit an Existing Percentage Tax Code

1. Locate the Entry: In the Percentage Tax main workspace table, look for the tax code you wish to update. You can use the Search... bar or change the Order By dropdown filters to locate it faster.
2. Access Actions: Move your cursor to the rightmost column named Actions for your chosen line item.
3. Open Edit Window: Click the blue icon button under the Actions column to pull up the existing details for that specific row.
4. Modify Information: Alter the required details such as Name, Description, or toggle the Active? status to "No" if a particular rate has been legally deprecated or is no longer used by your company.
5. Update and Save: Review the modifications to ensure tax accounting accuracy and click Update or Save to lock in the changes.