Company Tax Options
Setup Options > Tax > Company Tax Options

This determines the tax applied to stocked order lines.

This uses the item's tax code.

This uses the tax code of the customer's area.

This uses the tax code of the customer's area (split into state, county and city rates - the total of which is used to calculate tax).

This uses the tax code against the postal/zip code (split into state, county and city - the total of which is used to calculate the sales tax).

This is the company's tax code file you intend using for the USA Tax by advanced geocodes or USA AVP sales tax system options.

Enabling this option lets you capture reverse charge ledger codes and rates in the Tax Code Setup program.
The VAT reverse charges for tax submission feature lets you record VAT which would've been paid by a company if services were procured from within their EU state, but which were in fact procured from another EU state. It caters for VAT requirements in UK and EU countries that need to disclose reverse charges when submitting tax reports.

This levies tax according to GST (federal level) and PST (provincial level). Most provinces charge PST besides GST, but some charge PST on GST. If you are also using Tax by geographic area, then a stock item with a blank tax code is interpreted as being exempt from tax and the tax code assigned to the geographic area when calculating tax for that item on an order is disregarded. Enabling this after defining your product classes requires you to create the _GST product class manually.

This levies tax on the supply of goods and services in Australia and on goods and services imported into Australia. It is essentially a value added tax (VAT) system where tax is paid at each step along the chain of transactions involving goods or services, until the end-user is reached. This is enabled when your nationality code is set to AUS.

This calculates tax using a third party system. Details captured are passed as XML to the query business object supplied by the designer of the third party tax system. This option only applies if you selected the USA tax by advanced geocodes or USA AVP sales tax system options.

Branch level integrates sales tax to General Ledger according to the branch code of the sale. The sales tax ledger account held against the AR branch is used for tax distribution. Tax code level integrates sales tax to General Ledger according to the ledger account held against each tax code. This does not apply to Canadian GST because GST is always integrated at branch level.


This calculates tax at the end of an invoice for each tax rate used in the invoice calculation. The taxable amount for each invoice line is accumulated and the tax is calculated for the total invoice amount to give the invoice level tax value.

This calculates tax for each line on an invoice before it is accumulated into a total invoice tax value. You must select this option if your nationality code is USA and you want sales order programs to calculate tax based on tax limits.


This calculates GST at the end of an invoice for each tax rate used in the invoice calculation.

This calculates GST for each line on an invoice before it is accumulated into a total invoice tax value.

This uses the period end dates defined for your General Ledger as the tax return periods for generating the Tax Return report (you will need to run the Tax Return Setup program). Otherwise you need to use the Tax Return Period Maintenance program to define the tax return period dates for the Tax Return report.

This enables you to define tax codes of up to 20 characters long to comply with legislation where tax codes longer than three characters are required. This option only applies when running SYSPRO in a SQL environment.


This allows you to reduce the taxable portion of lines by the settlement discount percentage for tax codes which are defined as inclusive (i.e. reduces the tax base by the terms discount prior to the tax being calculated). This option allows you to assume the discount is being taken prior to calculating tax. If any tax code is defined as inclusive, then you must select this option before you can reduce the taxable portion of merchandise, freight and miscellaneous charge lines.

This reduces the taxable portion of merchandise lines according to the settlement discount percentage, before tax is calculated.

This reduces the taxable portion of freight lines according to the settlement discount percentage, before tax is calculated.

This reduces the taxable portion of miscellaneous lines according to the settlement discount percentage, before tax is calculated.

This applies if you are using the Basic tax system or Tax by geographic area.
If using Tax by geographic area and a tax code exists for the geographic area, then that code is used (i.e. the codes defined here are only used if no corresponding tax code is held against the geographic area).
If you are using the USA tax by advanced geo codes or USA AVP sales tax system, then an entry in any of the Default sales tax code fields indicates that the default state of the corresponding line is taxable.

Assign a default tax code for miscellaneous charges or leave blank to default to non-taxable.

Assign a default tax code for freight charges or leave blank to default to non-taxable.

Assign a default tax code for non-stocked items or leave blank to default to non-taxable.

Assign a default tax code for credit notes or leave blank to default to non-taxable.

These options apply only to Sales (including Point of Sales) Quotations and Return Merchandise.

This rounds your tax and invoice values to the nearest monetary unit of your currency. Rounding occurs on the total tax amount and total invoice amount (i.e. values at line level are ignored).
The rounding values are output to _RND (for the document value) and _TAX (for the tax value).

This applies rounding to the total tax amount which is applied to the net invoice value. Tax rounding is typically only necessary if required by legislation in your country.

This applies rounding to the total invoice amount. You would typically use this if rounding is required because of the non-existence of small denomination coins (e.g. if the smallest denomination in your currency is 5, rather than 1 or 2). If you select to round both the tax value and the invoice value, then rounding is first applied to the tax value.

This applies tax and/or invoice rounding to invoices for foreign currency customers.


This rounds tax and/or invoice values up to your nearest currency unit (e.g. if rounding to the nearest 5 cents and the invoice value is 101.84, then the invoice value is rounded up to 101.85).

This rounds tax and/or invoice values down to your nearest currency unit (e.g. if rounding to the nearest 5 cents and the invoice value is 101.84, then the invoice value is rounded down to 101.80).

This rounds tax and/or invoice values to the nearest required value where 0-4 is down and 5-9 is up.


This applies tax rounding to all invoices produced from Sales Orders or Dispatch Notes.

This applies tax rounding only to invoices processed using the SO Counter Sales program.

This applies tax rounding only to invoices processed using the SO Counter Sales program, where the Payment type for AR is set to Cash for the Payment code used.

Enter the monetary or local unit of currency to which you want to round tax and invoice values.
For example:
If your smallest monetary unit of currency is 5 cents, then you would probably enter 5 in this field. If you are using the Point of Sale system, you may need to give change to customers. You can therefore not round invoices to a monetary unit that is less than the smallest coin available (e.g. you would not round to 1 or 2 cents if the smallest available coin is 5 cents).


This indicates that the purchaser is responsible for remitting the tax portion of the purchase to the tax office (i.e. the purchaser makes one payment to the supplier of the goods/services purchased and another payment to the tax office for the withholding tax portion of the transaction).

This calculates the value of withholding tax automatically at the time of making a payment in the Accounts Payable module (Taxable Amount * Withholding Tax Rate)/100). You should not select this option if you are disbursing tax over multiple general ledger tax accounts. For each invoice processed using the AP Invoice Posting program, the withholding tax system recognizes only the first tax code entered.



This calculates withholding tax when the actual invoice payment is made.

This calculates withholding tax when capturing the supplier invoice.

This applies withholding tax to foreign companies/suppliers only.

This applies withholding tax to local companies/suppliers only.

This applies withholding tax to an individual supplier. This can include contractors or consultants.


This bases the calculation on the fixed rate defined in the Withholding Tax Codes Maintenance program (currently only the Fixed rate is used, and is selected by default).

This is similar to tax brackets in which a different % is used depending on the amount (e.g. 0-1000 is 1%, 1001-9999 is 5%, etc.).

This is like a fixed rate, but if the amount is over a certain number (e.g. over 1 million) then an additional % tax is withheld."


This calculates withholding tax on the net invoice value (gross invoice value less tax and less QST if applicable) of the good or service.

This calculates withholding tax on the invoice amount less any trade discounts.



This calculates withholding tax when the payment is made.

This calculates withholding tax when capturing the sales order.
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