2.5.5 Tax Application Method
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.
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.Parent topic: Tax Rules