I have a case where a 0% deductible taxes must be reported with the base and tax amount as if they were computed.
So I’m wondering if other countries has similar cases? I’m interested to hear especially about other deductible rates like 50%.
Here in Costa Rica we have a 0% IVA (VAT) deductible tax used for the public health institution and city government. We also have a 1% rate for agricultural goods and food, 2% for education, 4% medical services and 13% for general VAT.
So what is deducted if it is 0?
I’m not sure to understand what are those rates?
Maybe I did not understand well your original question, you asked for 0% deductible tax that needs to be reported. The 0% doesn’t generate debit or credit tax (no amount of tax is generated), but the base amount assigned must be handled separately and reported in the monthly VAT declaration to the government.
Those are different value added tax (VAT) rate used like when you generate a customer’s or provider’s invoice. For all these different rates the base amount must be accounted separately in the tax declaration report.
OK but what is the original tax rate? Is the base amount reported in the same code as if the tax was deductible?
The original tax rate is 13%. The base amount is reported as if tax was deductible but not in the same line as 13%, i.e. they are not accumulated together, but has a separate line for each rate (0%, 1%, 2%, 13%) in the tax declaration form. I am not sure if by tax code, you mean our tax law code that makes mention of this rule or the identification code in the tax declaration form.
So I think it is not what I call a deductible tax but just a different rate based on some tax rule.
A non-deductible or partially deductible tax is a tax for which the company pay the full amount but can only deduct (request from the authority only a part of it).