Fixed tax rate on an entity

A fixed tax rate can be captured on an entities’ tax details.

Select the “Effective tax rate” drop down from the Tax rate calculation method, then insert the Effective tax rate to be applied and save

This value can be imported and exported with Import/Export Contracts

On a withdrawal that is waiting for tax, the tax calculator will provide the option to calculate the percentage as set on the entity

NOTE: In an instance where the fix tax rate is applied after payments have already been made on the account during the current tax year, the fixed rate tax calculator will apportion income tax to get to the required fixed tax rate as indicated for the tax year.

Refer to the sample calculation for the Tax Calculations After fix tax rate is applied.

Last Updated on 1 year ago by Debra Hart