What is 'tax base amount' in SAP FI - Financial Accounting?

tax base amount - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: An amount on which the tax is calculated. Depending on the respective country-specific requirements, the cash discount amount may or may not be contained in the tax base amount.

tax base amount - Details

• 
  Key Concepts: 
  Tax base amount is a term used in SAP Financial Accounting (FI) to refer to the amount of money that is subject to taxation. This amount is calculated by subtracting any tax-exempt items from the total taxable income. It is used to determine the amount of taxes that must be paid. 
  
  How to use it: 
  In SAP FI, the tax base amount is calculated by subtracting any tax-exempt items from the total taxable income. This calculation can be done manually or automatically, depending on the system configuration. Once the tax base amount has been determined, it can be used to calculate the taxes due. 
  
  Tips & Tricks: 
  When calculating the tax base amount, it is important to ensure that all tax-exempt items are taken into account. This will ensure that the correct amount of taxes is paid and that no additional taxes are due. 
  
  Related Information: 
  The tax base amount is closely related to other terms such as taxable income, taxable profit, and taxable value. It is also related to other concepts such as deductions, exemptions, and credits. Understanding these concepts will help you better understand how the tax base amount is calculated and used in SAP FI.