Edit the Income Tax calculation settings

Modified on Tue, 30 Apr 2024 at 01:33 PM

You can edit the settings that apply to the income tax calculation at any time but there are some that you may want to edit before starting the tax calculation.

  1. Open the entity’s income tax calculation.
  2. Click the Settings tab > Settings.
  3. Edit the settings as required:



Profit before tax

By default, the system calculates the profit before tax, and therefore the tax payable, from its Income Statement records.

Instead of TaxLab’s calculation, you may want to use the profit before tax that was calculated by your accounting system.To override the TaxLab profit before tax calculation:

  • Enter the amount in the Profit (loss) before tax per the Financial Statements box.
  • Select the Manually per the Financial Statements amount shown above option.

By default, the IFRS template option is selected. To change this template, select the IRD minimum financial reporting requirements option. Changing the template will reset the financial statement mapping of all accounts. 

Please review the current mapping in place before changing the template.

If you plan to import a trial balance from Xero, use the IRD minimum financial reporting requirements template.

Deferred taxBy default, the system accounts for deferred tax. To stop this, select the No option, then enter the date in the Exclude processed after box.
Statement of Taxable IncomeBy default, in the Statement of Taxable Income, the system displays only the rows of data that are relevant to the entity’s income tax calculation.

To view all of the rows in the statement, select the Show all option.
Imputation Credit AccountBy default the ICA is turned on. This means you can view and add ICA transactions on the Workpaper > Under Credits > Imputation Credit Account.

To turn the ICA off, select the No option.
Financial Statements Summary (IR10)By default, the Financial Statements Summary IR10 is turned on. This means you can view and complete the Financial Statements Summary IR10 in the Reports > Tax Return > Financial Statements Summary IR10 tab. To turn the Financial Statements Summary IR10 off, select the No option.

Tip: You can also turn this setting on and off directly on the Financial Statements Summary IR10 tab.

E-fileBy default, the E-File feature is turned off. To turn this feature on and therefore, enable the income tax return to be filed electronically with the IRD, select the Return is E-Filed check box.
EOT status

By default, the EOT status is Y – With EOT. To change this status, select the applicable status from the list:

  • L – Late provision of information
  • D – Deferred policing
  • R – Returns outstanding
  • N – Without EOT
  • Not agency linked
Return statusSee the Complete an income tax return article for instructions on how to lock or unlock a return.
Return filed dateWhen you file a return with the IRD, you can record the file date in TaxLab. Enter the date you filed the return. Please note that this setting is only applicable when the return is locked
Foreign exchange rate

When you set up a foreign exchange rate, the entity’s trial balance and tax calculation does not change. However, if the entity is a member of a consolidated accounting group, the Tax Position and the Tax Notes for that entity will be translated, when being viewed at the group level.

  1. Select the currency from the Code drop-down list.
  2. Enter the exchange rate.

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