LOCAL ACTUAL TAX ADJUSTMENTS

In the Local Actual Tax Adjustments page, users can enter each unit’s local tax adjustments. Examples include tax credits, withholding tax, and other adjustments. Because tax adjustments are tracked separately within jurisdictions, national tax adjustments do not flow down to the local calculation.

Enter a separate line item for each local tax adjustment:

1.Select the Code-Description and then Tag or Class/Sub-Class.
2.Select the type of adjustment. It will usually be a P&L adjustment. However, if users are entering an item that does not have any impact on the current tax expense; for example,  stock option expense, select E - Equity Adjustment.
3.Enter the amount of the current tax adjustment in local currency.
4.Click Add New to create the adjustment.

 

After a tax adjustment is created, users can edit or delete the item by clicking the appropriate icon.

1.Click the pencil icon to edit the entry.
2.Select Save Changes after making any changes.

 

•Users can attach files to an individual local tax adjustment item on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item.
•Users have the ability to add and update notes to a line item. Users may click on the notes icon then add notes, as needed.
•The impact of individual local tax adjustments on the tax provision can be viewed on the Local Interim Provision report and the Local Deferred Balances report.

 

Notes:

•Refer to the Where to Enter Items in ONESOURCE Tax Provision section for more information on the different types of adjustments; for example, current activity, deferred only, and balance sheet only.
•If a new local tax adjustment item is required, contact the Corporate Tax Department.