Tax

Tax is a complex module that always represent a challenge to be applied due to diverse  calculation rules among different countries. Magnar manage tax calculation in a generic way where each country represented in a tax plugin that can easily managed and changed without affecting the while system. The following form is the tax setup that is required for the tax calculation:

Due to the probability of changing the tax rules, Magnar tied the setup with the year then in case of any change in the tax slices, the history will be archived for later usage. Tax setup can also be changed based on the employee type where different slices can be used for different employee types.

To manage the tax setup, user should select the year and employee type, in case the setup already configured, then the configuration will be populated with the ability to edit based on the user authorization otherwise, the fields will be empty, and user can start setting the values.

Tax setup form include the below fields:

1. Taxable amount: is the amount to be used for tax calculation.
2. Exemption: is the element where the plugin will save the exemption value after calculation.
3. From: is the beginning value of the slice.
4. To: ending value of the slice.
5. Percentage%: tax percentage based on the slice.
6. Ceiling: in some countries like “Egypt”, the tax slices changed based on the salary amount, where the number of slices is not fixed and some of the slices will be removed depending on the salary, ex: if the employee’s yearly salary is below 700,000 the plugin calculate the tax based on the slices where if the salary exceeds the 700,000, the first slice will be ignored, the “Ceiling” field is used to specify what slices to read based on the ceiling value where the plugin check the ceiling amount and get all the slices starting from the ceiling.