Profit Tax

Profit Tax functionality makes it possible to account for operations, taxable by monthly profit tax. For most of the companies, profit tax is not calculated by subtracting deductions from total revenue anymore, but there is a special list of categories of operations which are directly taxed with monthly profit tax (no matter they gained profit or suffered loss for specified accounting period). There is no need for integration with RS.GE portal.

User will post profit tax entries through Recurring General Journal and get results in Analysis Views. That will show within reporting period (month) profit tax amount, per categories and subcategories. After this user will be able to transfer it into monthly profit tax declaration on Revenue Service of Georgia.

Required Settings

1. Choose the icon, enter Tax Setup Ge, fill following fields in tab Profit Tax:

• Profit Tax Rate - Profit tax rate according Georgian legislation.
• Profit Tax Payable Account - Liability account.
• Profit Tax Deductible Account - Liability account.
• Profit Tax Account –Expense accoount.

Note
Mentioned accounts above can be different according your needs.

2. Set up Dimensions for Profit Tax, choose icon, enter Dimensions, create new Dimension in line:

From Dimension ribbon, Choose Dimension Values and add Profit Tax Articles in Profit Tax Categories, which are taxable according Georgian legislation. Later they will be used in documents for taxation.

For more information about Dimesnions and Dimension Values visit the link.

Profit Tax in Documents

When creating Sales or Purchase Orders or Invoices, It’s important to choose preferable Profit Tax Category in Sales/Purchase documents lines in the field Pt Code.

Analysis View

To check taxable Profit Tax Categories with amounts at the end of month in Analysis View:

1. Choose the icon, enter Analysis View and create Analysis View Card for Profit Tax with filling fields below:

FastTab General:

Code	Account Source	Date Compression	Update on Posting
PROFIT TAX	G/L Account	Month	Checkbox - On/Off

FastTab Dimensions:

• Dimension 1 Code - PROFITTAX

2. In Ribbon of Analysis Views, choose Analysis by Dimensions and fill following fields:

FastTab General:

Analysis View Code	Show as Lines	Show as Columns
PROFIT TAX	PROFITTAX	G/L Account

FastTab Filters:

• Date Filter - Specifies the dates that will be used to filter the amounts in the window.

FastTab Matrix Options:

• View by - Specifies by which period amounts are displayed.
• View as - Specifies how amounts are displayed. Net Change: The net change in the balance for the selected period. Balance at Date: The balance as of the last day in the selected period.

3. After Setting up Analysis by Dimensions for Profit Tax, click Show Matrix According View by Month, Profit Tax categories used in sales or purchase documents should be summed correctly.

For more information about Analysis Views visit the link.

Recurring General Journal

In order to post profit taxes from Recurring General Journal:

1. Choose the icon, enter Recurring General Journal, and fill mandatory fields for Profit Tax on lines as it’s scheduled below:

#	Field	Description
1.	Recurring Method	V Variable
2.	Recurring Frequency	1M
3.	Posting Date	Date
4.	Document No.	Number
5.	Account Type	Vendor
6.	Account No.	Profit Tax
7.	Description	Profit Tax
8.	Amount	Amount
9.	Amount (LCY)	Amount in Local Currency
10.	Credit Amount	Credit Amount
11.	Pt Code	Choose Profit Tax Article from Profit Tax Categories

2. Click button Profit Tax Calculator in Ribbon Actions > Functions, to calculate the taxable amount according to profit tax rate. Taxable Amount is calculated per Profit Tax Article in Profit Tax Categories, and you can check it in Analysis View > Show Matrix.

Fill the page Profit Tax Calculator fields:

• Operation Type - Choose Accrual or Deduction.
• Taxable Operation Amount - Type amount.
• Tax Rate – 0.15.
• Profit Tax Amount- will be calculated automatically.

Click OK, and Profit Tax Amount will be generated in Amount, Amount (LCY) and Credit Amount fields.

3. After clicking Post, it’s possible to check the related entries and accounts, that were posted:

• G/L Entry
• Vendor Ledger Entry
• Detailed Vendor Ledg.Entry
• G/L Correspondence Entry