Profit Tax
Profit Tax accrual automation
The functionality makes it possible to account for operations subject to the monthly profit tax. There is no need for integration with the RS.GE portal.
A user will post profit tax entries through Profit TAX Journal and get results in Financial Report. This will show within reporting period (month) the profit tax amount per article. After this, the user will be able to transfer it into monthly profit tax declaration on the Revenue Service of Georgia.
First of all, it is necessary to create dimensions for Profit Tax Articles in the system.
Profit TAX related fields in TAX Setup GE
- Select the
icon, enter Tax Setup Ge, fill out the following fields in the Profit Tax tab:
| Field | Description |
|---|---|
| Profit TAX Rate | Rate that is used in calculation of Profit TAX Amount |
| Vendor Posting Group for Dividend | Upon filling out Profit Tax Journal, the system goes through Vendor Ledger Entries, checks transactions with Type: Payment, goes to G/L correspondence and retrieves transactions which have a Dividend Account. Multiple Vendor Posting Groups can be chosen at the same time in this field |
| Dividend % | Used in calculation of Dividend Transactions |
| Profit Tax Jnl Template | General Journal Template defined for profit tax |
| Profit Tax Batch | Batch that is defined for posting profit tax |
| Profit Taxation Dimension | Dimension Code to account Profit tax articles |
| Profit Tax Authority | Vendor (Tax Authority) to whom Profit tax will be accrued |
| Dividend % | Specify wht tax % for Dividend operations |
| ILE mandatory in Inv. Shipment | Specify if Applies-to entry should be mandatory for filling in the Inv. Shipment document |
Profit TAX Journal
Open "Profit Tax Journal" > "Suggest Profit Tax Journal Lines"
Profit TAX Journal gives opertunity to fill out the journal using three options:
- Dividend Transactions - Selects transactions through Vendor Ledger Entries, with Document Type: Payment, that have a Dividend Account in G/L correspondence Entries.
- Vendors, with Taxable with profit - Selects Vendor’s transactions from Vendor Ledger Entry, with Document Type: Invoice, Open= No, Taxable with Profit = YES.
- Purchases excluding VAT - Allows to choose transactions from Posted Purchase Invoices and takes Amount Exc. VAT as profit tax base.
- Purchases including VAT - Allows to choose transactions from Posted Purchase Invoices and takes Amount Inc. VAT as profit tax base.
In addition, it is possible to filter purchases by Profit Tax Code. According to the process, the person responsible can select a value (profit tax article) in the Profit Tax Code field before posting the Purchase Order/Invoice. In addition, if necessary, the Profit Tax Code can be changed in the posted purchase invoice using the Update Document function.
| # | Field | Description |
|---|---|---|
| 1. | Posting Date | Current Date by default. |
| 1. | Document Type | Filled out from the transaction. |
| 2. | Source No | Vendor. |
| 4. | Agreement No. | Agreement No. from the transaction. |
| 5. | Currency Code | Filled out from the transaction. |
| 6. | Amount | Original Amount from Vendor Ledger Entry. |
| 7. | Amount LCY | Amount (LCY) from Vendor Ledger Entry. |
| 8. | Calculation Base Amount | Base amount from wich profit tax is calculated |
| 9. | Profit Tax Amount | Specifies Profit TAX Amoun, calculated according to the related formulas*. |
| 10. | Corrected Amount LCY | Specify whether the profit tax amount should be calculated from a different base amount. |
| 11. | Due Date | Due Date from Vendor Ledger Entry. |
| 12. | Global Dimension 1 | Global Dimension 1 from Vendor Ledger Entry. |
| 13. | Global Dimension 2 | Global Dimension 2 from Vendor Ledger Entry. |
| 14. | Dimension Set ID | Dimension Set ID from Vendor Ledger Entry. |
| 15. | Profit Tax | Profit Tax code from Vendor Ledger Entry. |
Profit TAX Calculation for Dividend:
[Amount Net/(1-Profit Tax % from Tax Setup GE)/ (1-Dividend% from Tax Setup GE)*Profit Tax %
Profit TAX Calculation for Taxable with Profit/ Purchases excluding/including VAT:
[Amount Net/(1-Profit Tax % from Tax Setup GE)*Profit Tax %
Select lines and click "Create Jnl. from Selected lines". The system will create General Journal lines:
| # | Field | Description |
|---|---|---|
| 1. | Posting Date | Current Date by default. |
| 2. | Account Type | Vendor. |
| 3. | Account No | Filled out from Profit Tax Vendor defined in Tax Setup GE. |
| 4. | Bal. Account No | Filled out from Profit TAX Batch defined in Tax Setup GE. |
| 5. | Amount | Profit TAX Amount with '-"sign. |
| 6. | Global Dimension 1 | Global Dimension 1. |
| 7. | Global Dimension 2 | Global Dimension 2. |
| 8. | Dimension Set ID | Dimension Set ID. |
If a document has already been moved to the "Profit Tax Journal", then by selecting the same document for taxation, it will not be moved to the "Profit Tax Journal".
After posting Profit TAX Journal, the system generates related entries in G/L entries, Vendor Ledger Entries, Detailed Vendor Ledger Entries, and transfers transactions to Posted Profit TAX.
If the same document was selected for taxation and the document is already subject to profit tax -> the document will not be moved to the profit tax journal.
In Profit Tax Journal, upon filling lines, with suggest options: Vendors with Taxable with Profit, Purchases excluding VAT, Purchases including VAT, added functionality of considering Credit Memos.
Profit Tax accrual - manually
If a user doesn't use Profit TAX Automation functionality, Profit tax can be posted manually using the General Journal.
Profit Tax Declaration
The user can retrieve the Profit Tax Declaration using the Financial Report and the user will be able to transfer it into monthly profit tax declaration on the Revenue Service of Georgia.
- Select the icon, enter Analysis View and create Analysis View Card for Profit Tax filling out the fields below:
FastTab General:
| Code | Account Source | Date Compression | Update on Posting |
|---|---|---|---|
| PROFIT TAX | G/L Account | Month | Checkbox - On |
FastTab Dimensions:
- Dimension Code - PROFITTAX
- Create Financial Report and Setup ROW and COLUMN definitions. Select the "Profit Tax" analysis view for ROW and COLUMN:
- ROW Definition:
| Row No | Descripton | Totaling type | Dimension Totaling | Totaling | Row Type | Amount Type | Bold |
|---|---|---|---|---|---|---|---|
| Dimension Code of the Article | Desription of the Article | Account Category/Posting Account | Select the relevant dimension codes for the article | Categories/GL Accounts | Net change | Net Amount | "true" for totaling articles |
- COLUMN Definition:
| Column No | Column Header | Column type | Legder Entry Type | Amount type | Formula |
|---|---|---|---|---|---|
| A | Turnover | Formula | Entries | Net Amount | B*(85/100)(15/100) |
| B | Profit Tax | Net Change | Entries | Net Amount |